On May 31, 2022, the Alberta government passed Bill 16: Insurance Amendment Act, 2022. Among other things, the amendments under this Act:
- reduce the current regulatory charge for purchasing unlicensed insurance from 50% of the premium payable for unlicensed insurance to 10%;
- reduce the 50% financial penalty for the late payment of all charges and tax on unlicensed insurance, to 10%; and
- more closely align the Alberta Insurance Act with other Canadian jurisdictions.
The Superintendent of Insurance in Alberta has also recently issued an Interpretation Bulletin 07-2022 on unlicensed insurance in Alberta, which replaces Interpretation Bulletin 02-2017 and provides updated clarification on the requirements for disclosure of unlicensed insurance in accordance with the new amendments to the Alberta Insurance Act.
