Saskatchewan Insurance Act, R.S.S. 1978, c. S-26
- Citation: Saskatchewan Insurance Act, R.S.S. 1978, c. S-26
- Enabled Regulations: 7 Regulations
- Version downloaded by CanLII on 2003-02-27
Warning: This document predates the last update of the collection. It might have been modified or omitted since this last update.
1
SASKATCHEWAN INSURANCE c. S-26
The
Saskatchewan
Insurance Act
being
ChapterS-26oftheStatutesofSaskatchewan,1978(effective
February 26, 1979) as amended by the Statutes of
Saskatchewan, 1979, c.69; 1979-80, c.92; 1980-81, c.28, 76
and 83; 1982-83, c.16; 1983, c.80; 1984-85-86, c.14, 47, 54
and 82; 1986, c.33; 1986-87-88, c.55; 1988-89, c.54; c.15;
1989-90, c.54; 1997, c.S-50.11; 1998, c.35 and 48; 2001, c.8,
23, 33 and 50; and 2002, c.R-8.2.
NOTE:
This consolidation is not official. Amendments have been
incorporated for convenience of reference and the original statutes
andregulationsshouldbeconsultedforallpurposesofinterpretation
and application of the law. In order to preserve the integrity of the
original statutes and regulations, errors that may have appeared are
reproduced in this consolidation.
SHORT TITLE SASKATCHEWAN INSURANCE
35 Licences to insurers under assigned risk plan
1 Short title 36 Notice of application for licence
37 Documents to be filed by applicants for licences
INTERPRETATION 37.1 Power of attorney
2 Interpretation 38 Statement of expenses of organization to be
2.1 Certain annuities deemed always to have been submitted with application
life insurance 39 Organization expenses limited
PART I 40 Conditions precedent to issue of licence
Superintendent and his duties 41 Form of licences
3 Appointment, powers and duties of superintendent 42 Notice of issue of licence
and deputy superintendent SUSPENSION OR CANCELLATION OF LICENCE
3.1 Information or material 43 Power of superintendent to suspend or cancel
4 Evidence licence
5 Oaths 44 Insufficiency of assets to be reported by
6 Actions by superintendent superintendent
6.1 Actions on behalf of consumers 45 Transacting insurance in foreign jurisdiction
6.2 Right to receive notices without authority
7 Officials not to be shareholders 45.1 Insurer to notify superintendent of certain actions
RECORDS 46 Insurer to cease business on suspension or
8 Records of superintendent cancellation of licence
9 Notice of suspension, etc., of licence 47 Notice
10 Certificate of superintendent is evidence of 48 Revival of licence
licence, etc. DEPOSITS
10.1 Restrictions on access to records 49 Deposit of securities
10.2 Agreements with other jurisdictions 50 Value of securities
10.3 Appointment of representatives 51 Substituting securities
10.4 Experts 52 Withdrawal of excess deposit
DUTIES RESPECTING LICENCES 53 Withdrawal of deposit
11 Superintendent to determine right of insurer to 54 Transfer of deposit on purchase or reinsurance
be licensed RECIPROCAL DEPOSITS
12 Decision of superintendent 55 Interpretation of certain sections
INVESTIGATION OF INSURERS 56 Sole deposit of insurer in Saskatchewan
13 Failure to answer inquiries 57 Sole deposit of insurer in another province
14 Superintendent to have access to books, etc., of 58 Use of deposit for reinsurance
an insurer 59 Power to apply sections 55 to 57 to other provinces
15 Duty to furnish information on request ADMINISTRATION OF DEPOSIT
16 Superintendent may require insurer to file copy 60 Use of deposit for reinsurance
of policy, etc. 61 Deposit subject to administration
17 Inspection of certain insurers 62 Application for administration of deposit
SERVICE OF NOTICE OR PROCESS 63 Application by superintendent
18 Service on superintendent 64 Service of notice of motion
19 Insurer to file address 65 Appointment of receiver
20 Superintendent to forward notice or process 66 Termination date fixed by receiver
67 Notice to insured persons under Saskatchewan
ANNUAL REPORT contracts
21 Duty of superintendent to prepare annual report 68 Lists of and claims by persons entitled to share
22 Permissible investments 69 Powers of receiver
23 Appraisement of real estate 70 Application by receiver for order for sale of
securities
APPEAL FROM SUPERINTENDENT'S DECISION 71 Priorities in payment of proceeds of deposit
