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     Alberta Regulation 118/2001

     Fair Trading Act

     INTERNET SALES CONTRACT AMENDMENT REGULATION

     Filed:  July 4, 2001

Made by the Minister of Government Services (M.O. C:004/01) on June 27,
2001 pursuant to section 42 of the Fair Trading Act.


1   The Internet Sales Contract Regulation (AR 81/2001) is amended by this
Regulation.


2   Section 6(1)(a) is amended by striking out "5" and substituting "7". 


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     Alberta Regulation 119/2001

     Regional Health Authorities Act

     ELECTION AND APPOINTMENT OF REGIONAL HEALTH
     AUTHORITY MEMBERS AMENDMENT REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 266/2001) on July 11, 2001
pursuant to section 21 of the Regional Health Authorities Act.


1   The Election and Appointment of Regional Health Authority Members
Regulation (AR 57/2001) is amended by this Regulation.


2   Section 1 is repealed and the following is substituted:

Interpretation
     1(1)  In this Regulation,

               (a)  "appointed member" means an appointed member
referred to in section 2(b)(iii);

               (b)  "candidate" means, subject to subsection (2), a
person who has been nominated in an election under this Regulation and a
declared candidate;

               (c)  "declared candidate" means a person who has
declared his or her intention to be a candidate in an election under this
Regulation but has not yet been nominated;

               (d)  "contribution" means any money or real or personal
property that is provided to or for the benefit of a candidate, without
compensation from that candidate or a person on the candidate's behalf;

               (e)  "elected member" means a person who is or is to be
elected as a member of a regional health authority under this Regulation;

               (f)  "election campaign period" means the period that
commences on the date that is 2 months before election day and ends on the
date that is 2 months after election day;

               (g)  "employee organization" means any organization,
other than a trade union, that bargains collectively for any employees in
Alberta, and for the purposes of this section all branches in Alberta of an
employee organization are deemed to be one organization;

               (h)  "Minister" means the Minister of Health and
Wellness;

               (i)  "trade union" means a trade union as defined in the
Labour Relations Code, the Public Service Employee Relations Act or the
Canada Labour Code that holds bargaining rights for employees in Alberta,
and for the purposes of this section all locals in Alberta of a trade union
are deemed to be one trade union.

     (2)  A candidate does not cease to be a candidate for the purposes of
sections 11.1 to 11.8 and section 14.1 of this Regulation or section 118 as
enacted by section 7(21) of this Regulation by virtue only of not having
run in the election.


3   The following is added after section 5:

By-laws and resolutions apply
     5.1   If an elected authority, other than a regional health
authority, that is conducting an election under this Regulation has, in
respect of a concurrent election under the Local Authorities Election Act,
passed

               (a)  a by-law in respect of voting hours under section
46(1.1) of that Act,

               (b)  a resolution in respect of advance votes under
section 73 of that Act,

               (c)  a resolution in respect of voting by incapacitated
electors under section 79 of that Act,

               (d)  a by-law in respect of institutional voting under
section 80 of that Act,

               (e)  a by-law in respect of the taking of votes by
voting machines, vote recorders or automated voting systems under section
84 of that Act, or

               (f)  a by-law under section 161(2) of that Act adopting
a system for conducting an election,

     that resolution or by-law applies in respect of the election under
this Regulation.


4   Section 7(6) is repealed and the following is substituted:

     (6)  Section 1(t) does not apply and the following applies instead:

               (t)  "secretary" means the person who is designated by a
party to an agreement under section 2 or 2.01 of this Act or under section
6 of the Election and Appointment of Regional Health Authority Members
Regulation (AR 57/2001) as secretary for the purposes of the provisions of
this Act or that Regulation that are specified in the agreement;

5   Section 7(12) is amended

     (a)  as to section 21(2) by striking out "and" at the end of clause
(a) and by adding the following after clause (a):

               (a.1)     is resident in the electoral district for which the
person wishes to be nominated, and

     (b)  as to section 21(3) in the words preceding clause (a) by adding
"or (13)" after "subsection (5)";

     (c)  as to section 21(3)(c) by adding ", or is an employee of such
an independent health service provider" after "services";

     (d)  as to section 21(3)(f)(i) and (ii) by striking out "clause (f)"
and substituting "clause (e)";

     (e)  as to section 21(14) by striking out "ceases to be" and
substituting "is disqualified from being".


6   The following is added after section 7(16):

     (16.1)  Section 33 does not apply and the following applies instead:

Death of candidate
          33(1)  If a candidate dies after being nominated, the returning
officer shall cause a notice of the death in a form acceptable to the
returning officer to be posted in a conspicuous location in all of the
relevant voting stations.

          (2)  A ballot cast for a deceased candidate must be treated as
a spoiled ballot.


7   Section 7(21) is repealed and the following is substituted:

     (2)  Section 118 does not apply and the following applies instead:

               Campaign contributions and expenses

               118(1)  The Minister of Health and Wellness may by order
directed to a nominated candidate require the nominated candidate to submit
to the Minister audited statements in a form satisfactory to the Minister
that disclose the campaign contributions received and the candidate's
campaign expenses in respect of the election.

               (2)  The Minister may, in an order under subsection (2)
define "campaign contributions" and "campaign expenses" for the purposes of
the order.

               (3)  For the purposes of disclosing campaign
contributions, the financial statements referred to in subsection (1)

                                   (a)  must show as an aggregate
amount the total contributions of all contributors who contributed $375 or
less in the aggregate during the election campaign period, and 

                                   (b)  must show as  separate
amounts, together with the name and address of the contributor, the total
contributions of each contributor who contributed more than $375 in the
aggregate during the election campaign period.

               (4)  A nominated candidate who receives an order under
this section shall comply with it in accordance with its terms.

8   Section 9 is amended

     (a)  in subsection (1) by striking out "section 21(2) to (4)" and
substituting "section 21(2)(a) and (b), (3) and (4)";

     (b)  in subsection (3) by striking out "ceases to be" and
substituting "is disqualified from being".


9   The following is added after section 11:

     Election Finances

Registration of candidates
     11.1(1)  The returning officer for a health region shall maintain a
register of nominated candidates for each election under this Regulation.

     (2)  The returning officer shall register in the register of
nominated candidates the name of any person who files with the returning
officer a notice that the person has been nominated as a candidate in the
election for the electoral district named in the notice.

     (3)  A notice referred to in subsection (2) must contain

               (a)  the full name and address of the nominated
candidate, and

               (b)  the address of the place or places where records of
the nominated candidate are maintained and of the place to which
communications may be addressed.

     (4)  If there is any change in the information required to be
provided under this section, the nominated candidate shall notify the
returning officer of the change within 30 days and, on receipt of the
notification, the returning officer shall vary the register of nominated
candidates accordingly.

     
Registration of persons to accept contributions
     11.2   A nominated candidate in an election under this Regulation
shall register with the returning officer the names and addresses of all
persons who may accept campaign contributions for the nominated candidate's
campaign.
     

Record of contributions
     11.3(1)  A nominated candidate shall ensure that a record of
contributions is kept that shows, with respect to each contribution
received during the election campaign period,

               (a)  the date the contribution was received and the
amount of it, and 

               (b)  the name and address of the person who made the
contribution.

     (2)  A nominated candidate shall keep a record of all amounts
provided out of the nominated candidate's own funds during an election
campaign period for the purposes of the candidate's campaign.


Prohibited contributions
     11.4(1)  None of the following shall make a contribution to or for
the benefit of a candidate:

               (a)  a person who is normally resident outside of
Alberta;

               (b)  an employee organization other than an employee
organization referred to in section 1(1)(g);

               (c)  a trade union other than a trade union referred to
in section 1(1)(i);

               (d)  a Provincial corporation within the meaning of the
Financial Administration Act;

               (e)  a corporation that is not registered to carry on
business in Alberta;

               (f)  a corporation that is designated under section
1(1)(l.1)(iii) of the Election Finances and Contributions Disclosure Act as
a prohibited corporation for the purposes of that Act.

     (2)  No person, corporation, trade union or employee organization
shall make a contribution to a candidate or a person on a candidate's
behalf at any time other than during an election campaign period.

     (3)   No person other than

               (a)  a declared candidate or a candidate who is
registered under section 11.1 or

               (b)  a person who is registered under section 11.2

     may accept campaign contributions.

     (4)  No candidate and no person on a candidate's behalf shall accept
a contribution at any time other than during an election campaign period.

     (5)  In an election campaign period, no person, corporation, trade
union or employee organization shall make  contributions to a candidate or
a person on a candidate's behalf in an amount or value in excess of

               (a)  $1500 for each candidate, or

               (b)  $7500 in the aggregate, in the case of
contributions to more than one candidate.

     (6)  No candidate and no person on the candidate's behalf shall
accept contributions

               (a)  from a person, employee organization, trade union,
provincial corporation or corporation referred to in subsection (1), or

               (b)  in excess of the limit imposed under subsection
(5)(a).

     (7)  The value of a contribution other than money provided to a
candidate or to a person on the candidate's behalf is the market value of
the contribution at that time.

     (8)  If any real or personal property is provided to a candidate or
to a person on the candidate's behalf for a price that is less than the
market value at that time, the amount by which the value exceeds the price
is a contribution for the purposes of this Regulation.

     (9)  Where a candidate borrows money for the purpose of paying
election expenses, any payment on the loan by a person other than the
candidate shall be considered to be a contribution to the candidate for the
purposes of this Regulation unless the candidate fully repays the person
who made the payment on the loan not later than 6 months after election
day.

     (10)  Where a person co-signs or guarantees a loan referred to in
subsection (9) and makes a payment on the loan, the amount of the payment
shall be considered to be a contribution to the candidate for the purposes
of this Regulation unless the candidate repays the payment within one year.


Disposition of contributions
     11.5(1)  If a nominated candidate learns that a contribution has been
made in contravention of this Regulation, the nominated candidate shall,
within 45 days of learning of it,

               (a)  advise the appropriate returning officer and
secretary of the fact and the circumstances, and

               (b)  return the contribution to the person who made it.

     (2)  Contributions that are not returned as required by subsection
(1)(b) become the property of the regional health authority.

     (3)  If a candidate or a person on the candidate's behalf receives an
anonymous contribution, the candidate shall ensure that the contribution is
paid to the regional health authority.


Surplus of contributions over expenses
     11.6(1)  Any surplus of contributions over expenses held by a
nominated candidate at the end of an election campaign period must be held
in trust to be expended for the nominated candidate's candidacy at the next
election.

     (2)  Subsection (1) applies whether or not the nominated candidate is
elected or runs in the election.

     (3)  A nominated candidate who is not nominated at the next general
election or by-election, or who files with the secretary of the regional
health authority for which he or she was a nominated candidate written
notice indicating that he or she does not intend to be a candidate at the
next general election or by-election must, within 7 days after nomination
day for the next general election or by-election or the day the notice is
filed, as the case may be, transfer the surplus to the regional health
authority.


Statement re: election finances
     11.61(1)  A nominated candidate shall, not later than 4 months after
election day submit to the secretary a statement respecting the nominated
candidate's election finances that contains the information required by and
is in a form acceptable to the Minister.

     (2)  The secretary shall keep a statement submitted under subsection
(1) for a period of 4 years after election day.

     (3)  A statement submitted under subsection (1) is a public document
and the secretary

               (a)  shall make the statement available for inspection
and copying by any person during normal office hours, and

               (b)  may publish or otherwise make available the
statement or information from it in the form and manner the secretary
considers appropriate.

     (4)  The secretary may charge reasonable fees for services rendered
and things done under subsection (3).

     (5)  The secretary shall forthwith advise the Minister in writing if
a nominated candidate fails to comply with subsection (1).


Record keeping
     11.7  A candidate shall retain the audited financial statements
referred to in section 118(1) as enacted by section 7(21) of this
Regulation, the statement referred to in section 11.61 and all other
financial documents and records that are relevant to the candidate's
election finances in an election until 

               (a)  in the case of a successful candidate, the expiry
of the candidate's term following the election, or

               (b)  in the case of an unsuccessful candidate or a
candidate who does not run in the election, the expiry of what would have
been the candidate's term following the election, had the candidate run in
the election and been successful.


Failure to submit financial statements
     11.8(1)  Where a nominated candidate fails to submit audited
financial statements as required by section 118 as enacted by section 7(21)
of this Regulation, the Minister shall, within 15 days of the failure, send
a notice of default in a form determined by the Minister to the nominated
candidate and the secretary.

     (2)  A nominated candidate who receives a notice of default may, not
later than 60 days after receipt of the notice, apply to the Court of
Queen's Bench for relief under subsection (3).

     (3)  On hearing the application the Court may

               (a)  dispense with compliance with section 118 as
enacted by section 7(21) of this Regulation, or any provision of it, if the
Court considers that the non-compliance is due to circumstances beyond the
control of the nominated candidate and that it is not reasonably possible
to comply with the section or provision,

               (b)  extend the time for compliance with section 118 as
enacted by section 7(21) of this Regulation, or any provision of it, if the
Court finds mitigating reasons for non-compliance with the section or
provision,

               (c)  make any order that it considers appropriate to
secure compliance with so much of section 118 as enacted by section 7(21)
of this Regulation as the Court considers reasonable in the circumstances,
or

               (d)  refuse the application.

     (4)  An application to the Court under this section must be made by
originating notice naming the returning officer as respondent.

     (5)  The decision of the Court is final.

     (6)  Where a nominated candidate to whom subsection (1) applies is
elected as a member of a regional health authority, the candidate is
disqualified from being a member on the occurrence of any of the following:

               (a)  if the candidate fails to apply for relief in
accordance with subsection (2);

               (b)  if the Court refuses the application under
subsection (3)(d);

               (c)  if the candidate fails to comply with an order made
under subsection (3)(a), (b) or (c).

     (7)  A nominated candidate who is disqualified from being a member by
virtue of the operation of subsection (6) is not eligible to be a member
until the next general election under this Regulation.


10   The following is added before section 12:

Oath of office
     11.9  No member may carry out any power, duty or function as a member
unless the member has first taken an oath of office prescribed by the Oaths
of Office Act.

11   Section 12 is repealed and the following is substituted:

Disqualifica-tion
     12   A member is disqualified from being a member if

               (a)  the member ceases to be a Canadian citizen;

               (b)  the member acquires the status of a person referred
to in section 21(3) or (4) as enacted by section 7(12) of this Regulation;

               (c)  in the case of an elected member or a member who is
appointed under section 31(1)(b) as enacted by section 7(16) of this
Regulation or under section 14 to fill a vacancy among elected members, the
member ceases to be resident in the electoral district for which the member
was elected or appointed;

               (d)  in the case of an appointed member, the member
ceases to be resident in the health region.


Resignation on disqualification
     12.1(1)  An elected member who is disqualified by reason of the
operation of 

               (a)  section 21(14) as enacted by section 7(12) of this
Regulation, or 

               (b)  section 11.8(6) or 12 

     must resign immediately.

     (2)  If the elected member does not resign immediately,

               (a)  the regional health authority may apply by
originating notice to a judge of the Court of Queen's Bench for

                         (i)  an order determining whether the person
is disqualified from being a member, or

                         (ii) an order declaring the person to be
disqualified from being a member,

               or

               (b)  an elector of the health region in respect of which
the person was elected who
                         
                         (i)  files an affidavit showing reasonable
grounds for believing that a person is disqualified from being a member,
and

                         (ii) pays into court the sum of $500 as
security for costs

                    may apply by originating notice to a judge of the
Court of Queen's Bench for an order declaring the person to be disqualified
from being a member.

     (3)  An application under this section may only be made within 3
years of the date the disqualification is alleged to have occurred.

     (4)  An application under this section may be started or continued
whether or not an election has been held between the time the
disqualification is alleged to have occurred and the time the application
is or was commenced and whether or not the person in respect of whom the
application is being brought

               (a)  resigns before or after the election,

               (b)  was re-elected in the election,

               (c)  was not re-elected or did not run in the election,
or 

               (d)  has completed a term of office.


Decision on disqualification application
     12.2  After hearing an application under section 12.1 and any
evidence, either oral or by affidavit, that is required, the judge may

               (a)  declare the person to be disqualified and a
position on the regional health authority to be vacant,

               (b)  declare the person able to remain a member, or

               (c)  dismiss the application.

     
Appeal
     12.3(1)  The decision of a judge under section 12.2 may be appealed
to the Court of Appeal.

     (2)  A person who is declared disqualified under section 12.2 and
appeals that declaration remains disqualified until the appeal is finally
determined.

     (3)  If, on the final determination of the appeal, the
disqualification is set aside, the Court must reinstate the person as a
member for any unexpired portion of the term of office for which the person
was elected and require any person who has been elected or appointed to
fill the balance of that term to vacate the office.

     (4)  If on the final disposition of the appeal the disqualification
is set aside but the term of office for which the person was elected has
expired, the person must not be reinstated but is eligible to be elected or
appointed as a member if otherwise qualified.


