BRITISH COLUMBIA AND ALBERTA IMPROVE INSURANCE ACTS

VICTORIA – The British Columbia and Alberta governments have introduced amendments to their insurance laws to enhance consumer protection and increase efficiencies for the insurance industry.

The legislation was introduced in the spirit of the Trade, Investment and Labour Mobility Agreement (TILMA), which is a joint effort between B.C. and Alberta to remove trade barriers between the two provinces. The agreement creates a larger western economic market and the second-largest economic region in Canada.

British Columbia Finance Minister Carole Taylor and Alberta Minister of Finance and Enterprise Iris Evans introduced the harmonized amendments to their provinces’ respective insurance acts, highlighting the importance of enhanced consumer protection measures. These include improved coverage, better access to insurance contract information, and improved dispute resolution mechanisms.

“The B.C. government made a commitment to a regulatory climate that supports our strong and vibrant economy,” said Taylor. “At the same time, it is vital that we protect consumer interests. We have accomplished that balance in this legislation while working together with Alberta to secure a common approach on our shared interests.”

“The Government of Alberta is very excited about the work we are doing with B.C. to reduce barriers between the two provinces, for the benefit of residents and businesses in both jurisdictions,” said Evans. “I look forward to seeing the difference these legislative changes make in the insurance marketplace – both for consumers and insurers. I believe we will see positive change as a result of this co-operative effort.”

In drafting and finalizing the amendments, B.C. and Alberta worked closely together to develop a harmonized approach that will allow businesses to more effectively compete in both jurisdictions. Key elements of the legislation include the following:

lengthening the limitation period in which legal claims against insurance companies can be made, to two years from one;
improving dispute resolution and complaint handling processes;
increasing certainty by clarifying the scope of fire coverage;
protecting an “innocent co-insured” who may otherwise be denied coverage due to the wrongdoing of another person;
allowing a person to cancel an insurance contract if they feel their life or health is at risk because there is an insurance policy on their life;
facilitating the use of modern distribution channels such as electronic commerce; and
allowing consumers greater access to documents they may need from the insurer at the time of a claim.

British Columbia has also adopted an Alberta regulation-making authority to give consumers a cooling-off period in which they can rescind their life and health insurance contracts.

British Columbia’s Insurance Act sets out the requirements for insurance contracts, including life, health and general insurance. Alberta’s Insurance Act sets similar requirements for these classes of insurance and for automobile and hail insurance. Alberta’s Insurance Act also provides for market conduct, solvency and other regulatory requirements which are similar to the requirements of B.C.’s Financial Institutions Act.

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Media contact:	Robert Pauliszyn B.C. Ministry of Finance 250 356-2821	Jay O’Neill Alberta Finance 780 427-5364

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