This consolidation is unofficial and is for reference only. For the official version of the regulations, consult the original documents on file with the Registry of Regulations, or refer to the Royal Gazette Part II. Regulations are amended frequently. Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with the Registry that are not yet included in this consolidation. Although every effort has been made to ensure the accuracy of this electronic version, the Registry of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting. This electronic version is copyright © 2011, Province of Nova Scotia, all rights reserved. It is for your personal use and may not be copied for the purposes of resale in this or any other form.
Automobile Insurance Underwriting Practices Regulations
made under subsection 159A(2) of the
R.S.N.S. 1989, c. 231
O.I.C. 2003-279 (June 24, 2003), N.S. Reg. 125/2003
as amended by O.I.C. 2012-274 (August 20, 2012), N.S. Reg. 162/2012
1 These regulations may be cited as the Automobile Insurance Underwriting Practices Regulations.
2 (1) In these regulations,
(a) “antique vehicle” means a motor vehicle that is registered as an antique vehicle pursuant to the Motor Vehicle Act and the regulations made under it;
(b) “reconstructed vehicle” means a reconstructed vehicle as defined in the Motor Vehicle Act.
(2) Unless the context otherwise requires, words defined in Part VI of the Act have the same meaning when used in these regulations.
3 (1) Subject to subsection (2), these regulations apply to all contracts on and after August 1, 2003.
(2) Section 5 applies to all contracts and applications for automobile insurance on and after July 1, 2003.
Prohibited underwriting practices
4 (1) An insurer must not
(a) refuse to issue a contract;
(b) refuse to renew a contract;
(c) terminate a contract; or
(d) refuse to provide or continue any coverage or endorsement in respect of a contract,
on any of the grounds set out in subsection (2).
(2) The prohibited grounds for refusal or termination for the purposes of subsection (1) are
(a) the age of the insured, the applicant, or any other person who is or would be an insured under the contract;
(b) the sex or marital status of the insured, the applicant, or any other person who is or would be an insured under the contract;
(c) the age of the vehicle that is or would be insured under the contract, unless the vehicle
(i) is an antique vehicle,
(ii) is a reconstructed vehicle, or
(iii) has been substantially modified for enhanced performance;
(d) whether the insured, the applicant, or any other person who is or would be an insured under the contract
(i) is or has been insured by the Facility Association, whether or not the insured, applicant, or other person has completed any minimum period of insurance coverage previously required by the Facility Association,
(ii) has been declined insurance or refused a renewal of insurance by an insurer,
(iii) has claimed under a policy of automobile insurance as a result of an accident for which the insured, applicant, or other person was not at fault,
(iv) has an unsatisfactory claims record, if the claims record includes any claim resulting from an accident for which the insured, applicant, or other person was not at fault,
(v) failed to make any payment to an insurer, other than the first payment of a periodic payment plan, unless the payment was made more than 30 days after the date on which it was due,
(vi) had a lapse in coverage under a contract of automobile insurance for less than 24 months, unless the lapse resulted directly or indirectly from the suspension of the driver’s license of the insured, applicant or other person,
(vii) possesses a characteristic that is unrelated to the underwriting risk that is or would be assumed under the contract,
(viii) has made an inquiry about coverage under a contract that did not result in a claim for payment or indemnification under that contract,
Subclause 4(2)(d)(viii) added: O.I.C. 2012-274, N.S. Reg. 162/2012.
(ix) has made a notification of an incident that did not result in a claim for payment or indemnification under a contract.
Subclause 4(2)(d)(ix) added: O.I.C. 2012-274, N.S. Reg. 162/2012.
5 (1) An insurer that
(a) refuses to issue a contract;
(b) refuses to renew a contract;
(c) terminates a contract;
(d) refuses to provide or continue any coverage or endorsement in respect of a contract; or
(e) changes the classification of risk assumed under a contract, if the change results in an increased premium,
must provide the insured or the applicant with notice of the refusal, termination or change, together with clear written reasons that are sufficient to permit the insured or the applicant to determine why the insurer acted as it did without the need to refer to any other information.
(2) An insured or applicant who considers that an insurer has not complied with subsection (1) may refer the matter to the Superintendent.