Reimburse-ment of costs and expenses
     12.4  The regional health authority may reimburse the person in
respect of whom an application under section 12.1 was made for any costs
and expenses that the regional health authority considers reasonable, other
than costs that have already been awarded to the person by the judge, if

               (a)  the application is dismissed, or

               (b)  an order is issued declaring the person able to
remain a member.


12   Section 13 is amended by renumbering it as section 13(1) and by adding
the following after subsection (1):

     (2)  The prohibition in subsection (1) applies regardless of whether
the nominated person runs in the election.

13   Section 14(2) is repealed and the following is substituted:

     (2)  A person is not eligible to be appointed under subsection (1)
unless on the date of the appointment the person meets the requirements of
section 21(2) to (4) as enacted by section 7(12) of this Regulation or
section 9(1), as the case may be.


14   The following is added after section 14:

Inquiry by Minister
     14.1(1)  For the purpose of determining and ensuring compliance with
this Regulation, the Minister or a person designated by the Minister for
that purpose may inquire into the business and affairs of a nominated
candidate or member of a regional health authority relative to all
financial matters of the nominated candidate or member in respect of an
election.

     (2)  For the purposes of an inquiry under this section the Minister
or designated person has the powers of a commissioner under the Public
Inquiries Act.

Offences
     14.2(1)  A person, corporation, trade union or employee organization
who makes a contribution in contravention of section 11.4(1) is guilty of
an offence and liable to a fine of not more than

               (a)  $1000 in the case of an individual, or

               (b)  $10 000 in the case of a corporation, trade union
or employee organization.

     (2)  A person, corporation, trade union or employee organization who
contravenes section 11.4(2) or (5) is guilty of an offence and liable to a
fine of not more than

               (a)  $1000 in the case of an individual, or

               (b)  $10 000 in the case of a corporation, trade union
or employee organization.

     (3)  A person who contravenes section 11.4(3), (4) or (6), 11.3 or
11.61 is guilty of an offence and liable to a fine of not more than $1000.

     (4)  A person who

               (a)  makes a false statement to a candidate or a person
authorized to accept contributions in respect of the nature, circumstances
or amount of a contribution, or

               (b)  makes a false statement in financial statements or
other statements, documents or records referred to in section 11.7

     is guilty of an offence and liable to a fine of not more than $1000.

     (5)  A person who obstructs or interferes with any person lawfully
carrying out any duty or exercising any power pursuant to this Regulation
is guilty of an offence and liable to a fine of not more than $1000.

     (6)  A person who contravenes section 118(4) as enacted by section
7(21) of this Regulation is guilty of an offence and liable to a fine of
not more than $1000.


Minister's consent to prosecution
     14.3  No prosecution for an offence under this Regulation may be
commenced or maintained without the consent of the Minister.

Order for payment
     14.4(1)  Where a person, corporation, trade union or employee
organization is convicted of an offence under section 11.4(5), the Minister
may by notice in writing direct the convicted person, corporation, trade
union or employee organization to pay an amount equal to the amount by
which the contribution limit in section 11.4(5) was exceeded to the
relevant regional health authority within the time specified in the notice.

     (2)  If the person to whom a notice is directed under subsection (1)
fails to pay the amount as required, the regional health authority may
recover the amount in an action in debt.


15   Section 15 is repealed.


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     Alberta Regulation 120/2001

     Insurance Act

     MISCELLANEOUS PROVISIONS REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 267/2001) on July 11, 2001
pursuant to sections 15, 16 and 826 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Definitions    1
Prescribed accident benefits  2
Employee benefit plan exemptions   3
Household appliance insurance exemption 4
Mennonite Aid Union exemption 5
Definition of financial institution     6
Financial responsibility cards     7
Transitional   8
Repeal    9
Expiry    10
Coming into force   11


Definitions
1   For the purposes of the Act,

     (a)  "base capital" means

               (i)  shares that

                         (A)  are non-cumulative, non-retractable,
non-redeemable and, if convertible, are only convertible into common
shares, and

                         (B)  have been issued and paid for,

               (ii) contributed surplus, and

               (iii)     retained earnings;

     (b)  "total assets" means total assets calculated by adding the book
value of all assets on an unconsolidated basis, and for that purpose book
value must be calculated in accordance with the principles, standards and
practices in effect under section 219 of the Act.


Prescribed accident benefits
2   The prescribed accident benefits for the purposes of section 33 of the
Act are the benefits provided for in section 629 of the Act or in
regulations made under section 629(9)(c).


Employee benefit plan exemptions
3(1)  The following are the medical care and sickness and accident benefits
that are prescribed for the purposes of section 15 of the Act:

     (a)  any medical care or goods or services that are not provided
under the Alberta Health Care Insurance Act or are provided after the
limits for that care or those goods or services under the Alberta Health
Care Insurance Act have been reached;

     (b)  income replacement payments that are payable in respect of
disability resulting from sickness or accident and are payable for a period
of not more than 2 years or, in the case of the Alberta School Employees
Benefit Plan, for a longer period approved by the Minister. 

(2)  The following entities are prescribed for the purposes of section
15(3)(b) of the Act:

     (a)  Asbestos Workers' Insurance Benefit Trust Fund of Alberta;

     (b)  Bricklayers and Allied Craftsmen Insurance Benefit Trust Fund
of Alberta;

     (c)  CHQR Sick Benefit Society;

     (d)  Ironworkers Health and Welfare Trust Fund of Canada;

     (e)  Labourers' Health and Welfare Trust Fund of Western Canada;

     (f)  Alberta School Employees Benefit Plan;

     (g)  International Union of Operating Engineers Local 955 Trust
Fund.

(3)  It is a condition of maintaining an exemption under subsection (2)
that the organization obtain the Minister's approval before the
organization increases the benefit level or the scope of benefits provided
under the plan it operates.

(4)  Where an organization increases the benefit or the scope of benefits
provided under the plan it operates without obtaining the Minister's
approval as required under subsection (3), the Minister may reinstate the
exemption if

     (a)  the organization applies for the approval as directed by the
Minister,

     (b)  the Minister gives the approval, and

     (c)  the Minister is satisfied that the failure to apply for
approval as required under subsection (3) was due to oversight or some
other acceptable reason in the Minister's opinion.


Household appliance insurance exemption
4(1)  In this section,

     (a)  "household appliance" includes home entertainment equipment and
personal computers, but does not include

               (i)  furnaces,

               (ii) air conditioners,

               (iii)     hot water tanks, or

               (iv) swimming pool heating units;

     (b)  "household appliance insurance" means a contract of insurance
that indemnifies a person who has an interest in a household appliance
against the appliance's malfunction, failure or breakdown.

(2)  The Act does not apply to household appliance insurance if the total
consideration payable for the insurance is $200 or less.


Mennonite Aid Union exemption
5   The Act does not apply to the mutual aid plan operated by the Mennonite
Aid Union if

     (a)  the constitution and by-laws of the Mennonite Aid Union and any
amendments to the constitution or by-laws are filed with the Superintendent
of Insurance within a time period acceptable to the Superintendent,

     (b)  the constitution and by-laws of the Mennonite Aid Union remain
in force and the plan is operated in accordance with the constitution and
by-laws, and

     (c)  each member who is a resident of Alberta is notified within 15
days of the member's making, varying or renewing a property valuation that

               (i)  the plan is exempt from the Act, and

               (ii) the plan is not covered by the Property and
Casualty Insurance Compensation Association.


Definition of financial institution
6(1)  In this section,

     (a)  "foreign financial institution" means an entity that is
incorporated or formed other than by or under an Act of the Parliament of
Canada or of the legislature of a province and that

               (i)  is engaged in the trust, loan or insurance
business, the business of a cooperative credit society or the business of
dealing in securities, or

               (ii) is otherwise generally engaged primarily in the
business of providing financial services;

     (b)  "securities dealer" means a dealer within the meaning of the
Securities Act.

(2)  For the purposes of the following provisions of the Act "financial
institution" includes a securities dealer and a foreign financial
institution:

     section 110(3)(b);
     section 111(a), (c);
     section 374(1)(b);
     section 439(1)(c);
     section 440(g), (j);
     section 441(2).

(3)  For the purposes of the following provisions of the Act "financial
institution" includes a securities dealer:

     section 309(3)(a), (c);
     section 355(2).

(4)  For the purposes of section 415(a)(i)(F)(II) and (III) and (ii)(A)(I)
and (III) of the Act, "financial institution" includes a foreign financial
institution.


Financial responsibility cards
7(1)  Where a licensed insurer issues a financial responsibility card under
section 822 of the Act, the insurer

     (a)  shall provide a separate card in respect of each vehicle
insured under the motor vehicle liability policy,

     (b)  shall, on the request of the insured, provide a copy of the
card for each person who commonly drives a vehicle insured under the motor
vehicle liability policy, and

     (c)  shall, on the request of the insured, provide a copy of any
card issued within the previous two years.

(2)  For the purposes of section 822(3) of the Act, when an owner's policy
is cancelled, the insurer shall inform the former insured that

     (a)  it is an offence to use or be in possession of a financial
responsibility card or a copy of a financial responsibility card relating
to a motor vehicle liability policy that has lapsed or been cancelled,

     (b)  it is an offence to operate a motor vehicle that is not an
insured motor vehicle, and

     (c)  the former insured is required by law to destroy the financial
responsibility card and every copy of the card issued to him.

(3)  For the purposes of section 822(3) of the Act, when an insurer gives a
notice of renewal in circumstances under which the renewal is conditional
on the payment of a further premium failing which the policy will lapse, be
cancelled or not be renewed, the insurer shall inform the insured in an
attachment to the notice that

     (a)  it is an offence to use or be in possession of a financial
responsibility card or a copy of a financial responsibility card relating
to a motor vehicle liability policy that has lapsed or been cancelled,

     (b)  it is an offence to operate a motor vehicle that is not an
insured motor vehicle, and

     (c)  the insured is required by law to destroy the financial
responsibility card and every copy of the card issued to the insured when
the insured ceases to maintain the financial responsibility in respect of
which the card was issued.

(4)  A power of attorney referred to in section 824(1)(b) of the Act must
authorize the Superintendent to accept service of any notice or process for
the unlicensed insurer in any action or proceeding against it arising out
of a motor vehicle accident in Alberta.

(5)  In an undertaking referred to in section 824(1)(b) of the Act, the
unlicensed insurer shall undertake

     (a)  to appear in any action or proceeding against it or its insured
arising out of a motor vehicle accident in Alberta, and of which it has
knowledge,

     (b)  on receipt from the Superintendent of any notice or process
referred to in subsection (4), to forthwith cause the notice or process to
be served on its insured,

     (c)  not to set up to any claim, action or proceeding under a motor
vehicle liability policy issued by it any defence that it would be
prevented from setting up if the policy had been issued in Alberta in
accordance with the law of Alberta relating to motor vehicle liability
policies, including any defence as to the limit or limits of liability and
prescribed accident benefits, and to satisfy up to the limits of liability
stated in the policy and, in any event, to an amount not less than the
limits of liability fixed in Part 5, Subpart 5 of the Act, any judgment
rendered against it or its insured by a court in Alberta which has become
final in any such action or proceeding, and

     (d)  not to issue Canada non-resident interprovince motor vehicle
liability insurance cards to persons other than persons who are
non-residents of Canada and who are insured with the unlicensed insurer
under a contract of motor vehicle liability insurance.

(6)  Any municipal corporation in Alberta that has power to assess and
collect property taxes under the Municipal Government Act is a prescribed
corporation for the purposes of section 825 of the Act.

(7)  Where the Superintendent issues a financial responsibility card to a
corporation under section 825 of the Act, the Superintendent

     (a)  shall provide a separate card in respect of each motor vehicle
registered in the name of the corporation,

     (b)  shall, on the request of the corporation, provide a copy of the
card for each person who commonly drives a motor vehicle registered in the
name of the corporation, and

     (c)  shall, on the request of the corporation, provide a copy of any
card previously issued to the corporation.


Transitional
8   An association or entity that would be exempt from the Act but for the
applicable time period over which income replacement payments must be paid
under section 3(1)(b) of this Regulation, is nevertheless exempt from the
Act but must bring itself into compliance with section 3(1)(b) within one
year after the coming into force of this Regulation.


Repeal
9(1)  The Exemption Regulation (AR 287/96) is repealed.

(2)  The Definition of Capital Regulation (AR 286/96) is repealed.


Expiry
10   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
11   This Regulation comes into force on the coming into force of any
provision of the Insurance Act (SA 1999 cI-5.1).


     ------------------------------

     Alberta Regulation 121/2001

     Insurance Act

     CLASSES OF INSURANCE REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 268/2001) on July 11, 2001
pursuant to section 16 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Interpretation 1
Classes of insurance     2
Licences  3
Repeal    4
Expiry    5
Coming into force   6


Interpretation
1(1)  In this Regulation,

     (a)  "accident insurance" means insurance by which the insurer
undertakes, otherwise than incidentally to some other class of insurance
under the Act, to pay insurance money in the event of accident to the
person insured, but does not include insurance by which the insurer
undertakes to pay insurance money both in the event of death by accident
and in the event of death from another cause;

     (b)  "accident and sickness insurance" means a class of insurance
consisting of accident insurance and sickness insurance;

     (c)  "accidental death insurance" means insurance undertaken by an
insurer as part of a contract of life insurance, whereby the insurer
undertakes to pay an additional amount of insurance money in the event of
the death by accident of the person whose life is insured;

     (d)  "aircraft insurance" means insurance against loss of or damage
to an aircraft and against liability for loss of or damage to property or
injury to or death of persons caused by an aircraft or by the use or the
operation of an aircraft;

     (e)  "automobile insurance" means insurance

               (i)  against liability arising out of

                         (A)  injury to or death of a person, or

                         (B)  loss of or damage to property,

                    caused by an automobile or the use or operation of
an automobile, or

               (ii) against loss of or damage to an automobile and the
loss of use of an automobile,

          and includes insurance otherwise coming within the class of
accident insurance if the accident is caused by an automobile or the use or
operation of an automobile, whether liability exists or not, and the
contract also includes insurance described in subclause (i);

     (f)  "boiler and machinery insurance" means insurance against loss
of or damage to property and against liability for loss of or damage to
property or injury to or death of persons through the explosion, collapse,
rupture or breakdown of, or accident to, boilers or machinery of any kind;

     (g)  "burglary insurance" means insurance against loss or damage
through burglary, housebreaking, robbery or theft;

     (h)  "credit insurance" means insurance against loss to the insured
through the insolvency or default of a person to whom credit is given in
respect of the provision of goods;

     (i)  "crop insurance" means insurance against loss of or damage to
growing crops from risks or perils to which such crops may be exposed, but
does not include hail insurance;

     (j)  "disability insurance" means insurance undertaken by an insurer
as part of a contract of life insurance whereby the insurer undertakes to
pay insurance money or to provide other benefits in the event that the
person whose life is insured becomes disabled as a result of bodily injury
or disease;

     (k)  "employers' liability insurance" means insurance, not being
insurance incidental to some other class of insurance under the Act,
against loss to an employer through liability for accidental injury to or
death of an employee arising out of or in the course of the employee's
employment, but does not include workers' compensation insurance;

     (l)  "explosion insurance" means insurance against loss of or damage
to property of any kind caused by explosion, bombardment, invasion,
insurrection, riot, civil war or commotion or military or usurped power;

     (m)  "fidelity insurance" means

               (i)  insurance against loss caused by a breach of trust,
or

               (ii) insurance against loss caused by the improper
performance of the duties of an office;

     (n)  "fire insurance" means insurance, not being insurance
incidental to some other class of insurance under the Act, against loss of
or damage to property through fire, lightning or explosion due to ignition;

     (o)  "forgery insurance" means insurance against loss sustained by
reason of forgery;

     (p)  "general liability insurance" means a class of insurance
consisting of employers' liability insurance, liability insurance, public
liability insurance and workers' compensation insurance;

     (q)  "guarantee insurance" means the undertaking

               (i)  to perform an agreement or contract or to discharge
a trust, duty or obligation on the default of the person liable for the
performance or discharge, or

               (ii) to pay money on default or in lieu of the
performance or discharge or where there is loss or damage through the
default,

          and includes insurance against loss or liability for loss due
to the invalidity of the title to any property or of any instrument or to
any defect in the title or instrument, but does not include credit
insurance;

     (r)  "hail insurance" means insurance against loss of or damage to
crops caused by hail;

     (s)  "inland marine insurance" means marine insurance in respect of
subjects of insurance at risk above the harbour of Montreal;

     (t)  "inland transportation insurance" means insurance, other than
marine insurance, against loss of or damage to property

               (i)  while in transit or during delay incidental to
transit, or

               (ii) when, in the opinion of the Superintendent, the
risk is substantially a transit risk;

     (u)  "legal expense insurance" means

               (i)  insurance against the cost incurred by a person for
legal services rendered to that person, including fees or other costs
incurred relative to the provision of such services, or

               (ii) any arrangement which provides, directly or
indirectly, legal services to a person, but does not include such an
arrangement made directly with an active member of the Law Society of
Alberta;

     (v)  "liability insurance" means insurance against liability for
loss of or damage to property or injury to or death of persons arising from
an accidental cause and not provided for by any other class of insurance
under the Act;