24 Right of appeal 72 Priority of loss claims
PART II 73 Action of receiver upon receipt of loss claims
General Provisions 74 List of persons entitled to share in deposit
TRANSACTING INSURANCE 75 Application for order for payment on account of
25 Certain insurers deemed to be transacting claims
insurance 76 Payment of delayed claims
26 Reinsurance with unlicensed insurer 77 Application in court for directions or advice
78 Submission by receiver of final accounts
APPLICATION FOR FEDERAL STATUS 79 Subsequent claims
27 Provincial insurer may apply for continuation as 80 Surrender of security
Canada corporation
INVESTMENTS
LICENCES 81 Investment of funds
28 Necessity for licence
29 Insurers which may be licensed BOOKS OF PROVINCIAL INSURERS
30 Effect of licence 82 Books to be kept
31 Conditions of automobile insurance licence 82.1 Records
32 Scope of life insurance licence 83 Share register
33 Scope of fire insurance licence 83.1 Provincial insurer may apply for continuation as
34 Certain standards to be met Canada corporation
86 Annual statement respecting affairs of insurer
SASKATCHEWAN 129 130
INSURANCE
Rateable contribution excluded only by consent
c. S-26
87 Modified statement for Dominion licensees 131 Special stipulations
88 Verification of statement 132 Subrogation
89 Unearned premiums shown as liability
90 Life insurer's statement PART V
91 Certain agents' balances, unpaid premiums, etc., Life Insurance
not to be shown 133 Interpretation of Part
92 Valuation of securities APPLICATION OF PART
93 Advertised statement 134 Application
94 Statements that financial standing guaranteed by 135 Group insurance
Government prohibited
94.1 Reports ISSUANCE OF POLICY AND CONTENTS THEREOF
136 Insurer to issue policy
RESERVES 137 Exceptions
95 Valuation of life insurance and annuity contracts 138 Contents of group policy
96 Hail insurance profits 139 Contents of group certificate
PAYMENTS TO AGENTS CONDITIONS GOVERNING FORMATION
97 Payment to agent deemed payment to insurer OF CONTRACT
UNDERWRITERS AGENCIES 140 Insurable interest
98 Licence necessary 141 Insurable interest defined
142 Contract taking effect
FORFEITURE OF CORPORATE POWERS 143 Default in paying premium
99 Forfeiture of corporate powers upon non-user, etc. 144 Who may pay premium
145 Duty to disclose
FEES 146 Exceptions
100 Fees 147 Non-disclosure by insurer
PART III 148 Exceptions
Insurance Contracts in Saskatchewan 149 Mis-statement of age in group insurance
101 Application 150 Effect of suicide
102 Contracts deemed made in Saskatchewan 151 Exceptions
POLICY OF INSURANCE DESIGNATION OF BENEFICIARIES
103 Terms, etc., invalid unless set out in full 152 Designation of beneficiary
104 Copy of application 153 Designation of beneficiary irrevocably
105 No contract inconsistent with Act 154 Designation in invalid will
106 Imperfect compliance 155 Trustees for beneficiary
107 Contents of policy 156 Beneficiary predeceasing life insured
108 Application 157 Right to sue
109 Relief from forfeiture 158 Insurance money free from creditors
109.1 Relief from forfeiture on surety bond DEALINGS WITH CONTRACT DURING
110 How policy payable LIFETIME OF INSURED
111 Waiver of term or condition 159 Insured dealing with contract
112 Effect of delivery of policy 160 Insured entitled to dividends
LOSS UNDER POLICY 161 Transfer of ownership
113 Insurer to furnish forms 162 Interest of assignee
114 When action may be brought under contract 163 Group life insured enforcing rights
115 Consolidation of actions MINORS
116 Payment into court 164 Capacity of minors
NOTICES 165 Capacity of minor beneficiary
117 Notices, how given PROCEEDINGS UNDER CONTRACT
INSURANCE AS COLLATERAL SECURITY 166 Proof of claim
118 Insurance clauses in financing agreements 167 Place of payment
168 Action in Saskatchewan
CONTRACTS COUNTERSIGNED BY AGENTS 169 Limitation of action
119 Agents to sign contracts 170 Documents affecting title
171 Declaration as to sufficiency of proof
MISCELLANEOUS 172 Declaration as to presumption of death
120 Payment of refund to assignee in certain cases 173 Court may make order
121 Effect upon contracts of violation of law 174 Appeal
122 Right of action of judgment creditor against insurer 175 Power of court
in certain cases 176 Payment into court
PART IV 177 Simultaneous deaths
Fire Insurance 178 Insurance money payable in instalments
123 Application of Part 179 Insurer holding insurance money
124 Extent of coverage by contract 180 Court may order payment
125 Renewal of contract 181 Costs
126 Form of contract
c.MISCELLANEOUS PROVISIONS
S-26 SASKATCHEWAN 234 Statutory conditions
235
INSURANCE
Omission or variation of conditions
184 Presumption against agency 236 Notice of statutory conditions
185 Insurer giving information 237 Termination for non-payment of initial or renewal
PART VI premium
Automobile Insurance 238 Right where premium unpaid
INTERPRETATION 239 Insurable interest
186 Interpretation of Part 240 Lack of insurable interest
APPLICATION OF PART POLICIES ON LIVES OF MINORS
187 Application of Part 241 Capacity of minors
APPROVAL OF FORMS MISREPRESENTATION AND NON-DISCLOSURE
188 Approval of forms by superintendent 242 Duty to disclose
243 Incontestability
APPLICATION AND POLICY 244 Application of incontestability to reinstatement
189 Persons forbidden to act as agent 245 Pre-existing conditions
190 Copy of application in policy 246 Misstatement of age
191 Misrepresentation or violation of conditions renders
claim invalid BENEFICIARIES
192 Statutory conditions 247 Designation of beneficiary
193 Exceptions respecting statutory conditions 248 Meaning of "heirs", etc.
249 Trustee for beneficiary
MOTOR VEHICLE LIABILITY POLICIES 250 Documents affecting title
194 Coverage of owner's policy, specific automobile 251 Insurance money free from creditors
195 Coverage of non-owner's policy 252 Group person insured enforcing rights
196 Persons deemed not owners 253 Simultaneous deaths
197 Territorial limits 254 Payment into court
198 Rights of unnamed insured 255 Where beneficiary a minor
199 Additional agreements 256 Beneficiary under disability
200 Exceptions from liability 257 Payments not exceeding $2,000
200.1 Certain exclusions from liability prohibited 258 Place of payment
201 Idem 259 Action in Saskatchewan
202 Same 260 Insurer giving information
203 Same 261 Undue prominence
204 Minimum liability 262 Relief from forfeiture
205 Stipulation in motor vehicle liability policy 263 Presumption against agency
206 Excess insurance 264 Definition of "machine"
207 Agreement for partial payment of claim by insured 265 Payments to hospital under Hospitalization Act or
208 Interpretation Health Services Act
209 Defence where more than one contract
210 Application of insurance money under motor vehicle PART VIII
liability policy Live Stock Insurance
211 Insured to give notice of action 266 Application of Part
267 Extent of insurance
PHYSICAL DAMAGE COVER 268 Part IV statutory conditions apply
212 Stipulations in physical damage cover 269 Term of insurance
213 Partial payment of loss clause
214 Claims to be adjusted with insured PART IX
Hail Insurance
LIMITED ACCIDENT INSURANCE APPLICATION OF ACT
215 Uninsured motorist cover 270 Application of Part
216 Medical expense coverage
217 Accident benefits HAIL COVERAGE
218 Demand for particulars of insurance 271 Powers of insurers
219 Rights of unnamed insured 272 Insurable interest
220 Payment into court APPLICATION FOR INSURANCE
221 Limitation of action 273 Application for insurance
222 Demand on claimant 274 Duty of agents to forward applications
223 Terms of certain insurances
COMMENCEMENT OF LIABILITY
OTHER INSURANCE 275 Time at which contract takes effect
224 Other insurance 276 Procedure where wrong premium tendered
SUBROGATION 277 Procedure by insurer on receipt of application
225 Subrogation 278 Policy deemed to be in accordance with
application
PART VII 279 Expiry of contracts
Accident and Sickness Insurance 280 Partial payment of loss clause
INTERPRETATION 281 Premium rates
226 Interpretation of Part 282 Agents' commission
227 Application of Part 283 Notice of termination when loss payable to
228 Group insurance third party
229 Issue of policy 284 Copy of adjustment given to insured
230 Exceptions 285 Procedure where acreage less than stated
231 Contents of group policy in application
286 Statutory conditions part of every policy
287 Relief from forfeiture
289 Extent of insurance SASKATCHEWAN INSURANCE c. S-26
290 Part IV statutory conditions apply MISCELLANEOUS
291 Duration 336 Change of name of company
337 Regulations
PART XI
Mutual Insurance Companies PART XII
292 Application to licensed companies Fraternal Societies
INTERPRETATION
POWERS AND RESTRICTIONS 338 Interpretation
293 Power to undertake insurance
294 Restriction on investments APPLICATION OF PART
295 Power to make bylaws 339 Application of Part
MEMBERS RESTRICTIONS OF LICENSING OF SOCIETIES
296 Insured persons deemed members 340 Cases in which societies not to be licensed
MEETINGS CONSTITUTION, BYLAWS AND RULES
297 Annual meetings 341 Constitution, bylaws and rules to be filed with
298 Special meetings superintendent
299 Notice of meetings 342 Superintendent may take exception within 30 days
300 Members entitled to vote at meetings 343 Notice
301 Quorum 344 Appeal
345 Certification of constitution, bylaws and rules
DIRECTORS 346 Constitution bylaws and rules as filed to be binding
302 Number of directors on society
303 Persons eligible as directors 347 When bylaws or rules must be amended
304 Retirement of directors in rotation 348 Bylaws and rules deliverable on demand
305 Vacancies 349 Substitution of instalments for gross payment
306 Manager may be a director and may be paid 350 Unmatured contract not a liability
a salary
307 Travelling expenses MEMBERS' RIGHTS AND LIABILITIES
351 Limitation of member's liability
DUTIES AND POWERS OF BOARD OF DIRECTORS 352 Notice before forfeiture of benefit
308 Duty to administer affairs of company, etc. 353 Saving rights to reinstatement
309 Appointment of officers and security for 354 Conditions of forfeiture restricted
performance of their duties 355 Conditions as to abstinence
310 Table of rates 356 How notice may be given to members
311 Pro rata payments of losses
312 Distribution of profits REPORTS AND READJUSTMENT OF CONTRACTS
313 Reinsurance 357 Societies to file actuarial report annually
314 Loans to or by directors prohibited 358 Declaration of actuary of soundness of society
359 Distribution of summary and statement to
CANCELLATION AND TRANSFER OF CONTRACTS members
315 Liability on cancellation of policy 360 Insufficiency of assets
316 Assignment of policy 361 Reduction of benefits or increase of rates
362 Readjustment committee, appointment and duties
PREMIUM NOTES AND ASSESSMENTS 363 Amendments of committee to become part of
317 Company may accept premium notes constitution
318 Premium notes not to create lien on land 364 Date to be fixed in report
319 Part of premium may be in cash 365 Duty of society to furnish information and pay
320 Power to make assessments on premium notes expenses
321 Assessments
322 Assessments in the case of hail insurance SPECIAL RATES AND BENEFITS
323 Policy void if assessment not paid 366 Establishment of separate reserve fund on adoption
324 Assessments to be proportionate of new rates
367 When society may limit period to 20 years
RECOVERY OF ASSESSMENTS 368 Epidemic or unforeseen contingency
325 Action for recovery 369 Additional levies for general or expense fund
326 Evidence of amount due to company 370 Application of surplus
327 Return of premium note after expiration of 371 Certificate of actuary filed before putting into effect
insurance new benefits or rates
328 Judicial centre at which action may be brought
PART XIII
EXECUTIONS AGAINST COMPANY Mutual Benefit Societies
329 Restriction on issue of execution 372 What societies may not be licensed
SURPLUS 373 Application of certain sections of Part XII
330 Yearly profits to be set aside as surplus PART XIV
HAIL INSURANCE Reciprocal or Inter-Insurance Exchanges
331 Hail insurance company not to transact other 374 Interpretation
insurance 375 Authority for exchange of reciprocal contracts of
332 Premium rates subject to approval of insurance
superintendent 376 Subscriber not to be deemed an insurer
333 Setting off debts against hail losses 377 Execution of contract
378 Who may maintain action 431 Powers of certain licensees
379 Declaration by members of exchanges 432 Duty of insurer where licensee ceases to be agent
380 Evidence required before issue of licence 433 Reinstatement of suspended licence
381 Service of process 434 Restrictions respecting salesmen
382 Statement of maximum indemnity 435 Duty of agent where salesman ceases to
383 Reserve fund represent agent
384 Guarantee fund, general 436 Reinstatement of suspended salesman's licence
385 Deficiency 437 Reciprocal arrangement respecting certain licences
386 "Approved securities" 438 Licensing of transportation company as agent
387 Investment of surplus funds and reserve 439 Suspension or cancellation of licence
388 Evidence as to investments
389 Contracts must be on behalf of subscribers only ADVISORY BOARD
390 No reinsurance in another exchange 440 Appointment
391 Attorney not to act until licence granted GENERAL
392 Suspension or revocation of licence 441 Prohibition against effecting contracts with
PART XV unlicensed insurers
Amalgamation, Transfer, Reinsurance 442 Agents personally liable on certain contracts
and Liquidation 443 Agents hold insurance moneys in trust for insurers
AMALGAMATION, TRANSFER AND REINSURANCE 444 Payments to unlicensed agents prohibited
