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Dairy Livestock Insurance Plan

made under Section 6 of the

Crop and Livestock Insurance Act

R.S.N.S. 1989, c. 113

O.I.C. 2002-407 (September 13, 2002, effective April 1, 2000), N.S. Reg. 114/2002

as amended by O.I.C. 2011-145 (April 19, 2011), N.S. Reg. 172/2011


Citation

1     These regulations may be cited as the Dairy Livestock Insurance Plan.


Purpose

2     The purpose of this plan is to provide for

 

                (a)    insurance against a loss of livestock resulting from one or more of the perils designated in subsection 4(1); and

 

                (b)    a benefit for loss of income when, as a result of one or more of the perils designated in subsection 4(2), gross monthly income from the sale of milk falls below 50% of the average gross monthly income calculated in accordance with subsection 14(2).


Interpretation

3     In this plan,

 

                (a)    “dairy building” means any building owned by an insured person that is used to house livestock insured under this plan;

 

                (b)    “designated perils” means the perils designated pursuant to Section 4 for the purpose of this plan;

 

                (c)    “insurable livestock” means any animal designated for insurance purposes pursuant to Section 10;

 

                (d)    “insurance year” means the 12-month period commencing on the date that a contract of insurance is issued by the Commission;

 

                (e)    “livestock” means dairy animals owned by Nova Scotia farmers and housed in the Province;

 

                (f)    “loss of income benefit” means a benefit paid to an insured person in accordance with Sections 14 to 17;

 

                (g)    “Veterinary Pathology Laboratory” means the Veterinary Pathology Laboratory of the Nova Scotia Department of Agriculture in Truro, Nova Scotia.

[Note: the reference to the Department of Agriculture and Fisheries has been updated in accordance with Order in Council 2006-121 under the Public Service Act, R.S.N.S. 1989, c. 376, effective February 24, 2006.]

 

Designation of perils

4     (1)    The following are designated perils for the purpose of insurance against a loss of livestock from disease:

 

                (a)    reportable diseases that are designated pursuant to the Health of Animals Act (Canada), except bovine spongiform encephalopathy (“BSE”) and foot and mouth disease (“FMD”);

Clause 4(1)(a) amended: O.I.C. 2003-555, N.S. Reg. 226/2003.

                (b)    pasteurella pneumonia (shipping fever); and

                (c)    infectious bovine rhinotracheitis (respiratory form).

 

       (2)    All of the following are designated perils for the purpose of the loss of income benefit:

 

                (a)    the diseases specified in subsection (1);

                (b)    fire

                (c)    collapse of a dairy building as a result of ice or snow;

(d)wind.

Subsection 4(2) replaced: O.I.C. 2011-145, N.S. Reg. 172/2011.


Application

5     (1)    An application for a contract of insurance shall be

 

                (a)    on a Contract of Dairy Livestock Insurance Application and Renewal Form in Form H of the Crop and Livestock Insurance Forms Regulations; and

[Note: the Crop and Livestock Insurance Forms Regulations were repealed by N.S. Reg. 125/2006, effective July 24, 2006.]

 

                (b)    accompanied by the total premium.

 

       (2)    A completed application is not binding upon either party until a contract of insurance is issued in respect of the application.

 

       (3)    The Commission may require an applicant to comply with any regulations made pursuant to the Animal Health and Protection Act and the Health of Animals Act (Canada) before issuing a contract of insurance.

Contract of insurance

6     For the purpose of this plan, the contract of insurance for loss of livestock from disease and for loss of income shall comprise

 

                (a)    a contract of insurance;

                (b)    a completed application filed pursuant to subsection 5(1); and

                (c)    a copy of this plan,

 

and if a document referred to in clause (a), (b) or (c) is subsequently amended while the contract of insurance is still in force, a copy of the amendment shall be delivered to the insured person.


Duration of contract

7     A contract of insurance shall be in force during the insurance year to which it applies.


Limitation of contract

8     A claim for indemnity shall be limited to the extent of the assets held by the Commission and identified as the Livestock Insurance Fund Balance.


Premium

9     (1)    The premium charged by the Commission shall apply to 12 months of coverage for loss of livestock from disease and for loss of income.

 

       (2)    The base premium rate for dairy cattle shall be 0.25% of the established price selected pursuant to Section 11.

 

       (3)    The base premium rate shall be adjusted by giving a discount when indemnity is less than total premium paid, and adjustments will be calculated using the following formula:


(LR-1) x (n÷(3+n))

 

where “LR” equals total indemnity divided by total premiums and “n” equals the number of years insured in the plan.

 

       (4)    Despite subsection (3) the maximum discount shall be 70%.

 

       (5)    Despite subsections (2), (3) and (4), the minimum premium payable by an insured person in any insurance year shall be $25.00.


Coverage of loss of livestock from disease

10   (1)    All of the dairy cows and heifers one year of age and older that are owned by an insured person shall be offered for insurance coverage.

 

       (2)    Heifers 6 to 11 months of age may be insured if an insured person requests coverage for them.

 

       (3)    Calves may be insured if an insured person requests coverage for them.

 

       (4)    Where an insured person increases the number of animals that they own during the period that a contract of insurance is in force, the insured person shall purchase coverage for the animals not already insured.