     (w)  "life insurance" means an undertaking by an insurer to pay
insurance money

               (i)  on death,

               (ii) on the happening of an event or contingency
dependent on human life,

               (iii)     at a fixed or determinable future time, or

               (iv) for a term dependent on human life,

          and without limitation, includes

               (v)  accidental death insurance but not accident
insurance,

               (vi) disability insurance, and

               (vii)     an undertaking to provide an annuity, or what would
be an annuity except for the fact that the periodic payments are unequal in
amount, for a term dependent solely or partly on a human life;

     (x)  "livestock insurance" means insurance, not being insurance
incidental to any other class of insurance under the Act, against loss
through the death or sickness of or an accident to an animal;

     (y)  "loss of employment insurance" means insurance against the
involuntary loss of employment by a person where the loss of employment
benefit is limited to an amount equal to all or part of the debt of the
person;

     (z)  "marine and inland marine insurance" means a class of insurance
consisting of marine insurance and inland marine insurance;

     (aa) "marine insurance" means insurance against losses incidental to
marine adventure and may include, by the express terms of a contract or by
usage of trade, protection against losses on inland waters or by land or
air that are incidental to any sea voyage;

     (bb) "mortgage insurance" means insurance against loss caused by
default on the part of the borrower under a loan secured by a mortgage on
real property, a hypothec on immovable property or an interest in real or
immovable property;

     (cc) "plate glass insurance" means insurance, not being insurance
incidental to some other class of insurance under the Act, against loss of
or damage to plate, sheet or window glass, whether in place or in transit;

     (dd) "property damage insurance" means insurance against loss or of
damage to property that is not included in or incidental to some other
class of insurance under this Act;

     (ee) "property insurance" means a class of insurance against loss of
or loss of use of or damage to real or personal property, and includes
burglary insurance, explosion insurance, extended perils insurance under
section 37 of the Act, fire insurance, forgery insurance, inland
transportation insurance, livestock insurance, plate glass insurance,
property damage insurance, sprinkler leakage insurance, theft insurance and
weather insurance;

     (ff) "public liability insurance" means insurance against liability
for loss of or damage to the property of others or injury to or death of
persons that is not included in or incidental to some other class of
insurance defined by or under this Act;

     (gg) "sickness insurance" means insurance by which the insurer
undertakes to pay insurance money in the event of sickness of the person
insured, but does not include disability insurance;

     (hh) "sprinkler leakage insurance" means insurance against loss of
or damage to property through the breakage or leakage of sprinkler
equipment or other fire protection systems, or of pumps, water pipes, or
plumbing and its fixtures;

     (ii) "steam boiler insurance" means insurance

               (i)  on steam boilers and pipes, engines and machinery
connected with or operated by steam boilers, against explosion, rupture and
accident, and

               (ii) against personal injury, loss of life and
destruction of or damage to property resulting from such explosions,
ruptures and accidents;

     (jj) "surety insurance" means insurance whereby an insurer
guarantees

               (i)  to perform a contract or an undertaking on default
of the person liable for the performance, or

               (ii) to pay a penalty or to indemnify for any default in
the performance of a contract or undertaking,

          but does not include credit insurance or mortgage insurance;

     (kk) "theft insurance" means insurance against loss or damage
through theft, wrongful conversion, burglary, housebreaking, robbery or
forgery;

     (ll) "title insurance" means insurance against loss or damage
resulting from

               (i)  a defect in the title to real property,

               (ii) the existence of a lien, encumbrance or servitude
on real property,

               (iii)     a defect in the execution of a mortgage, hypothec
or deed of trust in respect of real property, or

               (iv) any other matter affecting the title to real
property or the right to use and enjoyment of real property;

     (mm) "vehicle warranty insurance" means the sub-class of boiler and
machinery insurance that comprises insurance against loss of or damage to a
motor vehicle arising from its mechanical failure, but does not include
automobile insurance or insurance incidental to automobile insurance;

     (nn) "weather insurance" means insurance against loss or damage
through windstorm, cyclone, tornado, rain, hail, flood or frost, but does
not include hail insurance;

     (oo) "workers' compensation insurance" means insurance of an
employer against the cost of compensation prescribed by statute for bodily
injury, disability or death of a worker through accident or disease arising
out of or in the course of the worker's employment.

(2)  An undertaking referred to in subsection (1)(w)(vii) is deemed always
to have been life insurance.


Classes of insurance
2(1)  The following are the classes of insurance for the purposes of the
Act and the regulations:

     (a)  accident insurance;

     (b)  accident and sickness insurance;

     (c)  accidental death insurance;

     (d)  aircraft insurance;

     (e)  automobile insurance;

     (f)  boiler and machinery insurance;

     (g)  burglary insurance;

     (h)  credit insurance;

     (i)  crop insurance;

     (j)  disability insurance;

     (k)  employers' liability insurance;

     (l)  explosion insurance;

     (m)  fidelity insurance;

     (n)  fire insurance;

     (o)  forgery insurance;

     (p)  general liability insurance;

     (q)  guarantee insurance;

     (r)  hail insurance;

     (s)  inland marine insurance;

     (t)  inland transportation insurance;

     (u)  legal expense insurance;

     (v)  liability insurance;

     (w)  life insurance;

     (x)  livestock insurance;

     (y)  loss of employment insurance;

     (z)  marine and inland marine insurance;

     (aa) marine insurance;

     (bb) mortgage insurance;

     (cc) plate glass insurance;

     (dd) property damage insurance;

     (ee) property insurance;

     (ff) public liability insurance;

     (gg) sickness insurance;

     (hh) sprinkler leakage insurance;

     (ii) steam boiler insurance;

     (jj) surety insurance;

     (kk) theft insurance;

     (ll) title insurance;

     (mm) weather insurance;

     (nn) workers' compensation insurance.

(2)  For the purposes of the Act and the regulations, vehicle warranty
insurance

     (a)  is a sub-class of boiler and machinery insurance, and

     (b)  is deemed to be a class of insurance.


Licences
3   A licence may be granted to an insurer to carry on any of the classes
of insurance referred to in section 2.


Repeal
4   The Classes of Insurance Regulation (AR 325/78) is repealed.


Expiry
5   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
6   This Regulation comes into force on the coming into force of any
provision of the Insurance Act (SA 1999 cI-5.1).



     Alberta Regulation 122/2001

     Insurance Act

     INSURANCE AGENTS AND ADJUSTERS REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 269/2001) on July 11, 2001
pursuant to sections 77, 498 and 849 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Interpretation 1

     Part 1
     Insurance Agents

     Classes and Levels of Certificates
     of Authority

Classes of certificate        2
Life insurance certificate    3
Ministerial restrictions 4
Certificates for individuals  5
Certificates for businesses   6
Licence from outside Alberta  7
Educational qualifications for life and accident and
  sickness insurance agents   8
Educational qualifications for general insurance agents     9
Designated representative     10
Incompetence   11

     Restricted Certificates

Information provided by consumer   12
Information from non-insurance transaction   13
Insurance application    14
Disclosure     15
Loan offers    16
Information certificate  17
Right of rescission 18

     Part 2
     Adjusters

     Levels of Certificates of Authority

Classes of certificates  19
Holding one level   20

     Requirements

Eligibility for certificate   21
Educational qualifications and restrictions
  for insurance adjusters     22
Operating from more than one office     23
Designated representative     24
Condition 25


     Part 3
     General

     Prescribed Matters

Prescribed amounts  26
Prescribed enterprises   27

     Special Broker

Condition 28

     Continuing Education

Continuing education program  29
Continuing education requirements  30
Records   31
Course credit  32

     Financial Guarantee

Errors and omissions insurance     33
Existing insurance  34
Amount of insurance 35
Exception to financial guarantee requirements     36

     Part 4
     Transitional Provisions, Repeals,
     Expiry and Coming into Force

Transitional   37,38
Repeal    39
Expiry    40
Coming into force   41


Interpretation
1(1)  In this Regulation,

     (a)  "accident and sickness certificate" means a certificate of
authority to act as an accident and sickness insurance agent;

     (b)  "Act" means the Insurance Act (SA 1999 cI-5.1);

     (c)  "business" means a body corporate, partnership or sole
proprietorship, but does not include an insurer;

     (d)  "conflict of interest position" means a situation where an
insurance agent or an adjuster has an incentive to act other than in the
best interest of the client;

     (e)  "former Insurance Act" means the Insurance Act (RSA 1980 cI-5);

     (f)  "freight forwarding company" means a corporation that carries
on business offering freight forwarding services, including services
related to the carriage, consolidation, storage, handling, packing or
distribution of transported goods;

     (g)  "general insurance" means any class of property and casualty
insurance, other than accident and sickness insurance;

     (h)  "general insurance agent" means an insurance agent for general
insurance;

     (i)  "general insurance certificate" means a certificate of
authority to act as a general insurance agent;

     (j)  "individual" does not include an individual who is the sole
proprietor of a sole proprietorship;

     (k)  "life insurance certificate" means a certificate of authority
to act as a life insurance agent;

     (l)  "personal information" means information about an identifiable
individual but does not include the name, title, business address or
business telephone number of the individual;

     (m)  "property and casualty insurance" means any class of insurance
other than life insurance;

     (n)  "restricted certificate" means a restricted insurance agent's
certificate of authority issued under section 454 of the Act;

     (o)  "sales finance company" means a corporation, other than a
financial institution, that provides consumer loans, and, for the purposes
of this Regulation, a corporation that provides or arranges to provide
credit;

     (p)  "travel insurance" means insurance provided to an individual

               (i)  in respect of a trip by the individual away from
the place where the individual ordinarily resides, without any individual
assessment of risk, against

                         (A)  loss that results from the cancellation
or interruption of the trip,

                         (B)  loss of, or damage to, personal
property that occurs while on the trip, or

                         (C)  loss that is caused by the delayed
arrival of personal baggage while on the trip,

               or

               (ii) in respect of a trip by the individual away from
the province in which the individual ordinarily resides,

                         (A)  against expenses incurred while on the
trip that result from an illness or the disability of the individual that
occurs on the trip,

                         (B)  against expenses incurred while on the
trip that result from bodily injury to, or the death of, the individual
caused by an accident while on the trip,

                         (C)  whereby the insurer undertakes to pay
one or more sums of money in the event of an illness or the disability of
the individual that occurs on the trip, or of bodily injury to, or the
death of, the individual that is caused by an accident while on the trip,

                         (D)  against expenses incurred by the
individual for dental care necessitated by an accident while on the trip,
or

                         (E)  in the event that the individual dies
while on the trip, against expenses incurred for the return of that
individual's remains to the place where the individual was ordinarily
resident before death, or for travel expenses incurred by a relative of
that  individual who must travel to identify that individual's remains.

(2)  In subsections (3) and (5), 

     (a)  "creditor's group insurance" means insurance effected by a
creditor whereby the lives or well-being or the lives and well-being of a
number of its debtors are insured severally under a single contract;

     (b)  "group travel insurance" means travel insurance effected by an
entity named pursuant to section 454 of the Act.

(3)  The following are prescribed contracts of group insurance for the
purposes of the definition of insurance agent under section 1(bb)(v) of the
Act:

     (a)  creditor's group insurance;

     (b)  group travel insurance.

(4)  Without limiting the generality of section 5(1)(f) or (2)(d), an
individual is deemed to be in a position to use coercion or undue influence
in order to control, direct or secure insurance business if the individual
is an officer or employee of a deposit-taking institution other than a
special purpose trust company within the meaning of the Loan and Trust
Corporations Act or sales finance company, unless the individual is acting
under a restricted certificate.

(5)  In sections 14 and 15, "credit-related insurance" means

     (a)  creditor's group insurance, or

     (b)  insurance effected by a creditor against the risk of default by
a debtor due to involuntary loss of employment. 

(6)  In Part 2, a reference to an Associate or Fellow of the Insurance
Institute of Canada, includes a Chartered Insurance Professional or a
Fellow Chartered Insurance Professional, as the case may be.


     PART 1

     INSURANCE AGENTS

     Classes and Levels of Certificates
     of Authority

Classes of certificate
2(1)  The following classes and levels of insurance agent's certificates of
authority are established for individuals:

     (a)  levels 1 and 2 life insurance;

     (b)  accident and sickness;

     (c)  levels 1 and 2 general insurance.

(2)  The following classes of insurance agent's certificates of authority
are established for a business:

     (a)  life insurance;

     (b)  accident and sickness;

     (c)  general insurance.

(3)  A holder of an insurance agent's certificate of authority must comply
with the limits, restrictions, terms and conditions imposed on the class or
level of certificate of authority and may act as an insurance agent only
for the class of insurance authorized by the certificate.

(4)  No individual may hold more than one level of insurance agent's
certificate of authority in each class.

(5)  An insurance agent's certificate of authority for general insurance
authorizes an insurance agent to sell travel insurance.


Life insurance certificate
3(1)  A holder of a level 1 life insurance certificate of authority

     (a)  may act as an insurance agent only for the licensed life
company that recommends that the holder be issued a life insurance
certificate of authority, and

     (b)  may not complete any replacement of a contract within the
meaning of the Replacement of Life Insurance Contracts Regulation unless
the disclosure statement required by that Regulation is countersigned by a
level 2 life insurance agent.

(2)  It is a prescribed requirement for obtaining life insurance from
another insurer that an insurance agent who holds a level 1 insurance
agent's certificate of authority, before acting as an insurance agent for
that other insurer, obtain the written consent, in each case, of the
insurer who recommended the agent under section 458 of the Act.


Ministerial restrictions
4   The Minister may, as a condition of an insurance certificate of
authority, limit the holder to the sale of a class of insurance and
specified policies.


Certificates for individuals
5(1)  In addition to the requirements of the Act, the requirements to be
met by an individual in respect of a new insurance agent's certificate of
authority are as follows:

     (a)  the individual must have the educational qualifications set out
by this Regulation with respect to the class and level of certificate of
authority being applied for;

     (b)  the individual must be mentally competent;

     (c)  the individual must be trustworthy;

     (d)  the individual must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the
individual unfit to receive a certificate of authority;

     (e)  the individual must not have the status of a conditionally
discharged or undischarged bankrupt;

     (f)  the individual must not be in a position to use coercion or
undue influence in order to control, direct or secure insurance business;

     (g)  the individual must not be engaged in another occupation or
business that would place the individual in a conflict of interest position
when acting as an insurance agent.

(2)  In addition to the requirements of the Act, the requirements to be met
by an individual to retain an insurance agent's certificate of authority or
for a certificate of authority that is being renewed or reinstated are as
follows:

     (a)  the individual must have met the continuing education
requirements set out in section 30;

     (b)  the individual must be mentally competent;

     (c)  the individual must not have the status of an undischarged
bankrupt or, if the individual has the status of an undischarged bankrupt,
the Minister is satisfied that the bankruptcy is not related to the
individual's activities as an insurance agent, as a registrant under the
Securities Act, or as a mortgage broker with the meaning of the Real Estate
Act;

     (d)  the individual must not be in a position to use coercion or
undue influence in order to control, direct or secure insurance business;

     (e)  the individual must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the
individual unfit to receive a certificate of authority;

     (f)  the individual must not be engaged in another occupation or
business that would place the individual in a conflict of interest position
when acting as an insurance agent.


Certificates for businesses
6(1)  In addition to the requirements of the Act, the requirements to be
met by a business in respect of a new insurance agent's certificate of
authority are as follows:

     (a)  the business must satisfy the Minister that the business is
registered under the Business Corporations Act or under the Partnership
Act, if applicable;

     (b)  the business must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the applicant
unfit to receive the certificate of authority;

     (c)  no director, officer, partner, shareholder with a significant
interest or employee of the business is in a position to use coercion or
undue influence in order to control, direct or secure insurance business;

     (d)  if the business is formed or incorporated in another province
or territory it must provide evidence that it is licensed in that province
or territory by the appropriate licensing authority as an insurance agent.

(2)  In addition to the requirements of the Act, the requirements to be met
by a business to retain an insurance agent's certificate of authority or
for a certificate of authority that is being renewed or reinstated are as
follows:

     (a)  the business must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the applicant
unfit to receive the certificate of authority;

     (b)  no director, officer, partner, shareholder with a significant
interest or employee of the business is in a position to use coercion or
undue influence in order to control, direct or secure insurance business.


Licence from outside Alberta
7   If an individual or business from another jurisdiction obtains an
insurance agent's certificate of authority in Alberta, and the licence
issued by the appropriate licensing authority in that jurisdiction is
subject to terms and conditions, the Minister may impose the same terms and
conditions on the certificate of authority issued in Alberta.


Educational qualifications for life and accident and sickness insurance
agents
8(1)  An individual is not eligible to apply for a level 1 life insurance
certificate of authority unless within the previous 12 months the
individual has met the educational requirements and  passed an examination
both of which have been approved by the Minister.

(2)  An individual is not eligible to apply for a level 2 life insurance
certificate of authority unless the individual has held a level 1 life
insurance certificate of authority for at least 2 years and has passed an
examination approved by the Minister.