393 Interpretation of Part, "reinsurance" 445 Inducement to lapse, etc., life insurance policy,
394 Application making of false statement, etc., prohibited
395 Powers of companies as to amalgamation, transfer 446 Return respecting agents of insurer and
and reinsurance general agent
396 Petition to minister INSURANCE ADJUSTERS LICENCES
397 Notice given 447 Acting as adjuster without licence prohibited
398 Documents filed 448 Application for licence
399 Superintendent's report 449 Address for service
400 Capital not impaired 450 Special provisions respecting partnerships
401 Sanction of minister and corporations
402 Transfer of contracts where insurer leaves 451 Certificate to accompany application for licence
Saskatchewan as representative of adjuster
LIQUIDATION 452 Granting of licence
403 Voluntary winding up 453 Classes of adjuster's licences
404 Order of court on application of superintendent 454 Superintendent may require further information
405 Application of Companies winding Up Act 455 Limitations and conditions
406 Appointment of provisional liquidator 456 Expiration of licence
407 Remuneration of provisional liquidator 457 Representative of adjuster to act only for adjuster
408 Notice by insurer of intention to cease business 458 Reinstatement of suspended representative's
409 Power to arrange reinsurance licence
410 Transfer of deposit from receiver to liquidator 459 Suspension or cancellation of licence
411 Termination date for subsisting contracts ADVISORY BOARD
412 Publication of notice of termination date 460 Appointment
413 Sums to be paid or set aside by liquidator
414 Payment of provincial taxes, etc. AGENTS AND ADJUSTERS GENERALLY
415 Schedules to be filed by liquidator 461 Exemption from municipal licence fee
462 Certain information, etc., privileged
PART XVI
Agents and Adjusters PART XVII
INSURANCE AGENTS LICENCES Insurance with Unlicensed Insurers
416 Acting as insurance agent without licence 463 Tax payable by insured where insurer unlicensed
prohibited 464 Return respecting insurance and payment of tax
417 Prohibition respecting holding out 465 Same
418 Prohibition respecting appointment of unlicensed 466 Inspection of records to determine whether contract
persons with unlicensed insurer effected
419 Unauthorized agent not to engage in brokerage
business PART XVIII
420 Application for licence Regulations
421 Address for service 466.1 Insurance
422 Special provisions respecting partnerships and 467 Power of Lieutenant Governor in Council
corporations 467.1 Compensation plan agreements
423 Approval of agent's application by insurers or PART XIX
general agents to be represented Inspections, Investigations and Enforcement
424 Certificate to accompany application for
salesman's licence DIVISION 1
425 Granting of licence Interpretation of Part
426 Classes of agents' licences 468 Interpretation of Part
427 Superintendent may require further information
428 Bond where brokerage business authorized
429 Limitations and conditions
430 Expiration of licence
DIVISION 2 475.3 Administrative penalties
475.31 Power of superintendent to order compliance
Audits, Examinations, Inspections 475.4 Power of court to order compliance
and Investigations 475.41 Costs
469 General powers
470 Proceedings before superintendent PART XX
471 Warning General Provisions
472 Warrant 475.5 Power of superintendent to review, rescind,
473 Copies of documents amend or vary orders
474 Travel costs 475.51 Defamation
475 Receiver or receiver manager 475.6 Immunity
DIVISION 3 475.7 Superintendent and others not compellable to
Offences, Penalties and Enforcement give evidence
475.1 Offences and penalties 475.8 Certificate of superintendent
475.11 Special penalties 475.9 Service
475.2 Compliance orders and restitution Application of Parts IVand VII
475.21 Limitation on prosecution and Coming into Force
CHAPTER S-26
An Act respecting Insurance
SHORT TITLE
Short title
1 This Act may be cited as The Saskatchewan Insurance Act.
INTERPRETATION
Interpretation
2 In this Act, except where inconsistent with the interpretation sections of any
Part:
(a) "accident insurance" means insurance by which the insurance
undertakes, otherwise than incidentally to some other class of insurance
defined by or under this Act, to pay insurance money in the event of accident
to the person or persons insured, but does not include insurance by which the
insurer undertakes to pay insurance money both in the event of death by
accident and in the event of death from any other cause;
(b) "accidental death insurance" means insurance undertaken by an
insurer as part of a contract of life insurance whereby the insurer undertakes
to pay an additional amount of insurance money in the event of the death by
accident of the person whose life is insured;
(c) "adjuster" means a person who:
(i) on behalf of an insurer or an insured, for compensation, directly or
indirectly solicits the right to negotiate the settlement of or investigate a
loss or claim under a contract or a fidelity, surety or guaranty bond
issued by an insurer, or investigates, adjusts or settles any such loss or
claim; or
(ii) holds himself out as an adjuster, investigator, consultant or adviser
with respect to the settlement of any such loss or claim;
but does not include:
(iii) a barrister or solicitor acting in the usual course of his profession;
(iv) a trustee or agent of the property insured;
(v) a salaried employee of a licensed insurer while acting on behalf of
such insurer in the adjustment of losses; or
(vi) a person who is employed as an appraiser, engineer or other expert
solely for the purpose of giving expert advice or evidence;
(d) "agent" or "insurance agent" means a person who:
(i) solicits, negotiates or effects for or on behalf of any insurer a contract
of insurance;
(ii) for compensation, acts in the solicitation or negotiation of insurance;
(iii) transmits, for compensation, for a person other than himself, an
application for or a policy of insurance to or from an insurer; or
(iv) retains as compensation any portion of a premium received by him;
and includes a general agent but does not include an officer or salaried
employee of an insurer;
(e) "aircraft insurance" means insurance against loss of or damage to an
aircraft and against liability for loss or damage to persons or property caused
by an aircraft or by the operation thereof;
(f) "approved securities" means cash or securities in which trustees are
by law permitted to invest trust funds and which are approved by the
superintendent;
(g) "assigned risk plan" means an agreement or plan made, established
and approved pursuant to section 213;
(h) "automobile" includes a trolley bus and a self-propelled vehicle, and the
trailers, accessories and equipment of automobiles, but does not include
railway rolling stock that runs on rails, watercraft or aircraft;
(i) "automobile insurance" means insurance:
(i) against liability arising out of:
(A) bodily injury to or the death of a person; or
(B) loss of or damage to property;
caused by an automobile or the use or operation thereof; or
(ii) against loss of or damage to an automobile and the loss of use
thereof;
and includes insurance otherwise coming within the class of accident
insurance where the accident is caused by an automobile or the use or
operation thereof, whether liability exists or not, if the contract also includes
insurance described in subclause (i);
(j) "beneficiary" means a person designated or appointed as one to whom
or for whose benefit insurance money is to be payable;
(k) "boiler and machinery insurance" means insurance against loss or
damage to property and against liability for loss or damage to persons or
property through the explosion, collapse, rupture or breakdown of, or accident
to, boilers or machinery of any kind;
(l) "chief agency" or "chief office" means the principal office or place of
business in Saskatchewan of any licensed insurer having its head office
outside Saskatchewan;
(l.1) "compensationassociation" means a body corporate or unincorporated
association:
(i) the purpose of which is to establish and administer a compensation
plan for claimants and policy holders of insolvent insurers; and
(ii) that has been designated pursuant to the regulations as a
compensation association;
(l.2) "compensation plan" means a plan that is implemented or conducted
under an agreement that is entered into pursuant to section 467.1;
(m) "contract" means a contract of insurance and includes a policy,
certificate, interim receipt, renewal receipt or writing evidencing the contract,
whether sealed or not, and a binding oral agreement;
(n) "co-operative insurance company" means an insurer incorporated or
registered under The Co-operative Associations Act or any former Co-operative
Associations Act;
(o) "court" means Her Majesty's Court of Queen's Bench for Saskatchewan
or a judge thereof;
(p) "credit insurance" means insurance against loss to the insured
through insolvency or default of a person to whom credit is given in respect of
goods, wares or merchandise;
(q) "crop insurance" means insurance against loss of or damage to
growing crops from risks or perils to which such crops may be exposed;
(r) "disability insurance" means insurance undertaken by an insurer as
part of a contract of life insurance whereby the insurer undertakes to pay
insurance money or to provide other benefits in the event that the person
whose life is insured becomes disabled as a result of bodily injury or disease;
(s) "due application" includes such information, evidence and material as
the superintendent requires to be furnished; and also the payment of the fees
hereinafter prescribed in respect of any application, certificate or document
required or issued by virtue of this Act;
(t) "employer's liability insurance" means insurance, not being insurance
incidental to some other class of insurance defined by or under this Act,
against loss to an employer through liability for accidental injury to or death
of an employee arising out of or in the course of his employment, but does not
include workmen's compensation insurance;
(u) "endowment insurance" as applied to a fraternal society means an
undertaking to pay an ascertained or ascertainable sum at a fixed future date,
if the person whose life is insured is then alive, or at his death, if he dies before
such date;
(v) "exchange" or "reciprocal or inter-insurance exchange" means a
group of subscribers exchanging reciprocal contracts of indemnity or inter-
insurance with each other through the same attorney;
(w) "fire insurance" means insurance, not being insurance incidental to
some other class of insurance defined by or under this Act, against loss of or
damage to property through fire, lightning or explosion due to ignition;
(x) "foreign jurisdiction" means any jurisdiction other than Saskatchewan;
(y) "fraternal society" means a society, order or association incorporated
for the purpose of making with its members only, and not for profit, contracts
of life, accident or sickness insurance in accordance with its constitution,
bylaws and rules and this Act;
(z) "general agent" means a person acting under authority from an insurer
to supervise and appoint agents, inspect risks and otherwise transact
business for, or as a representative of, such insurer;
(aa) "governing executive authority" means the executive committee,
executive board, management committee, grand executive committee, or such
other board, committee or body as is charged under the constitution, bylaws
and rules of a fraternal society with its general management between general
meetings;
(bb) "guarantee insurance" means the undertaking to perform an
agreement or contract or to discharge a trust, duty or obligation upon default
of the person liable for such performance or discharge or to pay money upon
such default or in lieu of such performance or discharge, or where there is loss
or damage through such default, but does not include credit insurance;
(cc) "hail insurance" means insurance against loss of or damage to
growing crops caused by hail;
(dd) "head office" means the principal office or place of business of a
licensed insurer;
(ee) "industrial contract" means a contract of life insurance for an
amount not exceeding $2,000, exclusive of any benefit, surplus, profit,
dividend or bonus also payable under the contract, and which provides for
payment of premiums at fortnightly or shorter intervals, or, if the premiums
are usually collected at the home of the insured, at monthly intervals;
(ff) "inland transportation insurance" means insurance, other than
marine insurance, against loss of or damage to property:
(i) while in transit or during delay incidental to transit; or
(ii) where, in the opinion of the superintendent, the risk is substantially
a transit risk;
(gg) "insurance" means the undertaking by one person to indemnify
another person against loss or liability for loss in respect of a certain risk or
peril to which the object of the insurance may be exposed, or to pay a sum of
money or other thing of value upon the happening of a certain event and
includes life insurance;
(hh) "insurance fund", as applied to a fraternal society or as applied to any
corporation not incorporated exclusively for the transaction of insurance,
includes all money, securities for money and assets appropriated by the rules
of the society or corporation to the payment of insurance liabilities or
appropriated for the management of the insurance branch or department or
division of the society, or otherwise legally available for insurance liabilities,
but does not include funds of a trade union appropriated to or applicable for
the voluntary assistance of wage earners unemployed or upon strike;
(ii) "insurance money" means the amount payable by an insurer under a
contract, and includes all benefits, surplus, profits, dividends, bonuses and
annuities payable under the contract;
(jj) "insurer" means a person who undertakes or agrees or offers to
undertake a contract;
(kk) "life insurance" means insurance whereby an insurer undertakes to
pay insurance money:
(i) on death;
(ii) on the happening of an event or contingency dependent on human
life;
(iii) at a fixed or determinable future time; or
(iv) for a term dependent on human life;
and, without limiting the generality of the foregoing, includes:
(v) accidental death insurance;
(vi) disability insurance; and
(vii) an undertaking given by an insurer, whether before or after this
section comes into force, to provide an annuity or what would be an
annuity except that the periodic payments may be unequal in amount;
but does not include accident insurance;
(ll) "live stock insurance" means insurance, not being insurance incidental
to some other class of insurance defined by or under this Act, against loss
through the death or sickness of or accident to an animal;
(mm) "marine insurance" means insurance against marine losses; that is
to say, the losses incident to marine adventure, and may by the express terms
of a contract or by usage of trade extend so as to protect the insured against
losses on inland waters or by land or air which are incidental to any sea
voyage;
(nn) "minister" means the member of the Executive Council charged for the
time being by the Lieutenant Governor in Council with the administration of
this Act;
(oo) "motor vehicle liability policy" means a policy or part of a policy
evidencing a contract insuring:
(i) the owner or driver of an automobile; or
(ii) a person who is not the owner or driver thereof where the
automobile is being used or operated by his employee or agent or any
other person on his behalf;
against liability arising out of bodily injury to or the death of a person or loss
or damage to property caused by an automobile or the use or operation
thereof;
(pp) "mutual benefit society" means a society formed for the purpose of
providing any or all of the following benefits for its members:
(i) funeral benefits not exceeding $400; or
(ii) sickness, accident and disability benefits or any one or more of them
not exceeding $12 per week;
(qq) "mutual insurance company" means a corporation without share
capital that provides insurance on the mutual plan;
(rr) "non-owner's policy" means a motor vehicle liability policy insuring a
person solely in respect of the use or operation by him or on his behalf of an
automobile that is not owned by him;
(ss) "officer" includes any trustee, director, manager, treasurer, secretary
or member of the board or committee of management of an insurer or any
person appointed by the insurer to sue and be sued in its behalf;
(tt) "owner's policy" means a motor vehicle liability policy insuring a
person in respect of the ownership, use or operation of an automobile owned
by him and within the description or definition thereof in the policy and, if the
contract so provides, in respect of the use or operation of any other automobile;
(uu) "paid in", when applied to the capital stock of an insurer or to any
shares thereof, means the amount paid to the insurer on its shares, not
including the premium, if any paid thereon, whether such shares are or are
not fully paid;
(vv) "paid up", when applied to the capital stock of an insurer or to any
shares thereof, means capital stock or shares on which there remains no
liability, actual or contingent, to the issuing insurer;
(ww) "plate glass insurance" means insurance, not being insurance
incidental to some other class of insurance defined by or under this Act,
against loss of or damage to plate, sheet or window glass, whether in place or
in transit;
(xx) "policy" means an instrument evidencing a contract;
(yy) "premium" means the single or periodical payment under a contract
for the insurance, and includes dues, assessments and other considerations;
(zz) "premium note" means an instrument given to a mutual insurance
company as consideration for insurance, whereby the maker undertakes to
pay such sum or sums as may be legally demanded by the company, the
aggregate of such sums not to exceed an amount specified in the instrument,
and includes any undertaking to pay such sums regardless of the form thereof;
(aaa) "property" includes profits, earnings and other pecuniary interest,
and expenditure for rents, interest, taxes and other outgoings and charges
and inability to occupy the insured premises, but only to the extent of express
provision in the contract:
(bbb) "property damage insurance" means insurance against loss of or
damage to property that is not included in or incidental to some other class of
insurance defined by or under this Act;
(ccc) "provincial insurer" means an insurer incorporated under the laws
of Saskatchewan and not registered under the Canadian and British
Insurance Companies Act (Canada);
(ddd) "public liability insurance" means insurance against loss or
damage to the person or property of others that is not included in or incidental
to some other class of insurance defined by or under this Act;
(eee) "registrar" means the Registrar of Joint Stock Companies;
(fff) "sickness insurance" means insurance by which the insurer undertakes
to pay insurance money in the event of sickness of the person or persons
insured, but does not include disability insurance;
(ggg) "sprinkler leakage insurance" means insurance against loss of or
damage to property through the breakage or leakage of sprinkler equipment
or any other fire protection system, or of pumps, water pipes or plumbing and
its fixtures;
(hhh) "superintendent" means the Superintendent of Insurance and
includes the Deputy Superintendent of Insurance;
(iii) "theft insurance" means insurance against loss or damage through
theft, wrongful conversion, burglary, housebreaking, robbery or forgery;
(jjj) "title insurance" means insurance against loss or liability for loss due
to the invalidity of the title to any property or of any instrument, or to any
defect in such title or instrument;
(kkk) "upon proof", as applied to any matter connected with the licensing
of an insurer or other person, means upon proof to the satisfaction of the
superintendent;
(lll) "weather insurance" means insurance against loss or damage through
windstorm, cyclone, tornado, rain, hail, flood or frost, but does not include hail
insurance;
(mmm) "workmen's compensation insurance" means insurance of an
employer against the cost of compensation prescribed by statute for bodily
injury, disability or death of a workman through accident or disease arising
out of or in the course of his employment.
