The Government of Saskatchewan has given its first reading to Bill 177: The Insurance Act. The new legislation will replace The Saskatchewan Insurance Act, which has not been revised substantially in several decades. Bill 177 aims to modernize the regulation of the insurance industry in the Province of Saskatchewan, improve consumer protection measures and increase harmonization with the insurance legislation of the other western provinces. The full text of Bill 177 can be viewed here.
The following excerpt from a Government of Saskatchewan press release provides more detail concerning the proposed legislation:
““A lot has changed in the industry since revisions were last made to the Act, especially when it comes to technology,” Justice Minister and Attorney General Gordon Wyant said. “The new Act will give the insurance sector the flexibility it needs to evolve in a rapidly changing environment, strengthen consumer protection, and move toward harmonizing insurance legislation with Alberta and BC.”
Changes proposed in The Insurance Act include:
- Better protection for consumers through market conduct standards, which identify unfair practices;
- Streamlining the appeal process;
- Restructuring the Saskatchewan Insurance Councils and allowing them to conduct audits and investigations;
- Requiring insurance companies to recommend and screen those applying to be intermediaries as well as supervise them once approved;
- Updating licensing categories and requirements including licensing employees that sell insurance as insurer’s representatives, which requires the same level of training as insurance agents;
- Permitting insurance agents to adjust insurance claims to a prescribed amount; and
- Requiring insurers to point to specific clauses in a policy where there are limits on the amount payable.
Work to develop the new Act involved interprovincial comparisons and review of other provincial and national projects on insurance and financial services, but the model used in Alberta was deemed to best fit Saskatchewan’s needs. Alberta’s legislation is similar to that in BC, meaning Saskatchewan will share similar insurance regulation with all provinces in the New West Partnership Trade Agreement.
A number of industry associations were consulted, including the Insurance Brokers Association of Saskatchewan and the Saskatchewan Insurance Councils and they have expressed their support for modernization of the Act.”