(3)  An individual is not eligible to apply for an accident and sickness
certificate of authority unless within the previous 12 months the
individual has met the educational requirements approved by the Minister
and has passed an examination approved by the Minister.

(4)  An individual who fails the examination referred to in subsection (1),
(2) or (3) is allowed to rewrite that examination 2 further times at any
time, but a 3rd or subsequent rewriting is not allowed unless a period of
at least 6 months has elapsed since the date of the previous rewriting.

(5)  Despite subsections (1) to (3), an individual is not required to pass
an examination referred to in those subsections if

     (a)  the individual is not a resident of Alberta and is licensed to
act as an insurance agent in the individual's home jurisdiction for the
class of insurance being applied for and provides evidence from the
appropriate licensing authority of the home jurisdiction certifying that
the individual has satisfactorily completed courses in life insurance or
accident and sickness insurance, as the case may be, and passed an
examination that is equivalent to the examination referred to in subsection
(1), (2) or (3), as the case may be, and the Minister is of the opinion
that the courses and examinations are equivalent, 

     (b)  the individual held a certificate of authority for the same
class and level as is being applied for in the 2-year period before the
receipt by the Minister of the application for a certificate of authority,
or

     (c)  the individual was licensed in another jurisdiction within the
previous 12 months as an insurance agent in a class and level equivalent to
those being applied for, is resident in Alberta, and provides evidence from
the appropriate licensing authority of that jurisdiction certifying that
the individual meets the course or examination requirements of clause (a).

(6)  The Minister may issue an insurance agent's certificate of authority,
subject to any terms and conditions the Minister may impose, covering a
period not exceeding 180 days to an applicant who has not written an
examination if the applicant is

     (a)  the surviving spouse, next of kin or personal representative of
a deceased agent who at the time of the agent's death held a subsisting
certificate of authority, or

     (b)  the spouse, relative, employee, legal guardian or committee of
an insurance agent who, at the time of becoming disabled through sickness,
incapacity, injury or other similar circumstances, held a subsisting
certificate of authority.


Educational qualifications for general insurance agents
9(1)  An individual is not eligible to apply for a level 1 general
insurance agent's certificate of authority for any class of insurance
unless within the previous 12 months the individual has passed an
examination respecting general insurance approved by the Minister.

(2)  An individual is not eligible to apply for a level 2 general insurance
agent's certificate of authority unless, within the previous 12 months,

     (a)  in the case of an individual who does not hold a level 1
certificate of authority, the individual has passed the general insurance
examination referred to in subsection (1) and one of the examinations
referred to in clause (b), and

     (b)  in the case of an individual who holds a level 1 certificate of
authority, the individual has passed

               (i)  the general insurance examination for commercial
lines approved by the Minister, or

               (ii) the general insurance examination for personal
lines approved by the Minister.

(3)  An individual who fails the examination referred to in subsection (1)
or (2) is allowed to rewrite that examination 2 further times at any time,
but a 3rd or subsequent rewriting is not allowed unless a period of at
least 6 months has elapsed since the date of the previous rewriting.

(4)  An individual may elect to write either examination referred to in
subsection (2)(b) at each attempt, but subsection (3) applies as if the
same examination were being attempted each time.

(5)  It is a condition of every level 1 general insurance agent's
certificate of authority that the holder must qualify for a level 2 general
insurance certificate of authority within 36 months after obtaining the
level 1 certificate of authority, and if the condition is not met, the
certificate of authority is cancelled.

(6)  Subject to the Act, on qualifying for and on application for a level 2
general insurance certificate of authority under subsection (5), the
insurance agent's certificate of authority is to be issued in accordance
with the Act.

(7) If the Minister is satisfied that a holder of a level 1 general
insurance certificate of authority has not complied with the condition set
out in subsection (5), the individual who held the certificate of authority
is ineligible to hold a general insurance agent's certificate of authority
for 12 months after the cancellation.

(8)  Despite subsections (1) and (2), an individual is not required to pass
an examination referred to in those subsections if

     (a)  the individual is not a resident of Alberta and is licensed to
act as a general insurance agent in the individual's home jurisdiction and
provides evidence from the appropriate licensing authority of that
jurisdiction certifying that the individual has passed examinations that
are equivalent to the examination referred to in subsections (1) or (2), as
the case may be, and the Minister is of the opinion that the examinations
are equivalent,

     (b)  the applicant held a certificate of authority in the same class
and level as is being applied for in the 2-year period before the receipt
by the Minister of the application for a certificate of authority,

     (c)  the individual intends to carry on business as an insurance
agent only for hail insurance or livestock insurance, or

     (d)  the individual was licensed in another jurisdiction within the
previous 12 months as an insurance agent in a class and level equivalent to
those being applied for, is resident in Alberta, and provides evidence from
the appropriate licensing authority of that jurisdiction certifying that
the individual meets the examination requirement of clause (a).

(9)  The Minister may issue an insurance agent's certificate of authority,
subject to any terms and conditions the Minister may  impose, covering a
period not exceeding 180 days to an applicant who has not written an
examination if the applicant is

     (a)  the surviving spouse, next of kin or personal representative of
a deceased agent who at the time of the agent's death held a subsisting
certificate of authority, or

     (b)  the spouse, relative, employee, legal guardian or committee of
an insurance agent or the representative of a committee of insurers who, at
the time of the agent's disability through sickness, incapacity, injury or
other similar circumstances, held a subsisting certificate of authority.


Designated representative
10(1)  This section establishes the requirements to be met by a designated
representative of a business that holds an insurance agent's certificate of
authority.

(2)  A designated representative of a business must

     (a)  be an individual,

     (b)  hold an insurance agent's certificate of authority that is of
the same class as the insurance agent's certificate of authority held by
the business, and

     (c)  have responsibility for the management and supervision of the
business.

(3)  The designated representative of a business that holds a life
insurance agent's certificate of authority must hold a level 2 life
insurance agent's certificate of authority.

(4)  The designated representative of a business that holds a general
insurance agent's certificate of authority must have at least 24 months'
experience in general insurance within the 36 months before being
designated as a designated representative and

     (a)  hold a level 2 general insurance agent's certificate of
authority, or

     (b)  have established eligibility for a level 2 general insurance
agent's certificate of authority within the previous 12 months before being
designated as a designated representative.


Incompetence
11   If the Minister is satisfied that a holder of an insurance agent's
certificate of authority has demonstrated incompetence to act as an
insurance agent, one of the conditions that the Minister may impose under
section 480(1) of the Act is that the certificate of authority will not be
renewed or reinstated unless the individual who holds the certificate of
authority takes a written examination, or courses, approved by the Minister
and achieves a mark specified by the Minister.


     Restricted Certificates

Information provided by consumer
12(1)  The holder of a restricted certificate

     (a)  may not use personal information given by a person buying
insurance unless it is used for the purpose for which it is given and the
person signs a consent that meets the requirements of subsection (2), and 

     (b)  may not release the information described in clause (a) to
someone who is not an employee of the holder unless the person signs a
consent that meets the requirements of subsection (3).

(2)  The consent referred to in subsection (1)(a) must be identified as a
consent to the person who is the subject of the information and
specifically identify the purpose for which the information may be used by
the restricted certificate holder.

(3)  The consent referred to in subsection (1)(b) must be identified as a
consent to the person who is the subject of the information and 
specifically identify the information to be released, to whom the
information is to be released and the purpose for which the released
information may be used.

(4)  Subsection (1)(b) does not apply if the personal information

     (a)  is  released to another person as required by law, or

     (b)  is released to the insurer on behalf of which the holder of the
restricted certificate is marketing insurance.


Information from non-insurance transaction
13(1)  If a holder of a restricted certificate receives, for the purposes
of a non-insurance transaction, personal information pertaining to a
person's insurance coverage, the holder may not

     (a)  release the information to another person except for the
purposes of the non-insurance transaction or a similar subsequent
transaction, or 

     (b)  use the information for a purpose except for the purpose of the
non-insurance transaction or a similar subsequent transaction.

(2)  Subsection (1) does not apply if the release or use of the information
pertaining to the person's insurance coverage is required by law.


Insurance application
14(1)  When a holder of a restricted certificate negotiates or enters into
a transaction with a person for credit-related insurance at the same time
as a credit arrangement is being negotiated or entered into with the
person, the holder must provide the person with a separate application for
the insurance coverage.

(2)  A holder of a restricted certificate must, on request, provide a
person making an application for insurance with a copy of the completed
insurance application.


Disclosure
15(1)  A holder of a restricted certificate, at the time the person applies
for insurance coverage, must

     (a)  provide to a person buying insurance

               (i)  a summary of the terms, including limitations and
restrictions, of the insurance offered, and

               (ii) a summary of the circumstances under which the
insurance commences or terminates and the procedures to follow in making a
claim,

     and

     (b)  notify a person buying insurance that the policy will be sent
to the person, or in the case of a contract of group insurance, a
certificate will be sent to the person.

(2)  A holder of a restricted certificate who is marketing credit-related
insurance, at the time of application for insurance coverage

     (a)  must provide to a person buying insurance

               (i)  a statement that sets out the right to rescind the
insurance contract and obtain a full refund of the premium pursuant to
section 18, and

               (ii) a statement that the duration of the insurance is
less than the term of the amortization period of any related loan, or that
the amount of the insurance is less than the indebtedness, if that is the
case,

     and

     (b)  must inform a person buying insurance that the person may
contact the insurer for further information or clarification, the name of
the insurer that is providing the insurance and how that insurer may be
contacted.

(3)  The insurer on behalf of which the holder of the restricted
certificate is marketing insurance must ensure that procedures are in place
to effect the requirements of this section.

(4)  Where a holder of a restricted certificate receives any compensation,
inducement or benefit from an insurer, directly or indirectly, for selling
insurance, the holder of a restricted certificate must disclose that fact
to any person who is considering buying insurance from that holder.


Loan offers
16(1)  A holder of a restricted certificate may not, when offering to make
a loan to, or arrange a loan for, a person, inform the person that the
person must, or require the person to, purchase insurance before the loan
can be made.

(2)  Despite subsection (1), a holder of a restricted certificate may, when
offering to make a loan to, or arrange a loan for, a person, inform the
person that the person must, or require the person to, purchase insurance
if the insurance is to protect the lender against default of the borrower
and the insurance is from an insurer licensed to do business in Alberta.

(3)  For the purpose of subsection (2), a holder of a restricted
certificate may not inform the person that the person must, or require the
person to, purchase insurance from the holder or an insurer or insurance
agent, specified by the holder.


Information certificate
17   A holder of a restricted certificate must 

     (a)  ensure that purchasers or potential purchasers of insurance are
informed that they are contracting or considering contracting with an
insurer and not with the holder, and

     (b)  ensure that written documentation is provided to the purchaser
of insurance evidencing the insurance and setting  out the information
required to be disclosed by clause (a) and section 15(1)(b) within 30 days
of the insurance coming into force.


Right of rescission
18(1)  A person who buys life insurance through the holder of a restricted
certificate has 10 days, or any longer period specified in the policy or
certificate, after receiving the written documentation  referred to in
section 17 to rescind the insurance.

(2)  A person who rescinds insurance in accordance with subsection (1) is
entitled to receive from the insurer a refund of the whole premium that has
been paid.


     PART 2

     ADJUSTERS

     Levels of Certificates of Authority

Classes of certificates
19(1)  The Minister may issue an adjuster's certificate of authority to a
business for the purpose of section 460(1) of the Act.

(2)  The following levels of adjusters' certificates of authority are
established for individuals for the purposes of section 460(2) of the Act:

     (a)  level 1 adjuster;

     (b)  level 2 adjuster;

     (c)  level 3 adjuster.

(3)  It is a condition of each adjuster's certificate of authority that the
holder comply with the limits, restrictions, terms and conditions imposed
on the adjuster's certificate of authority.

(4)  The Minister may issue an adjuster's certificate of authority limited
to adjusting hail insurance losses.


Holding one level
20   No individual may hold more than one level of adjuster's certificate
of authority.


     Requirements

Eligibility for certificate
21(1)  In addition to the requirements of the Act, the requirements to be
met by an individual in respect of a new adjuster's certificate of
authority are as follows:

     (a)  the individual must have the educational qualifications set out
by this Regulation with respect to the level of certificate of authority
being applied for;

     (b)  the individual must be mentally competent;

     (c)  the individual must be trustworthy;

     (d)  the individual must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the
individual unfit to receive the certificate of authority;

     (e)  the individual must not be engaged in another occupation or
business that would place the individual in a conflict of interest position
when acting as an adjuster.

(2)  In addition to the requirements of the Act, the requirements to be met
by an individual to retain an adjuster's certificate of authority or for a
certificate of authority that is being renewed or reinstated are as
follows:

     (a)  the individual must not be engaged in another occupation or
business that would place the individual in a conflict of interest position
when acting as an adjuster;

     (b)  the individual must be mentally competent;

     (c)  the individual must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the
individual unfit to receive a certificate of authority;

     (d)  the individual must have met the continuing education
requirements set out in section 30.

(3)  In addition to the requirements of the Act, the requirements to be met
by a business in respect of a new adjuster's certificate of authority,
renewal of an adjuster's certificate of authority or reinstatement of an
adjuster's certificate of authority and for retaining an adjuster's
certificate of authority are as follows: 

     (a)  the business must not have been convicted of any offence the
nature of which, in the opinion of the Minister, would render the business
unfit to receive the certificate of authority;

     (b)  the business must not be engaged in another business activity
that would place the business in a conflict of interest position when
acting as an adjuster; 

     (c)  the business must satisfy the Minister that the business is
registered under the Business Corporations Act or under the Partnership
Act, if applicable.


Educational qualifications and restrictions for insurance adjusters
22(1)  An individual is not eligible to apply for a level 1 adjuster's
certificate of authority unless, within the previous 12 months, the
individual has passed an examination approved by the Minister.

(2)  An individual who fails the examination referred to in subsection (1)
is allowed to rewrite that examination 2 further times at any time, but a
3rd or subsequent rewriting is not allowed unless a period of at least 6
months has elapsed since the date of the previous rewriting.

(3)  An individual is not eligible to apply for a level 2 adjuster's
certificate of authority unless the individual 

     (a)  has successfully completed 6 courses of the Insurance Institute
of Canada for a designation as an Associate of the Insurance Institute of
Canada, of which one course must be C-17 (Claims 1), and

     (b)  has acted as an adjuster for at least 24 consecutive months.

(4)  It is a condition of a level 1 and level 2 adjuster's certificate of
authority that the holder be subject to the direct supervision of a holder
of a level 3 adjuster's certificate of authority and that all reports in
relation to the adjustment of claims by the holder of the level 1 or level
2 adjuster's certificate of authority be approved and countersigned by that
holder of a level 3 adjuster's certificate of authority.

(5)  An individual is not eligible to apply for a level 3 adjuster's
certificate of authority unless the individual has successfully met the
level 2 requirements and

     (a)  is an Associate or Fellow of the Insurance Institute of Canada,

     (b)  has successfully completed the C-32 (Bodily Injury Claims) and
C-46 (Claims 2) courses of the Insurance Institute of Canada, and

     (c)  has acted as an adjuster for at least 60 consecutive months
within the 10-year period immediately preceding the date of application.

(6)  Despite subsection (1), an applicant is not required to pass an
examination referred to in that subsection if the applicant held an
adjuster's certificate of authority in the 2-year period before the receipt
by the Minister of the application for an adjuster's certificate of
authority. 

(7)  Despite subsections (1), (3) and (5), an individual is not required to
complete a course, program or pass an examination referred to in those
subsections if

     (a)  the individual is not a resident of Alberta and is licensed as
an insurance adjuster in the individual's home jurisdiction and provides
evidence from the appropriate licensing authority of that jurisdiction
certifying that the applicant has satisfactorily passed insurance courses,
programs and examinations that are equivalent to the courses, and program
and examination referred to in subsections (1), (3) and (5) and the
Minister is of the opinion that the courses, programs and examinations are
equivalent;

     (b)  the individual is applying for an adjuster's certificate of
authority limited to adjusting hail insurance losses only; 

     (c)  the individual had at least 10 years of claims adjusting
experience prior to January 1, 1990 and passed both an examination approved
by the Minister under subsection (1) and an oral examination approved by
the Insurance Adjusters' Council.


Operating from more than one office
23   A business that acts or offers to act as an adjuster and operates from
more than one office must have in each office at least one adjuster who
holds a level 2 adjuster's certificate of authority.


Designated representative
24(1)  This section establishes the requirements to be met by a designated
representative of a business and a sole proprietorship who holds an
adjuster's certificate of authority.

(2)  A designated representative of a business must

     (a)  be an individual,

     (b)  be an Associate or Fellow of the Insurance Institute of Canada,

     (c)   hold a level 3 adjuster's certificate of authority, and

     (d)  have responsibility for the management and supervision of the
business. 

(3)  In order for a sole proprietor to hold an adjuster's certificate of
authority, the sole proprietor must meet the requirements of subsection
(2).

(4)  Subsection (2)(b) and (c) do not apply to a designated representative
of a business who is issued an adjuster's certificate of authority under
section 19(4).