R.S.S. 1965, c.143, s.2; 1968, c.64, s.2; 1970, c.59,
s.2; R.S.S. 1978, c.S-26, s.2; 1984-85-86, c.82, s.3;
1986-87-88, c.55, s.3.
Certain annuities deemed always to have been life insurance
2.1 An undertaking described in subclause 2(kk)(vii) is deemed always to have
been life insurance.
1984-85-86, c.82, s.4.
PART I
Superintendent and his duties
SUPERINTENDENT OF INSURANCE
Appointment, powers and duties of superintendent and deputy superintendent
3(1) There may be appointed an officer to be called the Superintendent of
Insurance, who shall have general supervision of the business of insurance within
Saskatchewan and shall see that the laws relating to the conduct thereof are
enforced and obeyed and shall examine and report to the minister from time to time
upon all matters connected with insurance.
(2) There may also be appointed an officer to be called the Deputy Superintendent
of Insurance, who shall act as superintendent during the absence or inability of the
superintendent and shall perform such other duties as are assigned to him by this
Act, by the Lieutenant Governor in Council, by the minister or by the superintendent.
R.S.S. 1965, c.143, s.3; R.S.S. 1978, c.S-26, s.3.
Information or material
3.1(1) At any time, the superintendent may direct a person to provide the
superintendent with any information or material the superintendent reasonably
requires for the purposes of this Act and the regulations.
(2) The superintendent may determine a reasonable time within which a person
shall provide the information or materials directed to be provided pursuant to
subsection (1).
1998, c.35, s.3.
Evidence
4 For the purpose of his duties under this Act the superintendent may require to
be made and may take and receive affidavits, statutory declarations and depositions,
and may examine witnesses under oath; and he shall have the same powers to
summon officers of corporations, receivers and liquidators and other persons to
attend as witnesses, to enforce their attendance, and to compel them to produce
books, documents and things and to give evidence as the court has in civil cases.
R.S.S. 1965, c.143, s.4; R.S.S. 1978, c.S-26, s.4.
Oaths
5 An oath required by this Act to be taken may be administered by the
superintendent or by any person authorized to administer oaths in Saskatchewan.
R.S.S. 1965, c.143, s.5; R.S.S. 1978, c.S-26, s.5.
Actions by superintendent
6 The superintendent may bring actions and institute proceedings in his name of
office for the enforcement of any of the provisions of this Act or for the recovery of
fees and penalties payable hereunder.
R.S.S. 1965, c.143, s.6; R.S.S. 1978, c.S-26, s.6.
Actions on behalf of consumers
6.1(1) The superintendent may do any of the things mentioned in
subsection (2) if:
(a) the superintendent is satisfied that, with respect to a transaction
involving the products or services of an insurer, agent or adjuster, a consumer
has:
(i) a cause of action;
(ii) a defence to an action;
(iii) grounds for setting aside a default judgment; or
(iv) grounds to appeal or contest a judgment;
(b) the superintendent considers that the conduct of the insurer, agent, or
adjuster involved or any of its agents or representatives was misleading,
unconscionable or deceptive; and
(c) the superintendent obtains the written consent of the consumer and
the consent of the minister.
(2) In the circumstances mentioned insubsection (1), the superintendent, on
behalf of a consumer, may, with a view to enforcing or protecting the consumer's
rights respecting a contravention or suspected contravention of this Act or the
regulations:
(a) institute or assume the conduct of any proceedings; or
(b) defend any proceedings.
(3) With respect to proceedings mentioned in subsection (2):
(a) the superintendent, on behalf of the consumer, has the same rights in
and control over the proceedings that the consumer has, including the right to
settle all or part of any action;
(b) the superintendent may conduct the proceedings in any manner that the
superintendent considers appropriate, without being required to consult the
consumer or obtain any additional consents;
(c) any money, other than costs, recovered by the superintendent is the
property of the consumer and shall be paid to the consumer;
(d) in the case of costs awarded against:
(i) the insurer, agent or adjuster, the costs are the property of the
superintendent and shall be paid to the superintendent; or
(ii) the consumer or the superintendent, the superintendent shall pay
the costs.
(4) If a party to proceedings mentioned in this section files a counterclaim and the
counterclaim is not related to the proceedings, the court, on the application of the
superintendent:
(a) shall order that the counterclaim be heard separately and that the
consumer be made a party to the counterclaim in the consumer's own right;
and
(b) may make any other order respecting the counterclaim that the court
considers appropriate.
1998, c.35, s.4.
Right to receive notices
6.2(1) Unless exempted from doing so in the regulations, no provincial insurer
shall fail to immediately inform the superintendent in writing of any action or
proceeding brought with respect to the provincial insurer.
(2) The superintendent is entitled to appear and to be heard, in person or by
counsel, in any action or proceeding mentioned in subsection (1).
(3) No provincial insurer shall fail to provide the superintendent with a copy of
any order or judgment of the court within one day after the order or judgment is
made.
1998, c.35, s.4.
Officials not to be shareholders
7 The superintendent, the deputy superintendent, or any officer or clerk in the
office of the superintendent, shall not directly or indirectly be interested as a
shareholder in any insurance company doing business in Saskatchewan.
R.S.S. 1965, c.143, s.7; R.S.S. 1978, c.S-26, s.7.
RECORDS
Records of superintendent
8(1) The superintendent shall keep the following records:
(a) a record of all licences issued to insurers pursuant to this Act, in which
shall appear the name of the insurer, the address of the head office, the
address of the principal office in Canada, the name and address of the chief
office or general agent in Saskatchewan, the number of the licence issued,
particulars of the classes of insurance for which the insurer is licensed, and
such other information as the superintendent deems necessary;
(b) a record of all securities deposited by each insurer with the minister,
naming in detail the several securities, their par value, their date of maturity
and the value at which they are received as deposit;
(c) a record of all licences issued pursuant to this Act.
(2) The records required by this section to be kept shall be open to inspection in
the office of the superintendent by any person upon payment of the prescribed fee.
R.S.S. 1965, c.143, s.8; R.S.S. 1978, c.S-26, s.8.
Notice of suspension, etc., of licence
9 The superintendent shall cause to be published in The Saskatchewan Gazette
the name of any insurer whose licence has been suspended, revived or cancelled,
together with the date of such suspension, revival or cancellation.
R.S.S. 1965, c.143, s.9; R.S.S. 1978, c.S-26, s.9.
Certificate of superintendent is evidence of licence, etc.
10 A certificate under the hand and seal of office of the superintendent that on a
stated day:
(a) an insurer, agent or other person mentioned therein was or was not
licensed under this Act;
(b) a licence was issued to an insurer, agent or other person; or
(c) the licence of an insurer, agent or other person was suspended, cancelled,
revived or reinstated;
shall be prima facie evidence of the facts stated in the certificate.
R.S.S. 1965, c.143, s.10; R.S.S. 1978, c.S-26, s.10.
Restrictions on access to records
10.1(1) Notwithstanding The Freedom of Information and Protection of Privacy
Act, any information submitted or provided to the superintendent or obtained by an
audit, examination, investigation or inspection pursuant to this Act is not open to
inspection or available for access except by:
(a) those members of the public service of Saskatchewan employed in the
office of the superintendent whose responsibilities require them to inspect or
allow them to have access to the information; or
(b) those persons who are authorized in writing by the superintendent to
inspect or to have access to the information.
(2) Unless authorized by this Act or by any other law or with the consent of the
person to whom any information relates, no member of the public service of
Saskatchewan employed in the office of the superintendent and no person
authorized by the superintendent to inspect or have access to the information shall:
(a) communicate or allow to be communicated any information obtained
pursuant to this Act to any person who is not legally entitled to the
information; or
(b) allow any person who is not legally entitled to the information obtained
pursuant to this Act to inspect or have access to it.
(3) Notwithstanding subsections (1) and (2), the superintendent may authorize
the release of, inspection of or access to, the information mentioned in those
subsections to or by any person employed by a government or regulatory authority
inside or outside Canada or to a compensation association where:
(a) the information will be used solely for the purpose of administering or
enforcing an Act or law of Saskatchewan, of Canada, or of another jurisdiction
inside or outside Canada;
(b) the release, inspection or access is pursuant to an agreement made
pursuant to section 10.2; or
(c) the superintendent believes that it is in the public interest to allow the
release, inspection or access.
(4) Notwithstanding subsections (1) and (2), the superintendent may authorize
the release of, inspection of or access to, the information mentioned in those
subsections to or by a law enforcement agency or investigative body inside or
outside Canada where:
(a) the information will be used solely for the purpose of enforcing an Act or
law of Saskatchewan, of Canada or of another jurisdiction inside or outside
Canada;
(b) the release, inspection or access is pursuant to an agreement made
pursuant to section 10.2; or
(c) the superintendent believes that it is in the public interest to allow the
release, inspection or access.
(5) Notwithstanding subsections (1) and (2), the superintendent may authorize
the release of, inspection of or access to, the information mentioned in those
subsections to or by an insurance council, or its employees, or an equivalent body in
another jurisdiction, or its employees, where:
(a) the information will be used solely for the purpose of administering or
enforcing this Act or any Act or law of another jurisdiction similar to this Act;
(b) the release, inspection or access is pursuant to an agreement made
pursuant to section 10.2; or
(c) the superintendent believes that it is in the public interest to allow the
release, inspection or access.
(6) No person to whom information is provided pursuant to this section is
compellable to give evidence concerning that information unless:
(a) the person to whom the information relates consents; or
(b) a court orders the evidence to be given.
