Party Paper: The Effect of Suspension of Insurance

The federal government’s authority is limited to matters of federal incorporation and solvency,1 while provinces and territories have exclusive authority to “legislate with respect to insurance contracts and the market conduct operations of the insurance industry” within the province, as it relates to non-marine insurance.2 This exclusive authority is granted to the provinces by s.92(13) of the Co. [...] Implementation and Operational Issues Arising from the Order and Regulations In addition to the public policy concerns relating to injured parties and innocent victims, consideration should also be given to the practical difficulties of the emergency order, as it relates to the rule of law. [...] 4 Use of Insurance as a Tool for Law Enforcement Pronouncing on the permissibility of property and casualty insurance policies in order to address public order emergencies is both unnecessary and ineffective in light of the existing measures that exist to deter the exploitation of those insurance contracts. [...] The integrity of insurance funds are protected by the principle of fortuity – that the losses covered occur randomly, and do not arise as a result of the deliberate actions of a claimant. [...] In addition, mutual dependency, or the reciprocal duty of utmost good faith that exists in an insurance contract, distinguishes insurance contracts from other commercial transactions.28 Both in the formation and the performance of the insurance contract, the parties to the insurance contract depend on each other to meet a minimum standard of behaviour.29 Recommendations In light of the above, we w.