Condition
25   If the Minister is satisfied that the holder of an adjuster's
certificate of authority has demonstrated incompetence to act as an
adjuster, one of the conditions that the Minister may impose under section
480(1) of the Act is that the adjuster's certificate of authority will not
be renewed or reinstated unless the individual who held the adjuster's
certificate of authority takes an examination or courses approved by the
Minister and achieves a mark specified by the Minister.


     PART 3

     GENERAL

     Prescribed Matters

Prescribed amounts
26(1)  The prescribed amount for the purpose of section 460 of the Act is
$15 000 in the case of contracts covering damage to property including
automobiles.

(2)   The prescribed amount for the purpose of section 65 of the Act is $10
000.


Prescribed enterprises
27   The following are prescribed enterprises under section 454 of the Act: 

     (a)  sales finance companies; 

     (b)  customs brokers licensed under the Customs Act (Canada);

     (c)  freight-forwarding companies.


     Special Broker

Condition
28(1)  It is a condition of a special broker's licence that the special
broker must disclose to the prospective insured before the insurance
transaction is entered into that the insurer underwriting the insurance is
not licensed in Alberta.

(2)  It is a condition of a special broker's licence that, in the case of
surety insurance, the special broker must disclose if the insurance is to
be provided by an unlicensed insurer

     (a)  to the principal, before the surety insurance is issued, and

     (b)  to the obligee, within 7 days of the surety insurance being
issued.


     Continuing Education

Continuing education program
29(1)  The Accreditation Committee for the purposes of this Part is the
Accreditation Committee appointed by the Minister pursuant to the
Government Organization Act. 

(2)  The Minister may, based on the recommendations of the Accreditation
Committee, approve continuing education courses for a certificate and
continuing education providers and the hours and means of calculating the
hours of the courses for the purposes of this Part, subject to any terms
and conditions imposed by the Minister.

(3)  The Minister must maintain a list of courses approved as continuing
education courses for a certificate and a list of persons approved as
continuing education providers and may require information from the
continuing education providers that is necessary for the purposes of this
Part.


Continuing education requirements
30(1)  Commencing February 16, 2002, an individual who holds an insurance
agent's certificate of authority must each year complete at least 15 hours
of the continuing education courses approved under section 29 with respect
to the certificate of authority.

(2)  Subsection (1) does not apply to an individual who holds an insurance
agent's certificate of authority limited to hail insurance or livestock
insurance.

(3)  Commencing June 1, 2002, an individual who holds an adjuster's level
1, 2 or 3 certificate of authority  must each year complete at least 15
hours of the continuing education courses approved under section 29 with
respect to the adjuster's certificate of authority.

(4)  Subsection (1) does not apply to a non-resident individual who holds a
certificate of authority to operate in Alberta if the individual is a
resident of and is registered in another jurisdiction that has a continuing
education requirement satisfactory to the Accreditation Committee.


Records
31   An individual who holds a certificate of authority must maintain a
record of continuing education requirements completed by that person and
must provide a copy of the record when requested by the Minister.


Course credit
32   If an individual holds more than one certificate of authority, any of
the completed continuing education courses approved under section 29 for a
certificate completed by the individual may be applied to the continuing
education requirements of the certificates that person holds, if the
courses are approved for those certificates.


     Financial Guarantee

Errors and omissions insurance
33(1)  The financial guarantee required by the Act is a policy of insurance
against errors and omissions that meets the requirements of this section.

(2)  The policy must be issued by a licensed insurer and be in a form and
contain the terms, conditions, definitions and exclusions approved by the
Minister including the period after the term of the policy in which claims
may be made.

(3)  The policy must provide coverage for errors and omissions for which a
claim is made during the term of the policy.

(4)  If a claimant has a claim resulting from a judgment or from an
agreement between the insurer and the claimant against the insured for an
error or omission, the insurer must pay the proceeds from the policy
directly to the claimant and may recover any amount equating to the
deductible from the insured under a reimbursement agreement between the
insurer and the insured.

(5)  The insurer must provide 60 days' advance notice to the Minister by
certified mail of the cancellation or non-renewal of the policy or any
change whereby the policy does not meet the form and contents required
under subsection (2). 


Existing insurance
34   If an insurance agent offers financial services other than insurance
and has errors and omissions insurance in respect of the other financial
services, the policy of errors and omissions insurance required by section
33 in respect of the insurance agent must be separate and distinct from the
errors and omissions insurance in respect of the other financial services,
but may be provided within one policy of insurance.


Amount of insurance
35(1)  The errors and omissions insurance required in respect of an
individual who holds a certificate of authority, other than a restricted
certificate, must provide coverage of at least $500 000 per claim, and the
policy must be issued in the individual's name or in the name of the
business of which the individual is an employee or independent contractor,
and the insurance must provide coverage for the employee or individual
contractor, as the case may be.

(2)  The errors and omissions insurance required in respect of a business
that holds a certificate of authority, other than a restricted certificate,
must provide coverage of at least $500 000 per claim, and the insurance
referred to in this subsection is separate and distinct from the insurance
referred to in subsection (1).

(3)  The errors and omissions insurance required in respect of a business
that holds a restricted certificate must provide coverage of at least $500
000 per claim multiplied by the number of employees of the business who act
or offer to act as insurance agents, up to a maximum of 5.


Exception to financial guarantee requirements
36   Section 465 of the Act does not apply to a business that 

     (a)  holds a restricted certificate, and

     (b)  is a deposit-taking institution.


     PART 4

     TRANSITIONAL PROVISIONS, REPEALS,
     EXPIRY AND COMING INTO FORCE

Transitional
37(1)  Despite section 22(1), (3) and (5) and subject to this section, on
the coming into force of this Regulation, an adjuster's certificate of
authority under Part 16 of the former Insurance Act

     (a)  that is a level 1 certificate of authority is continued as a
level 1 certificate of authority;

     (b)  that is a level 2 or 3 certificate of authority is continued as
a level 2 certificate of authority;

     (c)  that is a level 4 certificate of authority is continued as a
level 3 adjuster's certificate of authority;

     (d)  that is a level 5 certificate of authority is continued as a
level 3 adjuster's certificate of authority and the holder is deemed to be
a designated representative until May 31, 2002 and is deemed to meet the
requirements of section 24(2)(b) as long as the holder is the designated
representative of the business that employs the holder when this Regulation
comes into force.

(2)  An adjuster who held a certificate of authority within the one-year
period immediately before the coming into force of this Regulation may
apply for a new certificate of authority at any time within one year of the
date on which the certificate of authority was no longer in force and may
be issued a new certificate of authority at the level specified in
subsection (1) as if the adjuster held a certificate of authority on the
date this Regulation comes into force, provided that the adjuster meets the
requirements of section 21(2).


Transitional
38(1)  On the coming into force of this Regulation, a recommendation under
section 511 of the former Insurance Act is deemed to be a recommendation
under section 458 of the Insurance Act (SA 1999 cI-5.1), in the case of
life insurance or under section 459(1), (2), (3)(b) or (4) of the Insurance
Act (SA 1999 cI-5.1), in the case of property and casualty insurance.

(2)  On the coming into force of this Regulation, an individual who holds a
certificate of authority that requires a recommendation of a designated
representative under section 459(3)(a) or 464 of the Act is deemed to be
recommended by the designated representative of the business that the
individual represents.

(3)  On the coming into force of this Regulation, an individual who is
designated under section 508(3) of the former Insurance Act is deemed to be
the designated representative of the business under section 456 of the
Insurance Act (SA 1999 cI-5.1).


Repeal
39   The Insurance Agents and Adjusters Regulation (AR 32/89) is repealed.


Expiry
40   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
41(1)  This Regulation, except for sections 33 to 36, comes into force on
the coming into force of any section of the Insurance Act (SA 1999 cI-5.1).

(2)  Sections 33 to 36 come into force on the coming into force of section
465 of the Insurance Act (SA 1999 cI-5.1).


     Alberta Regulation 123/2001

     Insurance Act

     RECIPROCAL INSURANCE EXCHANGE REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 123/2001) on July 11, 2001
pursuant to section 106 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Definition     1
Automobile insurance     2
Fire insurance 3
Guarantee fund 4
Expiry    5


Definition
1   In this Regulation, "Act" means the Insurance Act (SA 1999 cI-5.1).


Automobile insurance
2(1)  For the purpose of section 82(2)(a) of the Act, the prescribed number
of automobiles is 500.

(2)  For the purpose of section 82(2)(b) of the Act, the prescribed limit
is $1 000 000.


Fire insurance
3   For the purpose of section 83 of the Act,

     (a)  the prescribed number of separate fire insurance risks in
Alberta or elsewhere is 75, and

     (b)  the prescribed aggregate amount is $1 500 000.


Guarantee fund
4   For the purpose of the formula set out in section 100(1) of the Act, C
is $50 000.


Expiry
5   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
6   This Regulation comes into force on the coming into force of any
section of the Act.


     Alberta Regulation 124/2001

     Insurance Act

     PROVINCIAL COMPANIES REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 271/2001) on July 11, 2001
pursuant to section 123 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

     Part 1
     Protection and Maintenance of Assets

Definitions    1
Procedures to safeguard assets     2
Record of securities     3
Safeguarding of securities    4
Accounts  5
Registration of securities    6
Bonding and insurance    7

     Part 2
     Investments

Interpretation 8
Method of valuation 9
International agencies   10
Meaning of "connected"   11
Investment maximums 12
Exceptions to prohibited investments    13
Leasing and related agreements     14
Limitation on shareholding    15
Meaning of "interest in real property"  16
Additional interest in real property    17
Exception to s424 of Act 18
Prescribed subsidiaries  19
Limits on equity acquisitions 20

     Part 3
     Transactions with Related Parties

Interpretation 21
Meaning of "related party"    22
Prescribed matters under s439 of Act    23
Prescribed securities under s440(e) of Act   24
Prescribed conditions under s440(g) of Act   25
Prescribed qualifications and purposes under
   s440(j) of Act   26
Permitted transactions under s440(m) of Act  27
Related party transactions prescribed limits 28

     Part 4
     Repeal, Expiry and Coming into Force

Repeal    29
Expiry    30
Coming into force   31

Schedule


     PART 1

     PROTECTION AND MAINTENANCE OF ASSETS

Definitions
1   In this Part,

     (a)  "Act" means the Insurance Act (SA 1999 cI-5.1);

     (b)  "bond" means a contract of insurance by which an insurer agrees
to indemnify an insured for loss arising out of the act of a third party;

     (c)  "security" has the meaning given to it in the Securities Act.


Procedures to safeguard  assets
2   The board of directors of a provincial company must ensure that there
are written procedures in place designed to safeguard assets owned or held
by the company and that the procedures are followed by the company.


Record of securities
3   A provincial company must maintain an up-to-date record that identifies
securities owned or held by the company.


Safeguarding of securities
4(1)  A provincial company must ensure that securities owned or held by the
company

     (a)  are kept secure and in a manner that prevents unauthorized
access to them, and

     (b)  are stored in the custody

               (i)  of the company, or

               (ii) of an entity that is authorized by the law of the
jurisdiction where the entity is carrying on business to act as a
custodian, depository or clearing agency for securities.

(2)  Subsection (1) does not apply in respect of a security that is

     (a)  under the control of the government of a jurisdiction in which
the provincial company is carrying on business,

     (b)  pledged as collateral for indebtedness or potential
indebtedness of the provincial company, or

     (c)  in transit or being held temporarily by a court or a legal
agent of the provincial company.

(3)  A provincial company must not place a security in the custody of an
entity referred to in subsection (l)(b)(ii) unless the company has entered
into a written custodial agreement with that entity.


Accounts
5   A provincial company must, on a daily basis, hold any net amount
received by it as a result of any security transaction in an account in
Canada kept by the company

     (a)  in the company,

     (b)  with a bank,

     (c)  with Alberta Treasury Branches,

     (d)  with any of the following that is incorporated by or under an
Act of Canada or a province:

               (i)  a loan corporation or a trust corporation;

               (ii) a credit union;

               (iii)     an entity that is engaged primarily in dealing in
securities, including portfolio management and investment counselling,

     (e)  with any other trust corporation that is incorporated by or
under an Act of Canada or a province and that is authorized to hold money
in trust by a law of that jurisdiction,

     (f)  with the government of a province in which the company is
carrying on business, or with an agency of that government that is
authorized to act as a custodian, or

     (g)  with The Canadian Depository for Securities Limited.


Registration of securities
6(1)  A provincial company must ensure that each security owned or held by
it is registered in the name of the provincial company on the register of
the entity that issued the security.

(2)  Subsection (1) does not apply in respect of a security that

     (a)  cannot be registered in the company's name for any reason that
is beyond the control of the company,

     (b)  is under the control of the government of a jurisdiction in
which the company is carrying on business,

     (c)  is held by the company as collateral or for safekeeping,

     (d)  is registered in the name of a nominee of the company or of
another entity referred to in section 4(1)(b)(ii),

     (e)  is held under a book entry, certificateless or immobilization
system,

     (f)  is held temporarily by

               (i)  an agent of the company,

               (ii) a liquidator,

               (iii)     a trustee, or

               (iv) the issuer of the security

          for purposes of reorganization, amalgamation, liquidation or
voting, or

     (g)  is held by the company in bearer form or in registered form in
a name other than the company's name, if the security is otherwise
protected against loss, fraud, theft and destruction.


Bonding and insurance
7(1)  A provincial company must acquire and at all times maintain one or
more bonds issued by an entity holding a licence that indemnify the company
for any loss in respect of assets owned or held by the company arising out
of a dishonest or criminal act of an officer or employee of the company.

(2)  A provincial company must acquire and at all times maintain one or
more insurance policies that indemnify the company for

     (a)  any loss arising out of damage to, or the destruction or
mysterious disappearance of, assets owned or held by the company, or

     (b)  any loss arising out of any other usual contingency affecting
assets owned or held by the company.

(3)  A bond referred to in subsection (1) or an insurance policy referred
to in subsection (2) must provide that it may not be cancelled or
terminated by the insurer or the insured until at least 30 days after the
receipt by the Superintendent of a written notice from the insurer or the
insured, as the case may be, of that person's intention to cancel or
terminate the bond or insurance policy.

(4)  The bond or insurance policy must be in an amount that is fixed by the
directors of the provincial company having regard to

     (a)  the nature and value of the assets owned or held by the
company,

     (b)  the arrangements and procedures applicable to the handling and
safeguarding of the assets owned or held by the company, and

     (c)  any other factors that might affect the extent of any loss that
the company might sustain.


     PART 2

     INVESTMENTS

Interpretation
8(1)  In this Part,

     (a)  "Act" means the Insurance Act (SA 1999 cI-5.1);

     (b)  "generally accepted accounting principles" means the generally
accepted accounting principles, including the accounting recommendations,
of the Canadian Institute of Chartered Accountants set out in the Handbook
published by that Institute, as amended from time to time;

     (c)  "securities dealer" means a body corporate that is registered
as a dealer under the Securities Act or in a similar capacity under
comparable legislation of another jurisdiction in Canada.

(2)  The definitions in section 415 of the Act apply to this Part.

(3)  The aggregate prescribed amount for the purpose of section
415(a)(i)(A) of the Act is $250 000.


Method of valuation
9   For the purpose of section 44(4) of the Act, the assets of a provincial
company, including investments, must be valued in accordance with generally
accepted accounting principles.


International agencies
10   For the purposes of sections 415(a)(i)(B) and 415(a)(ii)(B) of the
Act, the following are prescribed international agencies:

     (a)  Asian Development Bank;

     (b)  Inter-American Bank;

     (c)  International Bank for Reconstruction and Development;

     (d)  International Finance Corporation;

     (e)  European Bank for Reconstruction and Development.


Meaning of "connected"
11   For the purpose of section 415(b) of the Act, a person is connected to
another person if

     (a)  one of them is an affiliate of the other, or

     (b)  in respect of a loan by a third party to both of those persons
or an investment by a third party in both of those persons,

               (i)  the loans or investments are for the same purpose,

               (ii) the expected source of repayment on the loans or
investments is the same, or

               (iii)     the security for the loans or investments is the
same,

and those persons are not to a material extent financially independent of
each other.


Investment maximums
12(1)  Subject to subsection (2), the prescribed percentage for the purpose
of section 418(1) of the Act is 5%.

(2)  For commercial loans, the prescribed percentage for the purpose of
section 418(1) of the Act is 2%.