(7) On an application for an order pursuant to clause (6)(b):
(a) the superintendent and the person to whom the information relates are
entitled to appear before the court and to make submissions; and
(b) the person seeking the order compelling the evidence has the onus of
showing why it is in the public interest that the order be made.
1998, c.35, s.5.
Agreements with other jurisdictions
10.2 Subject to the approval of the Lieutenant Governor in Council, the
superintendent may enter into an agreement with any other government, regulatory
authority, compensation association, law enforcement agency, investigative body,
insurance council or person inside or outside Canada:
(a) for the purpose of administering or enforcing this Act or any Act or law of
the other jurisdiction that is similar to this Act, including an agreement
authorizing the superintendent to perform responsibilities and exercise
powers on behalf of the other government, regulatory authority, compensation
association, law enforcement agency, investigative body, insurance council or
person and authorizing the other government, regulatory authority,
compensation association, law enforcement agency, investigative body,
insurance council or person to perform responsibilities and exercise powers on
behalf of the superintendent; or
(b) for any other purpose that the superintendent believes is in the public
interest.
1998, c.35, s.5.
Appointment of representatives
10.3(1) The superintendent may appoint any person to carry out any responsibility
imposed on the superintendent pursuant to this Act or to exercise any power
conferred on the superintendent pursuant to this Act.
(2) The exercise of any of the superintendent's powers or the carrying out of any of
the superintendent's responsibilities by a person to whom they are delegated is
deemed to be the exercise or the carrying out by the superintendent.
1998, c.35, s.5.
Experts
10.4(1) The superintendent may retain any person the superintendent considers
to be an expert in a field of knowledge to assist the superintendent in carrying out
the superintendent's responsibilities or in exercising the superintendent's powers
pursuant to this Act.
(2) The superintendent may apply to the court for an order directing any insurer
to pay the costs, fees and expenses of an expert retained pursuant to subsection (1).
(3) On an application pursuant to subsection (2), the court may make any order
respecting the payment of costs, fees and expenses that the court considers
appropriate.
1998, c.35, s.5.
DUTIES RESPECTING LICENCES
Superintendent to determine right of insurer to be licensed
11 The duty of determining the right of any insurer to be licensed under this Act
shall devolve upon the superintendent subject to appeal as provided by section 24,
but nothing in this section affects the right of the Lieutenant Governor in Council or
of the minister to suspend or cancel any licence in the exercise of his authority
under this Act.
R.S.S. 1965, c.143, s.11; R.S.S. 1978, c.S-26, s.11.
Decision of superintendent
12(1) Every decision of the superintendent upon an application for a licence shall
be in writing and notice thereof shall be forthwith given to the applicant.
Certified copy of
(2) The applicant or any person interested shall be entitled to a certified copy of
the decision.
Stenographic report of evidence
(3) The evidence and proceedings in any matter before the superintendent may be
reported by a stenographer sworn before the superintendent to report the same
faithfully.
R.S.S. 1965, c.143, s.12; R.S.S. 1978, c.S-26, s.12.
INVESTIGATION OF INSURERS
Failure to answer inquiries
13 The superintendent may direct to an insurer any inquiry touching the
contracts or the financial affairs of the insurer and the insurer shall be bound to
make prompt and explicit answer to such inquiry, and in case of refusal or neglect
to answer is guilty of an offence.
R.S.S. 1965, c.143, s.13; R.S.S. 1978, c.S-26, s.13.
Superintendent to have access to books, etc., of an insurer
14 The superintendent or any person authorized under his hand or seal of office
shall, at all reasonable times, have access to all the books, securities and
documents of an insurer that relate to contracts of insurance, and any officer,
general agent or person in charge, possession, custody or control of such books,
securities or documents who refuses or neglects to afford such access is guilty of an
offence.
R.S.S. 1965, c.143, s.14; R.S.S. 1978, c.S-26, s.14.
Duty to furnish information on request
15 It shall be the duty of the officers and agents of a licensed insurer, and of
persons licensed hereunder, to furnish the superintendent on his request with full
information relative to any contract of insurance issued by the insurer that is made
or deemed to be made in Saskatchewan or to the application for such contract, the
amount of the premium and the commission paid or payable to the agent, or
relative to any settlement or adjustment under such contract.
R.S.S. 1965, c.143, s.15; R.S.S. 1978, c.S-26, s.15.
Superintendent may require insurer to file copy of policy, etc.
16(1) The superintendent may require an insurer to file with him a copy of any
form of policy, or form of application for a policy, or any endorsement used or to be
used with regard to any policy as issued or to be issued by the insurer.
Power to prohibit issuance of policy, etc.
(2) The superintendent shall report to the minister any case where an insurer
issues a policy or endorsement or uses an application that in the opinion of the
superintendent is unfair, fraudulent or not in the public interest, and, after hearing
the insurer, the minister may, if he concurs in the report, order the superintendent
to prohibit the insurer from issuing such form of policy or application or
endorsement.
Consequence of disregarding prohibition
(3) An insurer that, after being so prohibited, issues any such policy or endorsement,
or uses such application is guilty of an offence against this Act.
R.S.S. 1965, c.143, s.16; R.S.S. 1978, c.S-26, s.16.
Inspection of certain insurers
17(1) The superintendent shall visit personally, or cause to be visited, at least
once in every year, the head office of every licensed provincial insurer other than a
mutual benefit society having less than three hundred members, and shall inspect
and examine or cause to be inspected and examined the condition and affairs of
each such insurer and report thereon to the minister as to all matters requiring his
attention and decision, but where in the opinion of the superintendent the
circumstances in the case of any insurer so warrant he may make such visit,
inspection and examination, or cause such visit, inspection and examination to be
made, less frequently than annually but not less frequently than once in every three
years.
Same
(2) Where the superintendent deems it necessary and expedient to make an
examination into the affairs of a licensed insurer other than a provincial insurer
and so reports to the minister, the minister may, in his discretion, instruct the
superintendent to visit the head office in Canada of such insurer to inspect and
examine its affairs and to make such further inquiries as the minister may require.
Duty of officers to facilitate examination
(3) The officers or agents of the insurer shall cause the books and records of the
insurer to be opened for the inspection of the superintendent and shall otherwise
facilitate such examination so far as it is in their power.
Expenses of examination in certain cases
(4) Where the head office of an insurer at which an examination is made pursuant
to subsection (2) is outside Saskatchewan, the insurer shall pay the account in
connection with such examination upon the certificate of the superintendent
approved by the minister.
R.S.S. 1965, c.143, s.17; R.S.S. 1978, c.S-26, s.17.
SERVICE OF NOTICE OR PROCESS
Service on superintendent
18 Where the head office of a licensed insurer is situated outside Saskatchewan,
notice or process in any action or proceeding in Saskatchewan may be served upon
the person appointed attorney of the insurer by a power of attorney filed pursuant
to section 37.1, or, where no appointment of an attorney is then in effect, upon the
superintendent by leaving two copies of each such notice or process in his office, or
forwarding such copies to him by registered mail, and such service shall be deemed
service upon the insurer in the case of a corporation and upon members of the
insurer in the case of an unincorporated body or association.
R.S.S. 1965, c.143, s.18; R.S.S. 1978, c.S-26, s.18;
1998, c.35, s.6.
Insurer to file address
19 Every licensed insurer shall file in the office of the superintendent notice of a
post office address to which such notice or process may be forwarded by the
superintendent, and shall from time to time notify the superintendent of any
change in the address so filed.
R.S.S. 1965, c.143, s.19; R.S.S. 1978, c.S-26, s.19.
Superintendent to forward notice or process
20 The superintendent shall, forthwith after the receipt of such notice or process,
forward one copy thereof to the insurer by registered mail, postage prepaid,
addressed in the manner last notified to him for this purpose by the insurer.
R.S.S. 1965, c.143, s.20; R.S.S. 1978, c.S-26, s.20.
ANNUAL REPORT
Duty of superintendent to prepare annual report
21 The superintendent shall prepare for the minister from the statements filed by
the insurers and from any inspection or inquiries made, an annual report, showing
particulars of the business of each insurer as ascertained from such statement,
inspection and inquiries, and such report may, at the discretion of the minister, be
printed and published forthwith after completion.
R.S.S. 1965, c.143, s.21; R.S.S. 1978, c.S-26, s.21.
Permissible investments
22(1) In the annual report prepared for the minister the superintendent shall
allow as assets only such of the investments of any provincial insurer as are
authorized by this Act, or were authorized by law at the time of their acquisition.
Superintendent's corrections of annual statements
(2) In the said report the superintendent shall make all necessary corrections in
the annual statements made by the insurers as herein provided and shall be at
liberty to increase or diminish the liabilities of such insurers to the true and correct
amounts thereof as ascertained by him in the examination of their affairs at the
head office thereof or otherwise.
R.S.S. 1965, c.143, s.22; R.S.S. 1978, c.S-26, s.22.
Appraisement of real estate
23(1) If it appears to the superintendent, or if he has any reason to suppose, from
the annual statements prepared and delivered to him by insurers, that the value
placed by any provincial insurer, upon any of its real estate is too great, he may
require such insurer to secure an appraisement of such real estate by one or more
competent valuators, or may himself procure such appraisement at the expense of
the insurer; and the appraised value, if it varies materially from the statement
made by the insurer, may be substituted in the annual report of the superintendent.
Appraisement of security
(2) In like manner the superintendent may procure an appraisement of any parcel
of land that constitutes the security for any loan; and if from the appraisal it
appears that the parcel is not adequate security for the loan and accrued interest,
he may reduce the value to such an amount as is fairly realizable from the security,
in no case to exceed the appraised value, and may insert the reduced value in his
report.
Appraisement of other investments
(3) In like manner the superintendent may make, or cause to be made, an
appraisal of the security taken for any investments of the insurer; and if it appears
that the value of the securities as shown on the books of the insurer is greater than
its true value as shown by the appraisal he may reduce the book value thereof to
such amount as is fairly realizable therefrom, and in no case to exceed the
appraised value, and may insert the reduced amount in his annual report.
R.S.S. 1965, c.143, s.23; R.S.S. 1978, c.S-26, s.23.
APPEAL FROM SUPERINTENDENT'S DECISION
Right of appeal
24(1) Any person who is directly affected by an order or decision of the
superintendent pursuant to this Act, other than an order or decision of the
superintendent pursuant to subsection 466.1(7.11), (7.3) or (7.9), may appeal the
order or decision to the court on a question of law only.
(2) An appeal pursuant to subsection (1) is to be commenced within 30 days after
the decision or order was made by:
(a) filing a notice of appeal with the court; and
(b) at the time of filing a notice of appeal pursuant to clause (a), serving a
copy of the notice of appeal on the superintendent.
(3) An appeal does not stay the superintendent's order or decision unless the court
orders otherwise.
(4) On an appeal, the court may do all or any of the following:
(a) uphold the superintendent's order or decision;
(b) overturn the superintendent's order or decision;
(c) refer the matter back to the superintendent for further consideration;
(d) make any order as to costs that the court considers appropriate.
