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Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
An Act to Amend the Insurance Act
 
Legislature :
54
Session :
5
Bill No. :
54
Member :
Hon. Green
First Reading :
2003-3-28
Second Reading :
2003-4-1
Committee of the Whole :
2003-4-4
Amended :
Third Reading :
2003-4-8
Royal Assent :
2003-4-11
Download PDF :
  Bill 54         
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Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                              Section 119 of the Insurance Act, chapter I-12 of the Revised Statutes, 1973, is repealed.



2                           The Act is amended by adding after section 229 the following:



229.1               An insurer shall not decline to issue, refuse to renew, or terminate a contract or refuse to provide or continue any coverage or endorsement on any ground set out in the regulations.



3                           The Act is amended by adding after section 265.2 the following:



265.21(1)    In this section "soft tissue injury" and "minor personal injury" shall be as prescribed and defined in the regulations.



265.21(2)    In an action for damages arising out of an accident, the amount recoverable as damages for the non-pecuniary loss of the plaintiff for soft tissue injury shall not exceed the amount set out in the regulations.



265.21(3)    In an action for damages arising out of an accident, the amount recoverable as damages for the non-pecuniary loss of the plaintiff for minor personal injury shall not exceed the amount set out in the regulations.



265.21(4)    This section applies only to accidents occurring on or after the commencement of this section.



4                              Section 265.4 of the Act is amended



(a)               in subsection (1)



(i)         by striking out "and" at the end of paragraph (a);



(ii)       by adding after paragraph (a) the following:



(a.1)          all payments that the plaintiff received for loss of earning capacity during that period under a policy of disability insurance, and



(iii)    in paragraph (b) by adding ", whether or not the plaintiff's credits under that plan can be characterized as a capital asset" after "employment";



(b)               in subsection (3) in the portion preceding paragraph (a) by adding "or policy of disability insurance," after "plan".



5                              Subsection 267.2(1) of the Act is amended by adding "at least once every 12 months from the date of last filing" after "insurance".



6                              Subsection 267.5 (3) of the Act is amended by adding ", or unless the rates are the same rates as filed within the past 12 months" after "may do so".



7                           The Act is amended by adding after section 267.5 the following



267.51(1)    An insurer shall appear before the Board where the insurer



(a)               files rates more than twice in a period of 12 months, or



(b)               files rates where the average rate increase is more than 3% greater than the rates charged by it in the 12 months before the date on which it proposes to begin to charge the rates.



267.51(2)    An insurer shall not charge the proposed rates referred to in subsection (1) unless the Board notifies the insurer that the insurer may do so.



8                              Subsection 267.9(1) of the Act is amended



(a)               by adding after paragraph (a) the following:



(a.1)                      prescribing grounds for which an insurer cannot, in circumstances specified by the regulations, decline to issue, refuse to renew, or terminate a contract of automobile insurance or refuse to provide or continue any coverage or endorsement in respect of a contract of automobile insurance;



(b)               by adding after paragraph (f.2) the following:



(f.3)                      defining "soft tissue injury" and "minor personal injury" for the purposes of section 265.21;



(f.4)                      prescribing and defining categories of soft tissue injury;



(f.5)                      prescribing and defining categories of minor personal injury;



(f.6)                      prescribing amounts which damages for non-pecuniary loss for soft tissue injury shall not exceed;



(f.7)                      prescribing amounts which damages for non-pecuniary loss for minor personal injury shall not exceed;



(f.8)                      prescribing rules or guidelines for interpreting and applying regulations made under paragraphs (f.4) to (f.7) or any provision of those regulations;



9                              Order in Council 1970-162 is revoked.



10                              Sections 2, 3 and 8 of this Act come into force on a day or days to be fixed by proclamation.





EXPLANATORY NOTES



Section 1



The existing provision is as follows:



119(1)            No insurer authorized to transact the business of automobile insurance in the Province, shall fix or make any rate or schedule of rates, or charge a rate for automobile insurance to any group of persons by reason of the group being engaged in any trade, calling, profession or occupation or by reason of membership in any guild, union, society, club or association, or by reason of common employment or by reason of common occupancy of the same building or group of buildings, or for any other reason that would result in a lower cost to the individual in the group than the individual would have had to pay if insured individually.



119(2)            This section does not apply to a contract of automobile insurance in existence at the coming into force of this section, during the term of such contract, but applies to every renewal of any such contract.



Section 2



New provision.



Section 3



New provisions.



Section 4



(a)(i)         The existing provision is as follows:



265.4(1)       In an action for damages arising out of an accident, the amount recoverable by the plaintiff as damages for loss of income between the date of the accident and the date of the judgment shall, subject to subsection (4), be reduced by



(a)               all payments that the plaintiff received for loss of income during that period under an enactment of any jurisdiction or under an income continuation benefit plan, and



(a)(ii)       New provision.



(a)(iii)      The existing provision is as follows:



265.4(1)       In an action for damages arising out of an accident, the amount recoverable by the plaintiff as damages for loss of income between the date of the accident and the date of the judgment shall, subject to subsection (4), be reduced by . . . .



(b)               all payments that the plaintiff received during that period under a sick leave plan arising by reason of the plaintiff's occupation or employment.



(b)               The existing provision is as follows:



265.4(3) Notwithstanding any enactment or agreement or the terms of any plan but subject to subsection (4),



Section 5



The existing provision is as follows:



267.2(1)       Every insurer shall file with the Board the rates it proposes to charge for automobile insurance.



Section 6



The existing provision is as follows:



267.5(3)                              Where, within thirty days after an insurer files rates in accordance with section 267.2, the Board notifies the insurer that it intends to investigate those rates under this section, the insurer shall not charge those rates unless the Board notifies the insurer that the insurer may do so.



Section 7



New provisions.



Section 8



(a)               New provision.



(b)               New provisions.



Section 9



Revocation consequential on the repeal of section 121(1) of the Act by S.N.B. 1989, c. 17, s. 2.



Section 10



Commencement date.

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Legend
* Private Bill
** Bill referred to Standing Committee on Law Amendments
+ Private Member's Public Bill
++ Motion for second reading defeated
+++ Debate at second reading adjourned
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