Exceptions to prohibited investments
13   The other prescribed investments for the purpose of section 418(2)(e)
of the Act are the following:

     (a)  any deposit with or any debt obligation or acceptance of any of
the following where the deposit, debt obligation or acceptance has a
residual maturity of less than one year:

               (i)  a bank;

               (ii) Alberta Treasury Branches;

               (iii)     a loan corporation or trust corporation
incorporated by or under an Act of Canada or a province;

               (iv) a credit union incorporated under the Credit Union
Act;

     (b)  any deposit with any of the following that control the
provincial company:

               (i)  a bank;

               (ii) Alberta Treasury Branches;

               (iii)     a loan corporation or trust corporation
incorporated by or under an Act of Canada or a province;

               (iv) a credit union incorporated under the Credit Union
Act;

     (c)  any foreign exchange, interest rate, equity or commodity
contract with any of the following where the contract has a residual
maturity of less than one year:

               (i)  a bank;

               (ii) Alberta Treasury Branches;

               (iii)     a loan corporation or trust corporation
incorporated by or under an Act of Canada or a province;

               (iv) a credit union incorporated under the Credit Union
Act;

     (d)  any foreign exchange, interest rate, equity or commodity
contract, in the normal course of business, with a financial institution
that controls the provincial company or is affiliated with the provincial
company;

     (e)  any direct obligation of and that portion of any obligation
fully and unconditionally guaranteed by any of the following:

               (i)  a municipality or Metis settlement or an agency of
a municipality or Metis settlement;

               (ii) a government that is a member of the Organization
of Economic Development and Cooperation or an agency of that government;

               (iii)     an international agency listed in section 10.


Leasing and related agreements
14(1)  In this section,

     (a)  "agreement" means

               (i)  a security agreement as defined in the Personal
Property Security Act, or

               (ii) a financial lease agreement, being an agreement for
a lease of personal property in which credit is extended by the lessor to
the lessee for the purpose of enabling the lessee to meet the lessee's
obligations under the lease;

     (b)  "property" means the personal property to which an agreement
relates.

(2)  A provincial company must not beneficially own shares in a financial
leasing corporation described in section 15(b) unless

     (a)  the aggregate of

               (i)  the book value of all of the property that is
subject to agreements held by the financial leasing corporation, and

               (ii) all amounts owing as receivables in respect of such
agreements

          is equal to at least 80% of the assets of the subsidiary, and

     (b)  the financial leasing corporation meets the requirements of the
agreements.

(3)  A provincial company may enter into or acquire agreements only if the
following requirements are met: 

     (a)  the company must not direct its customers or potential
customers to particular dealers in the property;

     (b)  at no time may the aggregate of the estimated residual values
of all the property of the company, excluding motor vehicles, leased under
the financial lease agreements exceed 10% of the aggregate of the costs of
acquisition of that leased property to the company;

     (c)  the estimated residual value of property leased under a
financial lease agreement must not exceed,

               (i)  in the case of motor vehicles, 50% of their cost of
acquisition, or

               (ii) in the case of any other property, 20% of its cost
of acquisition to the company;

     (d)  the agreement must be entered into or acquired for the purpose
of extending credit to the lessee or purchaser;

     (e)  the property that is the subject of the agreement must be
selected by the lessee or buyer and

               (i)  must be acquired by the company at the request of
the lessee or buyer, or

               (ii) must have been acquired by the company through the
operation of an earlier agreement;

     (f)  the agreement must yield a return that

               (i)  will compensate the company for not less than its
full investment in the property,

               (ii) is reasonable, taking into account

                         (A)  the term of the agreement and the other
terms and conditions of it,

                         (B)  the technological obsolescence of the
property, and

                         (C)  the rate of return sought by other
lessors in respect of similar agreements in respect of similar property and
under the same terms and conditions,

               and

               (iii)     is calculated by taking into account

                         (A)  rental charges paid by the lessee or
purchaser,

                         (B)  estimated tax benefits of the agreement
to the company, including tax credits and capital cost allowance claims,
and

                         (C)  the amount of,

                                   (I)  where the lessee or
purchaser or a third party who is dealing at arm's length with the company
has, on or before the commencement of the agreement, contracted to purchase
the property or unconditionally guaranteed the resale value of the property
at the date of expiry of the agreement, the purchase price or the resale
value so guaranteed, or

                                   (II) in any other case, but
subject to clause (c), the estimated residual value of the property;

     (g)  the agreement must contain a provision

               (i)  assigning and conveying to the lessee or purchaser
the benefit of all warranties, guarantees or other undertakings made by a
manufacturer or supplier relating to the property, or

               (ii) setting out the responsibilities of the company
with regard to the warranties, guarantees or other undertakings referred to
in subclause (i);

     (h)  the agreement must substantially transfer to the lessee or
purchaser the benefits and risks incidental to the operation of the
property and must not place responsibility on the part of the company to
install, promote, service, clean, maintain or repair the property;

     (i)  where the lessee or purchaser defaults in the manner set out in
the agreement and the default is not waived or the agreement, including any
renewals or extensions of it, expires, the company must

               (i)  liquidate its interest in the property, or

               (ii) enter into a new agreement in respect of that
property within 2 years of that default or expiry or, where proceedings in
respect of that property have prevented the company from complying with
that requirement within that period, within 2 years of the completion of
those proceedings.

(4)  An agreement may be renewed on its expiry and may be extended during
its term.


Limitation on shareholding
15   The following are prescribed bodies corporate for the purpose of
section 421(3)(e) of the Act:

     (a)  a factoring corporation, being a body corporate whose
activities are limited to acting as a factor in relation to accounts
receivable, including the lending of money and the raising of money for the
purpose of financing those activities;

     (b)  a financial leasing corporation, being a body corporate that
enters into or acquires agreements as defined in section 14(1)(a) of this
Regulation;

     (c)  an information management corporation, being a body corporate
that carries on the business of

               (i)  the collection, manipulation and transmission of
information that is primarily financial or economic in nature, or

               (ii) the sale of related software;

     (d)  an investment counselling corporation, being a body corporate
that is registered as an investment counsel under the Securities Act or in
a similar capacity under comparable legislation in another jurisdiction in
Canada;

     (e)  a mutual fund corporation, being a body corporate whose
activities are limited to the investing of the funds of the body corporate
or a body corporate that is an issuer of securities that entitle the holder
to receive, on demand or within a specified period after demand, an amount
computed by reference to the value of a proportionate interest in the whole
or in a part of the net assets, including a separate fund or trust account,
of the issuer of those securities;

     (f)  a mutual fund distribution corporation, being a body corporate
that is registered as a mutual fund dealer under the Securities Act or in a
similar capacity under comparable legislation in another jurisdiction in
Canada;

     (g)  a portfolio management corporation, being a body corporate that
is registered as a portfolio manager under the Securities Act or in a
similar capacity under comparable legislation in another jurisdiction in
Canada; 

     (h)  a real property brokerage corporation, being a body corporate
whose activities are limited to acting as an agent for vendors or
purchasers of real estate;

     (i)  a real property corporation, being a body corporate that is
primarily engaged in holding, managing or otherwise dealing with

               (i)  real property, or

               (ii) shares of a body corporate or ownership interests
in an unincorporated entity that is primarily engaged in holding, managing
or otherwise dealing with real property, including another real property
corporation or a real property holding vehicle;

     (j)  a real property holding vehicle, being a limited partnership or
a trust that is primarily engaged in holding, managing or otherwise dealing
with

               (i)  real property, or

               (ii) shares of a body corporate or ownership interests
in an unincorporated entity that is primarily engaged in holding, managing
or otherwise dealing with real property, including a real property
corporation or another real property holding vehicle;

     (k)  a securities dealer;

     (l)  a service corporation, being a body corporate whose activities
are limited to the provision of management services to

               (i)  a provincial company,

               (ii) a financial institution that is affiliated with a
provincial company, or

               (iii)     a body corporate in which a provincial company or
financial institution that is affiliated with a provincial company holds or
beneficially owns, separately or in the aggregate, more than 50% of the
issued and outstanding voting shares;

     (m)  a specialized financing corporation, being a body corporate
that is primarily engaged in providing specialized business management in
making investments or providing financing or advisory services.


Meaning of "interest in real property"
16   For the purposes of sections 427 and 429 of the Act, "interest in real
property" means

     (a)  an interest in real property that, under the generally accepted
accounting principles, would be shown as real property owned by the
provincial company in its financial statements,

     (b)  an ownership interest, including shares, in a real property
corporation or a real property holding vehicle that is not a joint venture
and in which the provincial company or a subsidiary of the company that is
not a financial institution has a substantial interest,

     (c)  a debt obligation issued by a real property corporation or a
real property holding vehicle that is not a joint venture and in which the
provincial company or a subsidiary of the company that is not a financial
institution has a substantial interest, and beneficially owned by the
company or a subsidiary of the company that is not a financial institution,

     (d)  a loan to a real property corporation or a real property
holding vehicle that is not a joint venture and in which the provincial
company or a subsidiary of the company that is not a financial institution
has a substantial interest, where the loan is made by the company or a
subsidiary of the company that is not a financial institution,

     (e)  a loan to

               (i)  a real property corporation or a real property
holding vehicle in which a financial institution controlled by the
provincial company has a substantial interest, where the loan is made by
the company or a subsidiary of the company that is not a financial
institution, and

               (ii) a real property corporation or a real property
holding vehicle that is controlled by a real property corporation or a real
property holding vehicle described in subclause (i) where the loan is made
by the provincial company or a subsidiary of the company that is not a
financial institution,

     (f)  a debt obligation issued by a real property corporation or a
real property holding vehicle described in clause (e) and beneficially
owned by the provincial company or a subsidiary of the company that is not
a financial institution,

     (g)  a debt obligation issued by a real property corporation or a
real property holding vehicle that is not a joint venture and in which the
provincial company or a subsidiary of the company that is not a financial
institution has a substantial interest, and beneficially owned by a third
party and guaranteed by the company or a subsidiary of the company that is
not a financial institution, or

     (h)  a loan made by a third party to a real property corporation or
a real property holding vehicle and guaranteed by the provincial company or
a subsidiary of the company that is not a financial institution,

but does not include an interest in real property owned by a financial
institution or by an entity controlled by the financial institution, where
the financial institution is controlled by the provincial company.


Additional interest in real property
17(1)  In this section,

     (a)  "designated entity" means an entity other than

               (i)  a joint venture,

               (ii) a financial institution, or

               (iii)     an entity that is controlled by a financial
institution;

     (b)  "real property corporation" means a body corporate described in
section 15(i);

     (c)  "real property holding vehicle" means a limited partnership or
trust described in section 15(j);

     (d)  "related real property entity", in respect of a provincial
company, means

               (i)  a real property corporation or a real property
holding vehicle, other than a designated entity controlled by the company,
in which the company or a designated entity controlled by the company
beneficially owns sufficient shares or ownership interests to cause the
company or designated entity to have a substantial interest in the real
property corporation or real property holding vehicle, or

               (ii) a real property corporation or a real property
holding vehicle that is controlled by a real property corporation or a real
property holding vehicle described in subclause (i).

(2)  For the purposes of sections 427 and 429 of the Act, where a
provincial company or a designated entity controlled by a provincial
company makes a loan to, or beneficially owns or guarantees the debt
obligation of, a third party, the loan or debt obligation is an interest of
the company in real property if it is secured by

     (a)  real property beneficially owned by a third party in
conjunction with

               (i)  the company,

               (ii) the designated entity,

               (iii)     a related real property entity of the company,

               (iv) a financial institution controlled by the company,

               (v)  an entity controlled by a financial institution
referred to in subclause (iv), or

               (vi) a real property entity described in section
16(1)(e),

     or

     (b)  shares or ownership interests beneficially owned by a third
party in

               (i)  an entity that beneficially owns real property in
conjunction with the company, a related real property entity of the company
or a designated entity that is controlled by the company, or

               (ii) a related real property entity of the company.


Exception to s424 of Act
18   For the purpose of section 424(3) of the Act, section 424(1) of the
Act does not apply to interests in real property described in section 16 of
this Regulation that are acquired by a provincial company or any of its
subsidiaries as a result of a realization of a security interest.


Prescribed subsidiaries
19   For the purposes of sections 426, 427, 428 and 429 of the Act, every
subsidiary of a provincial company is a prescribed subsidiary of that
company except

     (a)  a subsidiary that is a financial institution, or

     (b)  a subsidiary of a financial institution. 


Limits on equity acquisitions
20   For the purpose of section 428 of the Act, the prescribed percentage
of the total assets of the provincial company is 20%. 


     PART 3

     TRANSACTIONS WITH RELATED PARTIES

Interpretation
21(1)  In this Part, "Act" means the Insurance Act (SA 1999 cI-5.1).

(2)   For the purpose of section 433(1)(c)(vii) of the Act, a senior
official of a body corporate includes

     (a)  each of the 5 highest paid employees of the body corporate,

     (b)  branch managers of the body corporate, and

     (c)  other persons who perform for the body corporate functions that
are normally performed by a branch manager.


Meaning of "related party"
22   Notwithstanding section 434(2) of the Act,

     (a)  a financial institution that wholly owns a provincial company,
and

     (b)  a subsidiary of a provincial company that is wholly owned by
the company

are related parties of that provincial company for the purposes of

     (c)  a transfer of real estate or securities between the provincial
company and a related party of the company, or

     (d)  a transaction, guarantee or investment that involves the
provincial company and a related party of the company that is not at fair
market rate.


Prescribed matters under s439 of Act
23(1)  A provincial company or a subsidiary of a provincial company may
enter into a transaction under section 439(1)(c)(i) of the Act if the
purpose of the transaction is

     (a)  to support the short-term liquidity needs of the provincial
company or subsidiary or the related party, or

     (b)  to enable the clearance of cheques.

(2)  A provincial company or a subsidiary of a provincial company may enter
into a transaction under section 439(1)(c)(ii) of the Act if the
transaction consists of the acquisition of securities in which the
provincial company or subsidiary is permitted to invest under Subpart 11 of
the Act, other than securities issued by a related party.


Prescribed securities under s440(e) of Act
24   For the purpose of section 440(e) of the Act, a provincial company or
its subsidiary may

     (a)  sell to or redeem from a related party other than a subsidiary
the provincial company's or subsidiary's own subordinated notes, debentures
or shares, and

     (b)  sell to or acquire from a related party the following
securities:

               (i)  securities that are issued or guaranteed by the
Government of Canada or the government of a province or by any of their
agencies, or issued by a university, a municipality, a Metis settlement or
a hospital or school board in Canada;

               (ii) debt securities including banker's acceptances,
(other than subordinated debt securities) that are issued or guaranteed by
a financial institution duly authorized to take deposits in Canada;

               (iii)     bonds, debentures or commercial paper issued by a
body corporate incorporated in Canada that have, at the date of acquisition
or sale, a rating in accordance with the table in the Schedule. 


Prescribed condition under s440(g) of Act
25   A loan may be made or a guarantee may be given under section 440(g) of
the Act only if the loan or guarantee is fully secured by one or more of
the following:

     (a)  real estate valued at fair market rate at the time of the loan
or guarantee, or securities that have a rating in accordance with the table
in the Schedule at the time of the loan or guarantee;

     (b)  securities that are issued or fully guaranteed by the
Government of Canada or of a province or by a municipality or Metis
settlement;

     (c)  securities evidencing deposits with a deposit-taking
institution other than one that is a related party;

     (d)  bonds, debentures or commercial paper issued by a body
corporate incorporated in Canada, other than a financial institution that
is a related party, that have, at the date of acquisition, a rating in
accordance with the table in the Schedule.


Prescribed qualifications and purposes under s440(j) of Act
26   A loan may be made under section 440(j) of the Act

     (a)  only if the loan is fully secured by securities of the
following type:

               (i)  securities that are issued or fully guaranteed by
the Government of Canada or of a province or by a municipality or Metis
settlement;

               (ii) securities evidencing deposits with a
deposit-taking institution other than one that is a related party;

               (iii)     bonds, debentures or commercial paper issued by a
body corporate incorporated in Canada, other than a financial institution
that is a related party, that have, at the date of acquisition, a rating in
accordance with the table in the Schedule,

     and

     (b)  only if the loan is made for the purpose of supporting the
short-term liquidity needs of the provincial company or its subsidiary.


Permitted transactions under s440(m) of Act
27(1)  The other transactions referred to in section 440(m) of the Act are
the following:

     (a)  a swap or a similar agreement;

     (b)  an agreement for the purchase or sale of financial futures,
options or forward contracts with a securities dealer that is a related
party if the securities dealer is acting as agent, not as principal, and
the transaction is at fair market rate;

     (c)  a transaction with a securities dealer that is a related party
involving the underwriting of the provincial company's securities or the
provision of other services associated with a primary distribution of the
company's securities.

(2)  Where a provincial company enters into a swap with another party
(referred to as the counter-party), the counter-party must be an issuer of
and have issued debt securities that are outstanding and having a rating in
accordance with the table in the Schedule.

(3)  In this section,

     (a)  "financial future" means a contract to buy or sell a standard
quantity of a specified financial instrument on or before a specified
future date at an agreed price;

     (b)  "forward contract" means a contract to buy or sell currency or
a specified financial instrument on or before a specified future date at an
agreed price;

     (c)  "option" means a contract under which a person acquires the
right to buy or sell a particular security at a specified future date at an
agreed price;

     (d)  "swap" means an agreement between 2 parties whereby one party
offers to pay specified obligations of another party and in exchange the
other party agrees to pay specified obligations of the first party.