(5) Except where otherwise specifically provided, every order or decision of the
superintendent is final, and no order or decision of the superintendent shall be
questioned or reviewed, restrained or removed by prohibition, injunction, certiorari,
mandamus or any other process or proceeding in any court.
1998, c.35, s.7.
PART II
General Provisions
TRANSACTING INSURANCE
Certain insurers deemed to be transacting insurance
25 Any person undertaking a contract of insurance that is made or deemed to be
made in Saskatchewan, whether the contract is original or a renewal except the
renewal from time to time of life insurance policies, shall be deemed to be
transacting insurance in Saskatchewan and shall be subject to and comply with
this Act.
R.S.S. 1965, c.143, s.25; R.S.S. 1978, c.S-26, s.25.
Reinsurance with unlicensed insurer
26 Nothing in this Act prevents a licensed insurer that has lawfully effected a
contract of insurance in Saskatchewan from reinsuring the risk or any portion
thereof with any insurer transacting insurance outside Saskatchewan and not
licensed under this Act.
R.S.S. 1965, c.143, s.26; R.S.S. 1978, c.S-26, s.26.
APPLICATION FOR FEDERAL STATUS
Provincial insurer may apply for continuation as Canada corporation
27 A provincial insurer may, with the consent of the minister, apply for letters
patent under the Canadian and British Insurance Companies Act (Canada)
continuing it as if it were incorporated under an Act of the Parliament of Canada.
1973-74, c.99, s.1; R.S.S. 1978, c.S-26, s.27.
LICENCES
Necessity for licence
28 No person shall transact insurance in Saskatchewan unless he is the holder of
a subsisting licence under this Act as an insurer.
R.S.S. 1965, c.143, s.27; R.S.S. 1978, c.S-26, s.28.
Insurers which may be licensed
29(1) Upon due application and upon proof of compliance with this Act, the
superintendent may, if in his opinion the applicant is suitable to be licensed and the
proposed licensing is not for any reason objectionable, issue a licence to any insurer
coming within one of the following classes:
(a) joint stock insurance companies;
(b) mutual insurance companies;
(c) co-operative insurance companies;
(d) fraternal societies;
(e) mutual benefit societies;
(f) companies or associations duly incorporated to undertake insurance
contracts and not within any of the foregoing classes;
(g) reciprocal or inter-insurance exchanges;
(h) underwriters or syndicates of underwriters operating on the plan known
as Lloyd's;
(i) members of the Canadian Insurance Exchange.
Classes of insurance
(2) The licence may authorize the insurer to transact any one or more of the
classes of insurance defined in section 2 and such other classes as may be defined
by the regulations.
Limited or conditional licence
(3) The superintendent may, at the time a licence is issued pursuant to this Part
or at any time after the licence is issued, impose any limitations and conditions on
the licence and may amend, vary or repeal those limitations and conditions or
impose new limitations and conditions.
R.S.S. 1965, c.143, s.28; 1970, c.59, s.3; R.S.S.
1978, c.S-26, s.29; 1986-87-88, c.55, s.4.
Effect of licence
30 A licence issued pursuant to this Act authorizes the insurer named therein to
transact the class or classes of insurance specified therein and exercise all rights
and powers reasonably incidental thereto subject to its Act or instrument of
incorporation or organization and this Act.
R.S.S. 1965, c.143, s.29; R.S.S. 1978, c.S-26, s.30.
Conditions of automobile insurance licence
31(1) A licence to carry on automobile insurance in Saskatchewan is subject to the
following conditions:
(a) in any action in Saskatchewan against the licensed insurer or its insured
arising out of an automobile accident in Saskatchewan, the insurer shall
appear and shall not set up any defence to a claim under a contract made
outside Saskatchewan, including any defence as to the limit or limits of
liability under the contract, that might not be set up if the contract were
evidenced by a motor vehicle liability policy issued in Saskatchewan.
(b) in any action in another province or territory of Canada against the
licensed insurer, or its insured, arising out of an automobile accident in that
province or territory, the insurer shall appear and shall not set up any defence
to a claim under a contract evidenced by a motor vehicle liability policy issued
in Saskatchewan, including any defence as to the limit or limits of liability
under the contract, that might not be set up if the contract were evidenced by
a motor vehicle liability policy issued in the other province or territory.
Cancellation
(2) A licence may be cancelled when the holder commits a breach of condition as
set out in subsection (1).
1968, c.64, s.3; R.S.S. 1978, c.S-26, s.31.
Scope of life insurance licence
32 Every insurer licensed to transact life insurance may, unless its licence
expressly provides otherwise, issue annuities and endowments of all kinds and also
include in any policy of life insurance, in respect of the same life or lives insured
thereby, disability insurance and accidental death insurance.
R.S.S. 1965, c.143, s.31; R.S.S. 1978, c.S-26, s.32.
Scope of fire insurance licence
33(1) Every insurer licensed to transact fire insurance may, unless its licence
expressly provides otherwise, insure any property in which the insured has an
insurable interest against loss or damage by fire, lightning or explosion and may
insure the same property against loss or damage from falling aircraft, earthquake,
windstorm, tornado, hail, sprinkler leakage, riot, malicious damage, weather,
water damage, smoke damage, civil commotion and impact by vehicles and any one
or more perils falling within such other classes of insurance as are defined by the
regulations.
Insurance of automobiles against fire
(2) Every insurer licensed to transact fire insurance may insure an automobile
against loss or damage under a policy falling within Part IV of this Act; but in the
case of a mutual insurance company transacting insurance exclusively on the
premium note plan the automobile shall be specifically insured under a policy
separate from that insuring other property.
R.S.S. 1965, c.143, s.32; R.S.S. 1978, c.S-26, s.33.
Certain standards to be met
34(1) Every insurer who is a licensee shall comply with the conditions, including
conditions respecting solvency, capital and other financial standards, prescribed in
the regulations.
(2) No insurer who applies for a licence is entitled to be issued a licence unless it
has complied with the conditions, including conditions respecting solvency, capital
and other financial standards, prescribed in the regulations.
R.S.S. 1978, c.S-26, s.34; 1986-87-88, c.55, s.5.
Licences to insurers under assigned risk plan
35(1) Where an assigned risk plan has been made and established by insurers
transacting automobile public liability insurance or automobile property damage
insurance in Saskatchewan, and has been approved as provided in section 188, a
licence to transact such insurance in Saskatchewan shall not be granted to any
such insurer that is not a party to, or a member of, or does not hold itself bound by,
the assigned risk plan.
Coming into force
(2) Subsection (1) shall come into force on a day to be fixed by proclamation of the
Lieutenant Governor.
R.S.S. 1965, c.143, s.35; R.S.S. 1978, c.S-26,
s.35; 1980-81, c.83, s.47.
Notice of application for licence
36 The superintendent may require such notice of the application for a licence to
be given by publication in the Gazette and elsewhere as he deems necessary.
R.S.S. 1965, c.143, s.36; R.S.S. 1978, c.S-26, s.36.
Documents to be filed by applicants for licences
37(1) Before the issue of a licence to an insurer, the insurer shall file in the office
of the superintendent the following documents:
(a) a certified copy of the Act or other instrument of incorporation or
association of the insurer and of its constitution and bylaws and regulations
verified in a manner satisfactory to the superintendent;
(b) a certified copy of the last balance sheet of the insurer and auditor's
report thereon;
(c) if the head office of the insurer is outside Saskatchewan, notice of the
place where the chief office of the insurer in Saskatchewan is to be situated.
Further information to be furnished
(2) The insurer shall furnish such other information as the superintendent may
require.
Exception
(3) Where the insurer is unincorporated or is registered under the C anadian and
British Insurance Companies Act (Canada) or the Foreign Insurance Companies Act
(Canada), the superintendent may dispense with the filing of any of the documents
mentioned in subsection (1).
R.S.S. 1965, c.143, s.37; R.S.S. 1978, c.S-26, s.37.
Power of attorney
37.1(1) Every licensed insurer that has its head office outside of Saskatchewan
shall file with the superintendent an executed copy of a power of attorney
appointing a person or persons resident in Saskatchewan to act as the insurer's
attorney for the purposes of receiving:
(a) service of process in all actions and proceedings against the insurer in
Saskatchewan for any liability incurred by the insurer in Saskatchewan; and
(b) all notices from the superintendent.
(2) The power of attorney must declare that service of process or notices
mentioned in subsection (1) on the person or persons appointed attorney is legal
and binding on the insurer.
(3) A copy, certified by the superintendent, of a power of attorney filed with the
superintendent is admissible in evidence as conclusive proof, without proof of the
office or signature of the superintendent, of the authority of the person or persons
named in the power of attorney to act as the insurer's attorney for the purposes
mentioned in subsection (1).
(4) Where the insurer changes its attorney, it shall, within seven days of the
appointment, comply with subsection (1).
(5) After the power of attorney is filed, any process in any action or proceeding
against the insurer for liability incurred in Saskatchewan may be validly served on
the insurer or its attorney, but nothing in this section renders invalid service in any
other modes in which the insurer may be lawfully served.
1998, c.35, s.8.
Statement of expenses of organization to be submitted with application
38 Upon application for a licence by an insurer hereafter incorporated under any
general or special Act of Saskatchewan, there shall be submitted to the
superintendent a sworn statement setting forth the several sums of money paid in
connection with the incorporation and organization of the insurer, and such
statement shall, in addition, include a list of all unpaid liabilities, if any, in
connection with or arising out of the incorporation and organization.
R.S.S. 1965, c.143, s.38; R.S.S. 1978, c.S-26, s.38.
Organization expenses limited
39 Until the licence is granted, no payments on account of expenses of incorporation
and organization shall be made out of the moneys paid in by shareholders except
reasonable sums for the payment of clerical assistance, legal services, office rental,
advertising, stationery, postage and expense of travel, if any.
R.S.S. 1965, c.143, s.39; R.S.S. 1978, c.S-26, s.39.
Conditions precedent to issue of licence
40 The superintendent shall not issue the licence until he is satisfied that all the
requirements of this Act and of The Companies Act, as to the subscriptions to the
capital stock, the payment of money by shareholders on account of their subscriptions,
the election of directors and other preliminaries have been complied with, and
unless he is satisfied that the expenses of incorporation and organization, including
the commission payable for the sale of the stock of the insurer, are reasonable.
R.S.S. 1965, c.143, s.40; R.S.S. 1978, c.S-26, s.40.
Form of licences
41 The licence shall be in such form as may be determined by the superintendent,
and it shall specify the insurance that may be transacted by the insurer and shall
expire five years after the day on which it is issued.
R.S.S. 1965, c.143, s.41; R.S.S. 1978, c.S-26,
s.41; 1984-85-86, c.82, s.5.
Notice of issue of licence
42 Every insurer on first obtaining a licence shall forthwith give notice thereof in
two successive issues of the Gazette and shall give the like notice when it ceases to
carry on business in Saskatchewan.
R.S.S. 1965, c.143, s.42; R.S.S. 1978, c.S-26, s.42.
SUSPENSION OR CANCELLATION OF LICENCE
Power of superintendent to suspend or cancel licence
43(1) The superintendent may suspend or cancel the licence of an insurer who
fails:
(a) to pay an undisputed claim within sixty days after such claim becomes
due or a disputed claim after final judgment and tender of a valid discharge; or
(b) to make further deposit of approved securities with the minister within
thirty days after being required under this Act to do so.