Established prices

11   (1)    The established price options for dairy cows and heifers insured pursuant to subsections 10(1) and 10(2) are

 

                (a)    $400.00;

                (b)    $600.00;

                (c)    $800.00;

                (d)    $1000.00;

                (e)    $1200.00;

                (f)    $1400.00;

                (g)    $1600.00;

                (h)    $1800.00; and

                (i)     $2000.00.

 

       (2)    The established price options for calves insured pursuant to subsection 10(3) are

 

                (a)    $200.00;

                (b)    $400.00;

                (c)    $600.00; and

                (d)    $800.00.

 

       (3)    An insured person shall select one of the herd price options listed in subsection (1), and, if applicable, one of the herd price options listed in subsection (2) as the established prices for the purpose of calculating premium and the indemnity per animal.


Notice of loss of livestock from disease

12   (1)    An insured person shall submit a notice of claim for loss of livestock from disease to the Commission within 48 hours of the death of an animal.

 

       (2)    A notice pursuant to subsection (1) shall be accompanied by a written statement from a veterinarian confirming the cause of death of the animal.

 

       (3)    Upon the death of an animal for which an insured person is submitting a claim, the insured person shall

 

                (a)    if the attending veterinarian performs a necropsy on the animal, ensure that the necessary tissue specimens and blood samples are forwarded to the Veterinary Pathology Laboratory; or

 

                (b)    if a necropsy is not performed on the animal, deliver the animal’s carcass to the Veterinary Pathology Laboratory,

 

to assist in determining the cause of the death of the animal.

 

       (4)    Despite subsection (3), in the event of an outbreak of pasteurella pneumonia (shipping fever) or respiratory infectious bovine rhinotracheitis,

 

                (a)    the first 3 animals to die shall be necropsied, or the carcasses delivered to the Veterinary Pathology Laboratory; and

 

                (b)    if more than 3 animals die, the insured person shall contact the Commission to determine whether additional post-mortems are required.

 

       (5)    Animals that do not recover from a designated peril shall not be disposed of or euthanized until the attending veterinarian has received permission from the Commission.


Evaluation of claim for loss of livestock from disease

13   (1)    The maximum indemnity for which the Commission is liable for loss of livestock from disease under a contract of insurance shall be the insured value of that livestock less payments received

 

                (a)    pursuant to the Health of Animals Act (Canada);

 

                (b)    for salvage;

 

                (c)    from any other agency.

 

       (2)    The Commission is not responsible for transportation costs for salvage or for costs to support a claim.

 

       (3)    Compensation payable shall be the lesser of the established price selected pursuant to Section 11 or market value at the time of the loss.

 

       (4)    The Commission is not responsible for the payment of a claim for animals that are sick as a result of pasteurella pneumonia (shipping fever) or infectious bovine rhinotracheitis (respiratory form) and that have remained in the herd 60 or more days after diagnosis by a veterinarian.


Extent of coverage under loss of income benefit

14   (1)    For the purpose of the loss of income benefit, an applicant’s maximum insurable income shall be 50% of the applicant’s average gross monthly income calculated pursuant to subsection (2).

 

       (2)    The average gross monthly income shall be

 

                (a)    stated on the application for insurance and shall be based on the applicant’s monthly receipts from the sale of milk over the 12-month period prior to a loss;

 

                (b)    pro-rated to reflect any reduction in the applicant’s quota holding at the time a claim is made compared to the quota holding at the time of the application.

 

       (3)    The maximum period of payments shall be 4 months when the insured person continues in business.


Notice of loss of income

15   (1)    An insured person shall submit a notice of claim for loss of income to the Commission within 10 days after receipt of the first monthly payment of income from the dairy that is less than 50% of their average gross monthly income calculated pursuant to subsection 14(2).

 

       (2)    The notice referred to in subsection (1) shall include the amount of the actual monthly income received for the month in respect of which the notice is being filed.


Evaluation of claim for loss of income benefit

16   (1)    The Commission shall determine the reduction in income each month by subtracting the actual monthly payment received from the sale of milk and the value of any compensation from the lease or rental of quota or other such contractual arrangements that provide for the sale of milk for the month, from the maximum insurable income described in subsection 14(1).

 

       (2)    The maximum amount payable by the Commission, in accordance with subsection 14(1), is 50% of the average gross monthly income as calculated pursuant to subsection 14(2).


Claim payable under loss of income benefit

17   (1)    The amount of the claim and the period of time in which it is payable shall be determined during the year in which the insurance is in effect.

 

       (2)    Where an insured person suffers a loss of income for a period in excess of 4 months, the insured person may select the period in which payment may be made.


Arbitration

18   Where the Commission and an insured person have failed to resolve any dispute arising out of the adjustment of loss under a contract of insurance, and the requirements of the regulations made under the Crop and Livestock Insurance Act respecting the filing of proof of loss forms have been complied with, and either party wishes the dispute determined by arbitration, it shall be the responsibility of that party to notify the other party in writing within 90 days after the end of the insurance year in which the loss occurred, that the dispute be determined in accordance with the requirements of the Arbitration Proceedings Regulations.