Related party transactions prescribed limits
28   The following are the prescribed limits for the purpose of section 444
of the Act:

     (a)  the aggregate of

               (i)  the outstanding principal and interest owing on all
loans by a provincial company to related parties of the company,

               (ii) the book value of all current investments by a
provincial company in the securities of related parties of the company, and

               (iii)     the contracted amount of all outstanding guarantees
made or entered into by a provincial company on behalf of related parties
of the company

          must not exceed 10% of the provincial company's total assets;

     (b)  a provincial company must not allow the aggregate amount of its
liability in respect of deposits received by it from financial institutions
that are related parties of the company to exceed 2% of the company's total
assets.


     PART 4

     REPEAL, EXPIRY AND COMING INTO FORCE

Repeal
29   The Provincial Companies Regulation (AR 289/96) is repealed.


Expiry
30   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
31   This Regulation comes into force on the coming into force of any
section of the Insurance Act (SA 1999 cI-5.1).


     SCHEDULE

     TABLE OF SECURITIES' RATINGS

Rating    Commercial     Bonds and Preferred
Organization   Paper     Debentures     Shares

Canadian Bond
Rating Service      A - 1     A    P - 2

Dominion Bond
Rating Service R - 1     A    Pfd - 2

Standard            Not
and Poors A - 1     A    applicable

Moody's   P - 1     A    a


     ------------------------------

     Alberta Regulation 125/2001

     Insurance Act

     CERTIFICATE EXPIRY, PENALTIES AND FEES REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 272/2001) on July 11, 2001
pursuant to section 498 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

     Part 1
     Certificate Expiry

Expiry dates   1

     Part 2
     Fees

Fees 2
Certificate    3
Renewal   4
Insurer   5
Amendment, reinstatement 6
Status    7
Duplicate 8
Examination    9
Oral exam 10
Level 2 examination 11
Restricted insurance agent    12

     Part 3
     Penalties

Section 480 penalties    13

     Part 4
     Repeals, Expiry and Coming into Force

Repeal    14
Expiry    15
Coming into force   16


     PART 1

     Certificate Expiry

Expiry dates
1(1)  An insurance agent's certificate of authority issued, renewed,
amended or re-instated during the period from February 16 to the following
December 15 expires on February 15 following the date of its issue,
renewal, amendment or re-instatement.

(2)  An insurance agent's certificate of authority issued, renewed, amended
or re-instated during the period from December 16 to the following February
15 expires on February 15 of the year following the expiry of that period.

(3)  An adjuster's certificate of authority issued, renewed, amended or
re-instated during the period from June 1 to the following March 31 expires
on May 31 following the date of its issue, renewal, amendment or
re-instatement.

(4)  An adjuster's certificate of authority issued, renewed, amended or
re-instated during the period from April 1 to the following May 31 expires
on May 31 of the year following the expiry of that period.


     PART 2

     Fees

Fees
2   The fees in this Part apply to things done by an insurance council
under the authority of the Act.


Certificate
3   The fees payable by insurance agents for the issue or renewal of an
insurance agent's certificate of authority or for the amendment or
re-instatement during the period from December 16 to the following February
15 of a certificate of authority, are as follows:

      (a) to undertake general insurance
     $ 60;

(b)  to undertake life insurance
     $ 60;

(c)  to undertake accident and sickness insurance
     $ 25;

(d)  despite clause (a), to undertake general insurance limited to a
single class of insurance

     $ 25.



Renewal
4   The fee payable by adjusters for the issue or renewal of an adjuster's
certificate of authority or for the amendment or re-instatement during the
period from April 1 to the following May 31 of an adjuster's certificate is
$60. 


Insurer
5(1)   An insurer that

     (a)  is licensed on July 1 of each year must, subject to clause (c),
pay the Alberta Insurance Council a fee of $600 on July 1 of that year;

     (b)  becomes licensed after July 1 of that year but before July 1 of
the following year must pay a fee of $600 to the Alberta Insurance Council
on the date that it becomes licensed;

     (c)  becomes licensed between April 1 and June 30 and pays the fee
required under clause (b) is not required to pay a fee on July 1 of that
year.

(2)  The requirement to pay a fee under subsection (1) in a year does not
apply to a fraternal society if, in the preceding calendar year, the
society received premiums totalling less than $500 000 from its members
who, at the time of paying the premiums, were residents in Alberta.


Amendment, reinstatement
6   The fee payable for the amendment or reinstatement of an insurance
agent's certificate of authority during the period from February 16 to the
following December 15, or of an adjuster's certificate of authority during
the period from June 1 to the following March 31, is $10.


Status
7   The fee payable for a certificate stating the certificate of authority
status of an insurance agent or adjuster is $10. 


Duplicate
8   The fee payable for the issue of a duplicate certificate of authority
is $10. 


Examination
9   The fee payable by an insurance agent or adjuster to write the
respective qualifying examination is $25. 


Oral exam
10   The fee payable by insurance adjusters for oral examinations is $300.


Level 2 examination
11   The fee payable by insurance agents to write the qualifying
examination for a Level 2 life insurance certificate is $100.


Restricted insurance agent
12   The fee payable for a restricted insurance agent certificate of
authority is as follows and is based on the number of employees soliciting
insurance on behalf of the restricted insurance agent's business:

     (a)  1 - 4 employees     $100;

     (b)  5 - 10 employees    $175;

     (c)  11 - 15 employees   $325;

     (d)  16 - 20 employees   $450;

     (e)  21 - 99 employees   $600;

     (f)  100 - 249 employees $1000;

     (g)  250 - 499 employees $2500;

     (h)  500 - or more  $5000.


     PART 3

     Penalties

Section 480 penalties
13(1)   The amounts of penalties imposed under section 480(1) of the Act
are as follows:

     (a)  if there has been a finding of guilt referred to in section
480(1)(a) of the Act, $2500 for each offence;

     (b)  if there has been a finding relating to a contravention
referred to in section 480(1)(b) of the Act, $250 for each offence;

     (c)  if there has been a finding of failure referred to in section
480(1)(c) of the Act, $250 for each offence;

     (d)  if there has been a finding referred to in section 480(1)(d) of
the Act, $250 for each offence;

     (e)  if there has been a finding referred to in section 480(1)(e) of
the Act, $250 for each offence.

(2)  The rate of interest prescribed for the purposes of section 480 of the
Act is 12% per annum, prorated in respect of any part of a month, on the
unpaid balance.


     PART 4

     Repeals, Expiry and Coming into Force

Repeal
14   The Fees, Forms and Certificates Expiry Regulation (AR 478/81) is
repealed.


Expiry
15   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
16   This Regulation comes into force on the coming into force of  any
section of the Insurance Act (SA 1999 cI-5.1).


     ------------------------------

     Alberta Regulation 126/2001

     Insurance Act

     INSURANCE COUNCILS REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 273/2001) on July 11, 2001
pursuant to section 498 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Interpretation 1

     Insurance Councils

Composition of Alberta Insurance Council     2
Composition of Life Insurance Council   3
Composition of General Insurance Council     4
Composition of Insurance Adjusters' Council  5
Chair of councils   6
Becoming ineligible 7
Term 8
Delegation     9
Delegation to Alberta Insurance Council 10
Life, General and Adjusters' Councils   11
Inspection of records, etc.   12

     Appeals
Appeal Board   13
Becoming ineligible 14
Term 15
Notice of appeal    16
Panels    17
Remuneration, fees and expenses    18
Hearing and notice of hearing 19
Evidence - council's decision 20
Written submissions 21
Procedural fairness 22
Panel orders   23
Disposition of appeal fee     24
Requirements for order   25
Appeal to Court     26
Evidence  27
Court orders   28

     General Provisions and Elections

Eligibility for candidates    29
Nominations    30
Voter eligibility - council elections   31
Voter eligibility - Appeal Board elections   32
Election process    33
Alternate elected members     34

     Transitional Provisions, Repeals,
     Expiry and Coming into Force

Appeals continued   35
Repeal    36
Expiry    37
Coming into force   38


Interpretation
1(1)  In this Regulation,

     (a)  "Act" means the Insurance Act;

     (b)  "Appeal Board" means the Insurance Councils Appeal Board
established under section 13;

     (c)  "council" means an insurance council referred to in section 
493 of the Act;

     (d)  "former Act" means the Insurance Act, RSA 1980 cI-5;

     (e)  "general insurance" means insurance of any class or of all
classes, other than life insurance or accident and sickness insurance or
both;

     (f)  "panel" means a panel of the Appeal Board.

(2)  In this Regulation, a reference to a certificate of authority or
licence in relation to an eligibility requirement or condition to be a
member of a council or the Appeal Board or to be a voter in an election is
a reference to a certificate of authority or licence that is not suspended.


     Insurance Councils

Composition  of Alberta Insurance Council
2   The Alberta Insurance Council consists of the following 5 members:

     (a)  2 individuals appointed by the Lieutenant Governor in Council
who are resident in Alberta and who neither hold a certificate of authority
nor are employed by an insurer or a person who holds a certificate of
authority;

     (b)  one individual appointed by the Life Insurance Council who 

               (i)  holds an insurance agent's certificate of
authority, or is employed by a licensed insurer, and

               (ii) is a member of the Life Insurance Council;

     (c)  one individual appointed by the General Insurance Council who 

               (i)  holds an insurance agent's certificate of authority
or is employed by a licensed insurer, and

               (ii) is a member of the General Insurance Council;

     (d)  one individual appointed by the Insurance Adjusters' Council
who 

               (i)  holds an adjuster's certificate of authority or is
employed by a licensed insurer, and

               (ii) is a member of the Insurance Adjusters' Council.


Composition  of Life Insurance Council
3   The Life Insurance Council consists of the following 6 members:

     (a)  2 individuals appointed by the Lieutenant Governor in Council
who are resident in Alberta and neither hold a certificate of authority nor
are employed by an insurer or by a person who holds a certificate of
authority;

     (b)  2 individuals appointed by the Canadian Life and Health
Insurance Association Inc. who are resident in Alberta, engaged in the life
insurance business and employed by an insurer licensed to undertake life
insurance;

     (c)  2 individuals elected in accordance with this Regulation who
are resident in Alberta, are not employed by an insurer licensed to
undertake life insurance, are engaged in the life insurance business and

               (i)  hold insurance agents' certificates of authority to
act as life insurance agents, and

               (ii) have held the insurance agents' certificates of
authority or have been designated in the certificates or designated under
the Act for the 5 years before the election.


Composition of General Insurance Council
4   The General Insurance Council consists of the following 8 members:

     (a)  2 individuals appointed by the Lieutenant Governor in Council
who are resident in Alberta and do not hold  certificates of authority nor
are employed by an insurer or by a person who holds a certificate of
authority;

     (b)  one individual appointed by the Insurance Bureau of Canada who
is resident in Alberta, is engaged in the general insurance business and is
employed by a licensed insurer that does not restrict its agents from
acting as general insurance agents for other insurers;

     (c)  3 individuals elected in accordance with this Regulation who
are resident in Alberta, are not employed by an insurer, are engaged in the
general insurance business, are not restricted by contract or otherwise
from acting as insurance agents for more than one insurer and

               (i)  hold insurance agents' certificates of authority to
act as general insurance agents, and

               (ii) have held the insurance agents' certificates of
authority or been designated in the certificates or designated under the
Act for the 5 years before the election;

     (d)  2 individuals appointed by the Insurance Bureau of Canada who
are resident in Alberta, engaged in the general insurance business and
employed by a licensed insurer that restricts its insurance agents from
acting as general insurance agents for any other insurer for the same class
of insurance.


Composition of Insurance Adjusters' Council
5   The Insurance Adjusters' Council consists of the following 4 members:

     (a)  one individual appointed by the Lieutenant Governor in Council
who is resident in Alberta, does not hold a certificate of authority and is
not employed by an insurer or by a person who holds a certificate of
authority;

     (b)  2 individuals elected in accordance with this Regulation who
are resident in Alberta, are engaged in the insurance business, hold
adjusters' certificates of authority and have held the certificates for the
5 years before the election and are not employed by an insurer;

     (c)  one individual appointed by the Insurance Bureau of Canada who
is resident in Alberta, is engaged in the general insurance business and is
employed by a licensed insurer to undertake general insurance.


Chair of councils
6(1)  The members of the Alberta Insurance Council must appoint one of the
members referred to in section 2(b), (c) or (d) as chair.

(2)  The members of the Life Insurance Council must appoint one of the
members referred to in section 3(b) or (c) as chair.

(3)  The members of the General Insurance Council must appoint one of the
members referred to in section 4(b), (c) or (d) as chair.

(4)  The members of the Insurance Adjusters' Council must appoint one of
the members referred to in section 5(b) or (c) as chair.


Becoming ineligible
7   If an individual who is a member of a council no longer meets the
conditions or eligibility requirements for that individual to be a member,
the individual is no longer a member of the council.


Term
8(1)  The term of office of an appointed member of a council is not to
exceed 3 years.

(2)  The term of office of an elected member of a council is 3 years.

(3)  An individual may not serve more than 2 consecutive terms as a member
of a council.

(4)  An individual who serves 2 consecutive terms must wait 3 years before
the individual is eligible to be a member of a council.


Delegation
9   The Minister may under section 791(1) of the Act in writing delegate to
a council, on any terms and conditions that the Minister considers
appropriate, any of the Minister's powers, duties and functions

     (a)  to approve and refuse applications for certificates of
authority,

     (b)  to approve the reinstatement of certificates of authority under
the Act,

     (c)  to impose terms and conditions on certificates of authority,

     (d)  to suspend or revoke certificates of authority and to make
investigations for the purposes of the Act,

     (e)  to levy penalties, and to collect penalties levied, under the
Act, and to remit the money collected to the Provincial Treasurer, and

     (f)  to hold hearings to determine the eligibility of applicants for
certificates of authority and to hold hearings on any of the matters
referred to in clauses (a) to (e).


Delegation to Alberta Insurance Council
10(1)  The Minister may in writing delegate to the Alberta Insurance
Council, on any terms and conditions that the Minister considers
appropriate, any of the Minister's powers, duties and functions 

     (a)  under section 33 of the Insurance Agents and Adjusters
Regulation,

     (b)  under section 481 of the Act,

     (c)  respecting any administrative arrangements or details necessary
or expedient for enabling councils to perform powers, duties or functions
delegated to them under section 9,

     (d)  to receive applications for certificates of authority,

     (e)  to conduct, administer and grade examinations written by
applicants for certificates of authority,

     (f)  to issue certificates of authority,

     (g)  to maintain records under section 794(5) of the Act and the
powers, duties and functions under section 795 of the Act when exercised or
carried out in relation to section 794(5),

     (h)  to collect fees and levies that are payable to the councils by
applicants for certificates of authority and holders of certificates of
authority, 

     (i)  to investigate complaints from persons with respect to
insurance companies and to come to a resolution or disposition of those
complaints, and

     (j)  to investigate complaints on behalf of councils from any
persons regarding alleged contraventions of the Act or the regulations by
holders of certificates of authority and to come to a resolution or
disposition of those complaints.

(2)  The Alberta Insurance Council must prepare and submit to the Minister,
on or before April 30 of each year, an annual report on the operation and
affairs of that council for the year ending on the preceding December 31,
and the report must contain

     (a)  a financial statement summarizing the income and expenditures
of the council,

     (b)  the number of persons registered in each certificate of
authority category,

     (c)  the number of persons in each certificate of authority category

               (i)  who were refused registration, and

               (ii) whose certificates of authority were suspended or
cancelled,

     (d)  the reasons for refusals, suspensions and cancellations,

     (e)  a summary

               (i)  of the complaints received in respect of insurance
companies and the investigations undertaken in respect of those complaints,
and

               (ii) of the resolution or disposition of those
complaints,

     (f)  a summary

               (i)  of the complaints received against holders of
certificates of authority, and

               (ii) of the resolution or disposition of those
complaints,

     (g)  a summary

               (i)  of investigations undertaken against holders of
certificates of authority under the Act, and

               (ii) of the resolution or disposition of the matters
investigated,

     (h)  a list of current members of the councils, and

     (i)  any other information that the Minister has requested.

(3)  The Alberta Insurance Council must provide such administrative
services as may be required to the other councils.


Life, General and Adjusters' Councils
11   The Minister may in writing delegate to the Life Insurance Council,
the General Insurance Council or the Insurance Adjusters' Council, on any
terms and conditions that he considers appropriate, any of his powers,
duties and functions 

     (a)  to approve the respective texts and study materials provided
for the examinations to be written by applicants for certificates of
authority,

     (b)  to approve initial and other examinations to be written by
applicants for certificates of authority, and

     (c)  to approve educational training programs to be undertaken by
applicants for, or holders of, certificates of authority.


Inspection of records, etc.
12   A council must at all reasonable times allow the Superintendent or any
person authorized by the Minister free and full access to the records,
documents, books, papers, correspondence and any other information held by
the council that relate to the exercise of powers, functions and
responsibilities delegated to the council or prescribed by this Regulation,
and must permit the Superintendent or the authorized person to take
possession of any such materials and to retain them for any period that the
Minister considers necessary with due regard to the functions of the
council.


     Appeals

Appeal Board
13(1)  The Insurance Councils Appeal Board is established.