Same
(2) The superintendent may, upon the suspension or cancellation of the licence of
an insurer by any government in Canada, suspend or cancel the licence of that
insurer under this Act.
R.S.S. 1965, c.143, s.43; R.S.S. 1978, c.S-26, s.43.
Insufficiency of assets to be reported by superintendent
44(1) Where the superintendent finds that the assets of an insurer are insufficient
to justify the continuance of the insurer in business or to provide proper security to
persons effecting insurance with the insurer in Saskatchewan or that the insurer
has failed to comply with any provision of law, or its charter, he shall so report to
the minister.
Suspension or cancellation of licence by Lieutenant Governor in Council
(2) Where the minister, after consideration of the report and after hearing or
giving notice of a hearing to the insurer, and upon any further investigation he
thinks proper, reports to the Lieutenant Governor in Council that he concurs in the
report of the superintendent, the Lieutenant Governor in Council may suspend or
cancel the licence of the insurer.
Issue of limited or conditional licence
(3) Where the superintendent has so reported, the minister or the Lieutenant
Governor in Council may direct the issue of such modified, limited or conditional
licence as is deemed necessary for the protection of persons in Saskatchewan who
have effected or effect contracts of insurance with the insurer.
R.S.S. 1965, c.143, s.44; R.S.S. 1978, c.S-26, s.44.
Transacting insurance in foreign jurisdiction without authority
45 Where the superintendent is satisfied that an insurer licensed under this Act
is transacting insurance in a foreign jurisdiction without being first authorized to
do so under the laws of that foreign jurisdiction, the Lieutenant Governor in
Council may, upon the report of the superintendent, suspend or cancel the licence of
the insurer.
R.S.S. 1965, c.143, s.45; R.S.S. 1978, c.S-26, s.45.
Insurer to notify superintendent of certain actions
45.1 No licenced insurer transacting insurance in a foreign jurisdiction shall fail
to immediately notify the superintendent in writing of:
(a) the suspension, cancellation or amendment of its authority to do business
in any jurisdiction where it carries on business as an insurer; or
(b) the imposition of any terms or conditions on, or the variation or
modification of any terms or conditions imposed on, its authority to do
business in any jurisdiction where it carries on business as an insurer.
1998, c.35, s.9; 2001, c.8, s.19.
Insurer to cease business on suspension or cancellation of licence
46 Upon the suspension or cancellation of the licence of an insurer, the insurer
shall cease to carry on business as an insurer in Saskatchewan except for the
purpose of winding up its affairs in Saskatchewan and complying with this Act, but
nothing in this section prejudicially affects any contract holder or creditor of the
insurer.
R.S.S. 1965, c.143, s.46; R.S.S. 1978, c.S-26, s.46.
Notice
47 The superintendent shall forthwith give notice in the Gazette of the suspension
or cancellation of the licence of the insurer.
R.S.S. 1965, c.143, s.47; R.S.S. 1978, c.S-26, s.47.
Revival of licence
48 Where the licence of an insurer is suspended or cancelled, it may be revived if
the insurer makes good the deposit, or the deficiency, or remedies its default, as the
case may be, to the satisfaction of the minister.
R.S.S. 1965, c.143, s.48; R.S.S. 1978, c.S-26, s.48.
DEPOSITS
Deposit of securities
49(1) Every insurer shall, before receiving a licence under this Act, deposit
approved securities with the minister in the following amounts:
(a) where the insurer undertakes life insurance -- $50,000;
(b) where the insurer undertakes any one or more classes of insurance other
than life:
(i) in Saskatchewan only -- $25,000;
(ii) in Saskatchewan and elsewhere -- $50,000.
Increase of deposit
(2) The superintendent may require, the deposit mentioned in subsection (1) to be
increased, either before or after granting the licence, to such amount as he
considers necessary for the security of persons affecting insurance with the insurer
in Saskatchewan.
Exceptions
(3) This section does not apply to:
(a) a mutual insurance company;
(b) a fraternal society;
(c) a mutual benefit society;
(d) an underwriter or syndicate of underwriters that is a member of the
society known as Lloyd's, incorporated by the Imperial Statute, Lloyd's
Act, 1871;
(e) an insurer registered under the Canadian and British Insurance
Companies Act (Canada) or the Foreign Insurance Companies Act (Canada);
(f) an insurer having made a reciprocal deposit with the government of
another province, where Saskatchewan has been declared a reciprocating
province with respect to that deposit;
(f.1) a member of the Canadian Insurance Exchange, if exempted by the
superintendent;
(g) an insurer or any class of insurers expressly exempted by regulation of
the Lieutenant Governor in Council.
R.S.S. 1965, c.143, s.49; R.S.S. 1978, c.S-26,
s.49; 1986-87-88, c.55, s.6; 1989-90, c.54, s.4.
Value of securities
50(1) The value of the securities shall be estimated at their market value, not
exceeding par, at the time they are deposited.
Other than approved securities
(2) Where any other than approved securities are offered as a deposit, the
minister may accept them on such valuation and on such conditions as he deems
proper.
Decline in value
(3) Where the market value of any securities that are deposited by an insurer
declines below that at which they were deposited, the minister may notify the
insurer to make such further deposit as is necessary to ensure that the accepted
value of all securities deposited equals the amount that is required by this Act to be
deposited.
Title to securities
(4) The property in any stock, bonds or debentures deposited with the minister
under this Act shall be vested in the minister by virtue of his office without any
formal transfer while the stock, bonds or debentures form the whole or any part of
the deposit required by this Act.
Interest on securities
(5) While the conditions of this Act are satisfied and no notice of any final
judgment against the insurer or order for its winding up or for the distribution of its
assets or for administration of its deposit is given to the minister, the insurer shall
be entitled to receive the interest upon the securities forming the deposit.
R.S.S. 1965, c.143, s.50; R.S.S. 1978, c.S-26, s.50.
Substituting securities
51 Where an insurer desires to substitute other approved securities for securities
deposited, the minister may permit the substitution to be made.
R.S.S. 1965, c.143, s.51; R.S.S. 1978, c.S-26, s.51.
Withdrawal of excess deposit
52 Where at any time it appears that an insurer has on deposit with the minister
securities in excess of the prescribed amount, the Lieutenant Governor in Council,
upon being satisfied that holders of contracts with the insurer in Saskatchewan will
not be prejudiced thereby, and upon giving notice in the Gazette and taking such
other precautions as he deems expedient, may authorize the withdrawal of the
amount of the excess or a portion thereof; or he may authorize such a withdrawal
without giving notice.
R.S.S. 1965, c.143, s.52; R.S.S. 1978, c.S-26, s.52.
Withdrawal of deposit
53(1) An insurer having made a deposit may withdraw it, with the sanction of the
minister, if the insurer has made a reciprocal deposit with the government of
another province, where Saskatchewan has been declared a reciprocating province
with respect to that deposit, or is registered under the Canadian and British
Insurance Companies Act (Canada) or the Foreign Insurance Companies Act
(Canada).
Application for withdrawal on ceasing to transact business
(2) An insurer that has ceased to transact business in Saskatchewan and desires
to obtain a return of its deposit may give written notice to that effect to the
superintendent, and shall publish in the Gazette a notice that it has applied to the
Lieutenant Governor in Council for the return of its deposit, calling upon all
claimants, contingent or actual, who object to the return, to file their objections with
the superintendent on or before a day named in the notice, which shall not be less
than three months after the first publication of it.
List of contracts
(3) Upon giving the notice to the superintendent, the insurer shall file with him a
list of all its outstanding contracts of insurance, including contracts in respect of
which claims have accrued.
Return of deposit
(4) After the day named in the notice, if the minister is satisfied that the insurer
has obtained a discharge of all such outstanding contracts, the Lieutenant
Governor in Council may direct that the deposit be returned.
Return in instalments
(5) If the minister is not satisfied that all such contracts have been discharged,
the Lieutenant Governor in Council may direct that a sufficient amount be retained
to meet the contracts unprovided for and that the remainder of the deposit be
returned, and thereafter from time to time as such contracts lapse or proof is
adduced that they have been satisfied the Lieutenant Governor in Council may
direct a further return of the deposit.
Notice in case of reciprocal deposits
(6) Where the deposit is, by virtue of reciprocal legislation in another province,
held for the benefit of policy holders resident in such province, the notice mentioned
in subsection (2) shall also be given to the Superintendent of Insurance or minister
in charge of the Department of Insurance in that province and shall be published in
the official gazette of that province.
R.S.S. 1965, c.143, s.53; R.S.S. 1978, c.S-26, s.53.
Transfer of deposit on purchase or reinsurance
54(1) Where a licensed insurer, hereinafter called the continuing insurer, has, by
purchase or otherwise, acquired the assets and assumed the liabilities, within
Saskatchewan, of another licensed insurer, herinafter called the discontinuing
insurer, or reinsured all the contracts of a discontinuing insurer outstanding
within Saskatchewan, the Lieutenant Governor in Council may, upon the application
of the continuing insurer, and upon the report of the superintendent, direct the
transfer of the deposit held by the minister under this Act in the name of the
discontinuing insurer to the continuing insurer.
Effect of
(2) In such case the deposit so transferred shall thereafter be treated and dealt
with under this Act in the same manner as though it had been originally deposited
by the continuing insurer.
R.S.S. 1965, c.143, s.54; R.S.S. 1978, c.S-26, s.54.
RECIPROCAL DEPOSITS
Interpretation of certain sections
55(1) In sections 56 to 80 and in sections 403 to 415:
(a) "insured person" means a person who enters into a subsisting contract
of insurance with an insurer and includes:
(i) every person insured by a contract whether named or not; and
(ii) every person to whom or for whose benefit all or part of the proceeds
of a contract of insurance are payable; and
(iii) every person entitled to have insurance money applied toward
satisfaction of his judgment in accordance with section 228;
(b) "loss" includes the happening of an event or contingency by reason of
which a person becomes entitled to a payment under a contract of insurance of
money other than a refund of unearned premiums;
(c) "reciprocal deposit" means a deposit of an insurer held pursuant to
section 56 or 57;
(d) "reciprocating province" means a province that has been declared to
be a reciprocating province pursuant to clause (a) of subsection (1) of
section 56 or subsection (1) of section 57 with respect to the deposit of a
particular insurer;
(e) "Saskatchewan contract" means a subsisting contract of insurance
that:
(i) has for its subject:
(A) property that at the time of the making of the contract is in
Saskatchewan or is in transit to or from Saskatchewan; or
(B) the life, safety, fidelity or insurable interest of a person who at
the time of the making of the contract is resident in or has its head
office in Saskatchewan; or
(ii) makes provision for payment thereunder primarily to a resident of
Saskatchewan or to an incorporated company that has its head office in
Saskatchewan.
Application of sections 55 to 57
(2) This section and sections 56 and 57 apply notwithstanding that the insurer is
or may become licensed in one province for classes of insurance different from those
for which it is or may become licensed in another province.
Sections 56 and 57 prevail
(3) The provisions of sections 56 and 57 prevail over any other provisions of this
Act to the extent that they are inconsistent with such other provisions.
R.S.S. 1965, c.143, s.55; R.S.S. 1978, c.S-26, s.55.
Sole deposit of insurer in Saskatchewan
56(1) Where an insurer has its head office for Canada in Saskatchewan and
makes a deposit under this Act for the purposes of this section, by virtue whereof
the insurer will not be required to make a deposit in another province in which it is
or may become licensed to undertake insurance, the following provisions shall have
effect, namely:
(a) the amount of the deposit to be made and maintained by the insurer shall
be fixed by order of the Lieutenant Governor in Council, and the other shall
declare what provinces are reciprocating provinces with respect to that
insurer's deposit;
(b) the deposit shall be held and administered as security pari passu for the
Saskatchewan contracts of the insurer and for its contracts in any reciprocating
province;
(c) the minister shall, upon the request of the official who issues or proposes
to issue a licence to the insurer in another province, certify under his hand
that the deposit is held in manner provided by clause (b), and the
superintendent shall forward the certificate to that official and a copy to the
Superintendent of Insurance in each province;
(d) where, with respect to the outstanding contracts of the insurer, it
appears to the superintendent from the annual report of such insurer or any
examination of the affairs of the insurer that a further deposit for the
purposes of this section is necessary, or where it appears to the Superintendent
of Insurance for another province in which the insurer is licensed from any
annual report made to him by the insurer or any examination of the affairs of
the insurer that a further deposit for the purposes of this section is necessary,
and such superintendent requests the superintendent to obtain a further
deposit, the insurer shall forthwith deposit such further sum as the Lieutenant
Governor in Council may fix;
(e) if the insurer obtains a Dominion licence extending to this or another
province, the minister may, on the request of the insurer, authorize the
superintendent to deliver to the insurer or to transfer to the Minister of
Finance for Canada the whole or part of such deposit as the minister thinks
fit, having regard to the extent of the Dominion licence, and the superintendent
forthwith shall give notice of the delivery or transfer to the Superintendent of
Insurance of each reciprocating province;
(f) where the licence of the insurer is suspended or cancelled under this Act,
the superintendent shall give immediate notice to the Superintendent of
Insurance in each province;
(g) where the insurer ceases to carry on insurance business in Canada, and
its deposit may be withdrawn under this Act, the superintendent shall notify
the Superintendent of Insurance in each province, and all claims and
liabilities arising in any such province shall be verified by the Superintendent
of Insurance there and a statement thereof communicated to the
superintendent;
(h) where the insurer ceases to transact business in or its licence is
suspended or cancelled in a reciprocating province and notice thereof is given
to the superintendent, the minister and the superintendent, upon the request
of the superintendent in the reciprocating province, may take any action that
could be taken if the insurer were ceasing to transact business, or its licence
were suspended or cancelled, in Saskatchewan.
Change in head office
(2) The insurer shall not change the situation of its head office to another province
without the consent of the minister, but where the minister so consents he may
authorize the superintendent to transfer the insurer's deposit to the minister
responsible for the deposit in that province, or to the insurer, as the minister in that
province requests, and the superintendent forthwith shall give notice of any change
or transfer to the Superintendent of Insurance of each reciprocating province.
R.S.S. 1965, c.143, s.56; R.S.S. 1978, c.S-26, s.56.
Sole deposit of insurer in another province
57(1) Where an insurer has its head office for Canada in another province and
there makes a deposit of such amount as may be fixed by the proper authority in
that province, and under the laws of that province the deposit is held as security
pari passu for its Saskatchewan contracts and its contracts in every reciprocating
province, the minister, upon receipt of a certified copy of an order of the Lieutenant
Governor in Council of the province in which the deposit is made fixing the amount
of the deposit and declaring that Saskatchewan is a reciprocating province with
respect to that insurer's deposit, and upon receipt of the consent of the insurer to its
deposit being so held, shall exempt the insurer from the provisions of this Act
requiring it to make and maintain a deposit.
Notice required on insurer ceasing to do business, etc.
(2) Where the insurer ceases to transact business in or its licence is suspended or
cancelled in Saskatchewan, the superintendent shall immediately give notice
thereof to the superintendent of the province in which the reciprocal deposit is held
and to the superintendent of each other reciprocating province.
Action by superintendent on receipt of notice of administration in another province
(3) Where an order is made for the administration of a reciprocal deposit held in
another province pursuant to subsection (1), the superintendent, as soon as is
reasonably possible after receipt of notice of the termination date fixed by the
receiver, shall proceed pursuant to section 67 to give the notice required by that
section to the insured persons under the Saskatchewan contracts.
Transfer of deposit
(4) Where a licensed insurer is exempted under this section, the minister shall
transfer its deposit under this Act to the minister responsible for the deposit in the
province in which the insurer has its head office and which will hold the deposit, or
to the insurer, as that minister requests.
R.S.S. 1965, c.143, s.57; R.S.S. 1978, c.S-26, s.57.
Use of deposit for reinsurance
58 At any time before the granting of an order for the administration of a
reciprocal deposit, the Superintendent of Insurance of each reciprocating province
may enter into an agreement to use all or any part of the securities deposited for the
purpose of reinsuring all or any part of the risks of the insurer outstanding in all or
any of those provinces.
R.S.S. 1965, c.143, s.58; R.S.S. 1978, c.S-26, s.58.
Power to apply sections 55 to 57 to other provinces
59(1) The Lieutenant Governor in Council may, on being satisfied that any other
province has enacted provisions identical with or substantially the same as
sections 55 to 57, direct that those sections shall apply to that province, and may
from time to time revoke or alter any such order.
(2) Every order in council under this section shall be published in the Gazette, and
a copy shall be sent to the Superintendent of Insurance in each province.
R.S.S. 1965, c.143, s.59; R.S.S. 1978, c.S-26, s.59.
ADMINISTRATION OF DEPOSIT
Use of deposit for reinsurance
60(1) Subject to subsection (2) but otherwise notwithstanding anything hereinafter
contained, at any time before the granting of an order for administration of a
deposit and upon the recommendation of the superintendent certifying that such
action is necessary or desirable for the protection of policy holders entitled to share
in the proceeds of the deposit, the minister may use all or any part of the deposit for
the purpose of reinsuring all or any part of the Saskatchewan contracts.
Consents required in case of reciprocal deposit
(2) A reciprocal deposit may be used for purposes of reinsurance in the manner
and to the extent agreed upon by the Superintendents of Insurance of the
reciprocating provinces and not otherwise.
R.S.S. 1965, c.143, s.60; R.S.S. 1978, c.S-26, s.60.
Deposit subject to administration
61(1) The deposit made by an insurer under this Act shall be subject to
administration in the manner hereinafter provided.
Persons for whom deposit administered
(2) Subject to sections 56 and 57, the deposit shall be held and administered for
the benefit of all insured persons under Saskatchewan contracts and they shall be
entitled to share in the proceeds of the deposit.
Claims entitling insured to share in deposit
(3) An insured person under a Saskatchewan contract shall be entitled to share in
the proceeds of the deposit in respect of:
(a) a claim for a loss that is covered by the contract and that occurred before
the termination date fixed pursuant to section 66 or section 411; or
(b) a claim for refund of unearned premiums except in the case of life
insurance; or
(c) a claim for payment of the legal reserve in respect of the contract in the
case of life insurance; or
(d) claims under both clauses (a) and (b).
R.S.S. 1965, c.143, s.61; R.S.S. 1978, c.S-26, s.61.
Application for administration of deposit
62(1) An application for administration of a deposit shall be made by originating
notice of motion to a judge of the Court of Queen's Bench.
Where application to be made
(2) The application shall be made at the judicial centre:
(a) nearest to which the head office of the insurer is situated; or
(b) nearest to which the chief office of the insurer in Saskatchewan is
situated if its head office is outside Saskatchewan.
R.S.S. 1965, c.143, s.62; R.S.S. 1978, c.S-26, s.62.
Application by superintendent
63(1) With the approval of the minister, the superintendent may make application
for administration at any time when, in his opinion, it is necessary or desirable for
the protection of the insured persons entitled to share in the proceeds of the deposit.
Application in case of reciprocal deposit
(2) In the case of a reciprocal deposit held in Saskatchewan, the Superintendent of
Insurance of any reciprocating province may make application for administration of
the deposit.
Application by insured person
(3) An insured person entitled to share in the proceeds of a deposit may make
application for administration of the deposit upon producing evidence:
(a) that he has served the Superintendent of Insurance for Saskatchewan
with a notice in writing of his intention to make the application if the
superintendent or the Superintendent of Insurance of any reciprocating
province does not apply; and
(b) that sixty days have elapsed since the service of the notice and that no
application for administration of the deposit has been made.
Duty of superintendent in case of reciprocal deposit
(4) In the case of a reciprocal deposit, if the superintendent is served with a notice
as provided in subsection (3), he shall forthwith notify the Superintendent of
Insurance of each reciprocating province that he has been so served.
R.S.S. 1965, c.143, s.63; R.S.S. 1978, c.S-26, s.63.
Service of notice of motion
64(1) The applicant for administration of the deposit shall serve the originating
notice of motion, at least ten days prior to the date specified in the notice for the
making of the application:
(a) upon the insurer or, where the insurer is in liquidation, upon the
liquidator of the insurer; and
(b) upon the Superintendent of Insurance for Saskatchewan; and
(c) in the case of a reciprocal deposit, upon the Superintendent of Insurance
of each reciprocating province.
When applicant to be entitled to administration order
(2) An applicant for administration shall be entitled to an order for administration
upon proof:
(a) that the licence of the insurer has been cancelled, and that its assets are
insufficient to discharge its outstanding liabilities; or
(b) that an order has been made for the winding up of the insurer; or
(c) that the insurer has failed to pay:
(i) an undisputed claim within sixty days after it has been admitted; or
(ii) a disputed claim after final judgment and tender of a valid
discharge;
if the claim arose under a contract of insurance in respect of which the deposit
is subject to administration.
R.S.S. 1965, c.143, s.64; R.S.S. 1978, c.S-26, s.64.
Appointment of receiver
65(1) Upon granting an order for administration the court shall appoint a receiver
to administer the deposit.
Liquidator as receiver of deposit
(2) Where a provincial liquidator or a liquidator has been appointed under this
Act or The Companies Winding Up Act, or a liquidator has been appointed under
the Winding-up Act (Canada) to wind up a company that has made a deposit under
this Act, the court may appoint the provisional liquidator or the liquidator as the
receiver to administer the deposit.
Administration of deposit by liquidator
(3) Thereupon the provisional liquidator or the liquidator shall administer the
deposit for the benefit of the insured persons entitled to share in the proceeds
thereof in accordance with the provisions of and the priorities set out in this Act.
R.S.S. 1965, c.143, s.65; R.S.S. 1978, c.S-26, s.65.
Termination date fixed by receiver
66(1) Where a termination date has not been fixed by a provisional liquidator or a
liquidator pursuant to section 411, forthwith after his appointment the receiver
shall fix a termination date for the sub