(2)  The Appeal Board consists of the following 15 members:

     (a)  3 individuals appointed by the Minister who are resident in
Alberta and who do not hold a certificate of authority nor are employed by
an insurer or by a person who holds a certificate of authority;

     (b)  3 individuals elected in accordance with this Regulation who
are resident in Alberta, are engaged in the general insurance business,
hold insurance agents' certificates of authority to act as general
insurance agents and are employed by a licensed insurer that restricts its
agents from acting as insurance agents for other insurers;

     (c)  3 individuals elected in accordance with this Regulation who
are resident in Alberta, are not employed by an insurer, are engaged in the
general insurance business, hold insurance agents' certificates of
authority to act as general insurance agents and are not restricted by
contract or otherwise from acting as insurance agents for more than one
insurer;

     (d)  3 individuals elected in accordance with this Regulation who
are resident in Alberta, are not employed by an insurer, are engaged in the
life insurance business and hold insurance agents' certificates of
authority to act as life insurance agents;

     (e)  3 individuals elected in accordance with this Regulation who
are resident in Alberta, are engaged in the insurance business and hold
adjusters' certificates of authority.

(3)  The Minister must maintain a list of members of the Appeal Board.


Becoming ineligible
14   If an individual who is a member of the Appeal Board no longer meets
the conditions or eligibility requirements for that individual to be a
member, the individual is no longer a member of the Appeal Board.


Term
15(1)  The term of office of an appointed member of the Appeal Board is not
to exceed 3 years.

(2)  The term of office of an elected member of the Appeal Board is 3
years.

(3)  An individual may not serve more than 2 consecutive terms in office as
a member of the Appeal Board.

(4)  An individual who serves 2 consecutive terms must wait 3 years before
the individual is eligible to be a member of the Appeal Board.


Notice of appeal
16(1)  A person who is adversely affected by a decision of a council may
appeal the decision by submitting a notice of appeal to the Superintendent
within 30 days after the council has mailed the written notice of the
decision to the person.

(2)  The notice of appeal must contain the following:

     (a)  a copy of the written notice of the decision being appealed;

     (b)  a description of the relief requested by the appellant;

     (c)  the signature of the appellant or the appellant's lawyer;

     (d)  an address for service in Alberta for the appellant;

     (e)  an appeal fee of $100 payable to the Provincial Treasurer.

(3)  The Superintendent must notify the Minister and provide a copy of the
notice of appeal to the council whose decision is being appealed when a
notice of appeal has been submitted.

(4)  If the appeal involves a suspension or revocation of a certificate of
authority or a levy of a penalty, the council's decision is suspended until
after the disposition of the appeal by a panel of the Appeal Board.


Panels

17(1)  The Minister must, within 30 days of the Superintendent's receiving
a notice of appeal, select members of the Appeal Board to form a panel that
will decide the appeal.

(2)  A panel consists of one individual selected from the appointed members
of the Appeal Board and 2 individuals selected from the elected members of
the Appeal Board.

(3)  The individual selected from the appointed members is the chair of the
panel.

(4)  No member of the Appeal Board who has an interest in the
subject-matter raised in a notice of appeal, whether directly or because of
the member's position, affiliation or involvement in or with an
organization, firm or business, may participate in the panel that will
decide the appeal.


Remuneration, fees and expenses
18(1)  The remuneration, fees and expenses payable to panel members are in
accordance with Schedule 1, Part A of the Committee Remuneration Order
being Order in Council numbered O.C. 108/2000.

(2)  The Alberta Insurance Council must pay to panel members the
remuneration, fees and expenses referred to in subsection (1).


Hearing and notice of hearing
19(1)  The panel must fix a date for a hearing of the appeal, which date
must be not more than 30 days after the last member of the panel is
selected. 

(2)  The time period for the date of the hearing may be extended

     (a)  by the Minister on the request of the panel, or

     (b)  by the panel on the request of the appellant or the council
whose decision is being appealed.

(3)  The panel must give written notice of the date of the hearing to the
appellant and to the council whose decision is being appealed.

(4)  The written notice must contain 

     (a)  the date, time and place of the hearing, and

     (b)  the mailing address of the panel.


Evidence - council's decision
20   The council whose decision is being appealed must file with the panel
and serve on the appellant

     (a)  the evidence submitted to the council or that the council
obtained for the purposes of making its decision,

     (b)  all other papers and documents in the possession of the council
relating to the decision, and

     (c)  a document from the council certifying that all the material
referred to in clauses (a) and (b) is being filed.


Written submissions
21(1)  If a written submission is made to the panel by the appellant or the
council whose decision is being appealed, the submission must be filed with
the panel and served on the other party at least 7 days before the date of
the hearing.

(2)  A written submission must contain the following:

     (a)  a summary of the facts and evidence to be relied on by the
party;

     (b)  a list of any witnesses to be called by the party;

     (c)  the name, address and telephone number of any lawyer acting on
behalf of the party.

(3)  The written submission must be signed by the party or the lawyer of
the party.

(4)  A panel may allow a party to introduce evidence or call witnesses at a
hearing even though the party did not comply with this section and, if the
panel allows the introduction of evidence or the calling of witnesses, the
panel must provide the other party with an opportunity to review and to
respond to the evidence, including the evidence of the witnesses.


Procedural fairness
22(1)  Every panel is subject to the principles of procedural fairness.

(2)  A panel is not bound by the rules of evidence applicable to courts of
civil or criminal jurisdiction.

(3)  A panel is confined in making its decision to the submissions and
evidence submitted to it. 


Panel orders
23   A panel may by order 

     (a)  confirm the refusal to issue a certificate of authority,
confirm the suspension or cancellation of a certificate of authority or
confirm the levy of a penalty,

     (b)  direct that a certificate of authority be issued,

     (c)  cancel the revocation of a certificate of authority or
substitute a period of suspension,

     (d)  cancel or vary the suspension of a certificate of authority, or

     (e)  cancel the levy of a penalty or vary the time for its payment.


Disposition of appeal fee
24(1)  If the panel makes an order under section 23(a), the amount of the
appeal fee must be paid to the Alberta Insurance Council.

(2)  If the panel makes an order under section 23(b) or (c) or cancels the
suspension of a certificate of authority under section 23(d), the amount of
the appeal fee must be refunded to the appellant.

(3)  If the panel varies the suspension of a certificate of authority under
section 23(d) or makes an order under section 23(e), the panel must
determine whether the amount of the appeal fee is to be paid to the Alberta
Insurance Council or refunded to the appellant.


Requirements for order
25(1)  The order of the panel must be in writing, be signed by the chair
and contain the following:

     (a)  a summary of the evidence;

     (b)  a statement of the issues to be decided;

     (c)  the reasons for the decision, including any dissent.

(2)  The panel must mail copies of its order to the appellant, to the
council whose decision was appealed and to the Superintendent.


Appeal to Court
26(1)  The person whose appeal was heard by the panel or the council whose
decision was appealed to the panel may appeal the order of the panel to the
Court of Queen's Bench by filing in that Court an originating notice within
30 days after the panel has mailed the order to the person and the council.

(2)  The appeal may only be based on a question of law or jurisdiction.

(3)  The originating notice must be served on the other party to the
appeal, the panel and the Superintendent.

(4)  The panel's order remains in effect during an appeal to the Court of
Queen's Bench, unless that Court orders otherwise.

(5)  Except for an appeal under this section, no order of a panel may be
questioned, reviewed, restrained or removed by prohibition, injunction,
certiorari or any other process or proceeding in a court.


Evidence
27(1)  The panel whose order is being appealed must file with the Court of
Queen's Bench

     (a)  the evidence submitted to the panel for the purposes of making
its order,

     (b)  all other papers and documents in the possession of the panel
relating to the order, and

     (c)  a document from the panel certifying that all the material
referred to in clauses (a) and (b) is being filed.

(2)  The panel must serve the document referred to in subsection (1)(c) on
the parties to the appeal, but the panel is not required to serve the
material referred to in subsection (1)(a) and (b) on the parties.

(3)  The Court of Queen's Bench is confined in making its order to the
evidence submitted to the panel, unless the Court allows new evidence to be
admitted.


Court orders
28   The Court of Queen's Bench may

     (a)  make any order that the panel may make or refer the matter back
to the panel, and

     (b)  make any order that it considers appropriate respecting the
appeal fee referred to in section 24.


     General Provisions and Elections

Eligibility for candidates
29   An individual is not eligible to be a member of a council or the
Appeal Board if

     (a)  the individual has ever been convicted of an offence under the
Insurance Act, 

     (b)  the individual's certificate of authority has ever been
suspended or revoked,

     (c)  a penalty under section 480 of the Act has ever been levied
against the individual,

     (d)  the individual is a dependent adult as defined in the Dependent
Adults Act or is the subject of a compulsory care order or a certificate of
incapacity under that Act,

     (e)  the individual is a formal patient as defined in the Mental
Health Act,

     (f)  the individual has been found to be a person of unsound mind by
a court elsewhere than in Alberta, or

     (g)  the individual does not meet an eligibility criterion that has
been established by the Alberta Insurance Council and approved by the
Minister.


Nominations
30(1)  An individual is nominated as a candidate in an election if the
individual is nominated by at least 5 people who are eligible to vote in
the election of the candidate.

(2)  No individual may be nominated to be a candidate for membership on
more than one council at the same time or to be a candidate for membership
on a council and the Appeal Board at the same time.

(3)  No individual may be nominated to be a candidate for membership on a
council if the individual is a member of another council or the Appeal
Board.

(4)  No individual may be nominated to be a candidate for membership on the
Appeal Board if the individual is a member of a council.


Voter eligibility - council elections
31(1)  An individual is eligible to vote in an election for members to the
Life Insurance Council if the individual, when the ballot is mailed to the
individual,

     (a)  is engaged in the life insurance business, and 

     (b)  holds a certificate of authority to act as a life insurance
agent.

(2)  An individual is eligible to vote in an election for members to the
General Insurance Council if the individual, when the ballot is mailed to
the individual,

     (a)  is not employed by an insurer, 

     (b)  is engaged in the general insurance business, 

     (c)  is not restricted by contract or otherwise from acting as agent
for more than one insurer, and

     (d)  holds a certificate of authority to act as a general insurance
agent.

(3)  An individual is eligible to vote in an election for members to the
Insurance Adjusters' Council if the individual, when the ballot is mailed
to the individual,

     (a)  is engaged in the general insurance business, and

     (b)  holds an adjuster's certificate of authority.


Voter eligibility - Appeal Board elections
32(1)  An individual is eligible to vote in an election for a member of the
Appeal Board if the individual meets the requirements under section 13(2)
to be a candidate for that election when the ballot is mailed to the
individual.

(2)  Despite subsection (1), an individual who is not a resident of Alberta
is eligible if the individual meets all of the other requirements under
section 13(2).


Election process
33(1)  The Alberta Insurance Council is responsible for conducting an
election under this Regulation.

(2)  An election and request for nominations must be advertised.

(3)  Nominations must be received by the Council by a date specified by the
Council and that date must be at least 30 days after the advertisement is
published.

(4)  Elections are to be by a mail vote and ballots must be returned by
voters by a date that the Council specifies.

(5)  The Council must

     (a)  declare the winners of the election within 5 days, excluding
Saturdays and holidays, after the date that all ballots are to be returned
by voters, and

     (b)  notify the Minister of each declaration.

(6)  An elected member's term commences when the Council declares the
member to be elected.

(7)  The Council may make rules respecting elections under this Regulation.

(8)  The rules and any amendments to them do not come into force unless
they have been approved by the Minister.


Alternate elected members
34(1)  In this section,

     (a)  "former member" means an elected member of a council or the
Appeal Board who ceases to be a member for a reason other than the
expiration of the member's term;

     (b)  "runner up" means a candidate in an election who did not
receive enough votes to be declared elected;

     (c)  "vacancy" means a vacancy in a council or the Appeal Board
created by a former member.

(2)  When a vacancy occurs in a council or the Appeal Board, the Alberta
Insurance Council must declare elected  the runner up having the highest
number of votes in the most recent election held for the category of the
former member who created the vacancy if the runner up

     (a)  wishes to fill the vacancy, and 

     (b)  still meets the eligibility requirements to be a candidate.

(3)  When a vacancy occurs in a council or the Appeal Board and the runner
up referred to in subsection (2)  does not wish to fill the vacancy or no
longer meets the eligibility requirements to be a candidate or when a
vacancy occurs and there are no runners up in the most recent election held
for the category of the former member who created the vacancy, the Alberta
Insurance Council may

     (a)  conduct an election to fill the vacancy,

     (b)  declare, from any remaining runners up in the most recent
election held for the category of the former member, the runner up with the
highest number of votes who wishes to fill the vacancy and still meets the
eligibility requirements to be a candidate to be elected, or

     (c)  if there is still a quorum in the council or Appeal Board,
choose not to fill the vacancy.

(4)  If the Alberta Insurance Council declares a runner up to be elected
under this section to fill a vacancy, the term of the runner up is the
remainder of the former member's term.

(5)  If, as a result of conducting an election under this section to fill a
vacancy, the Alberta Insurance Council declares an individual to be elected
and the declaration occurs with more than 187 days remaining in the term of
the former member, the term of the individual is the remainder of the
former member's term.

(6)  If, as a result of conducting an election under this section to fill a
vacancy, the Alberta Insurance Council declares an individual to be elected
and the declaration occurs with 187 days or fewer remaining in the term of
the former member, the term of the individual is the remainder of the
former member's term plus 3 years.

(7)  The term of the runner up or individual referred to in subsection (4),
(5) or (6) is deemed to be one full term for the purposes of sections 8 and
15.

(8)  Despite anything in this section, the Alberta Insurance Council is not
required to fill a vacancy in a council or the Appeal Board if there are 60
days or fewer remaining in the term of the former member when the vacancy
occurs.


     Transitional Provisions, Repeals,
     Expiry and Coming into Force

Appeals continued
35   An appeal commenced but not withdrawn or completed under the Insurance
Councils Regulation (AR 323/88) continues under this Regulation.


Repeal
36   The Insurance Councils Regulation (AR 323/88) is repealed.


Expiry
37   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
38   This Regulation comes into force on the coming into force of any
section of the Insurance Act (SA 1999 cI-5.1).


     ------------------------------

     Alberta Regulation 127/2001

     Insurance Act

     REPLACEMENT OF LIFE INSURANCE CONTRACTS REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 274/2001) on July 11, 2001
pursuant to section 498 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Definitions    1
Inducement to replace contract     2
Agent's duty where replacement could be detrimental    3
Agent's duty where contract should be changed     4
Disclosure statement on replacement     5
Agent's duty on new contract application     6
Delivery of contract and statements     7
No insurance agent  8
Right to withdraw application 9
Refund on withdrawal     10
Transitional   11
Repeal    12
Expiry    13
Coming into force   14


Definitions
1   In this Regulation,

     (a)  "contract" means a contract of insurance relating to life
insurance;

     (b)  "replacement of a contract" or "replacement" means any
transaction whereby life insurance is purchased in a single contract or in
2 or more related contracts by a person from an insurer and, as a
consequence of the transaction, one or more existing contracts are

               (i)  rescinded, lapsed or surrendered, 

               (ii) changed to paid-up insurance or continued as
extended term insurance or under automatic premium loans,

               (iii)     changed in any other manner to effect a reduction
of  benefits,

               (iv) changed so that cash values in excess of 50% of the
tabular cash value are released, or

               (v)  subjected to the borrowing of any policy loan
value, whether in a single loan or under a schedule of borrowing over a
period of time, whereby an amount in excess of 50% of the tabular cash
value is borrowed,

          but does not include a transaction whereby a new purchase is
made pursuant to a contractual privilege being exercised by the
policyholder under an existing contract or an existing contract is replaced
by an annuity.


Inducement to replace contract
2   An insurer or insurance agent must not, where it would be detrimental
to the interests of the policyholder, directly or indirectly induce or
attempt to induce a policyholder to effect a replacement of a contract.


Agent's duty where replacement could be detrimental
3(1)  Where, in the opinion of an insurance agent who is recommending the
replacement of a contract, the replacement would be detrimental to the
interests of a policyholder, the insurance agent must make every reasonable
effort to ensure that the existing contract is maintained in force.

(2)  Notwithstanding subsection (1), where a policyholder initiates a
replacement that, in the opinion of an insurance agent, would be
detrimental to the policyholder's interests, the insurance agent must
advise the policyholder of the advantages and disadvantages to the
policyholder that would result from the replacement.


Agent's duty where contract should be changed
4   Where it comes to the knowledge of an insurance agent that, due to a
change in circumstances, an existing contract should be amended or
replaced, the insurance agent must endeavour to have the existing contract
amended or replaced by the insurer that issued it, in a manner that is
consistent with the policyholder's best interests and in such a manner that
any values, credits or privileges in the existing contract are transferred
to the amended or replacing contract.


Disclosure statement on replacement
5(1)  Where replacement of a contract is recommended by an insurance agent
or instructed by a policyholder, the insurance agent must, prior to taking
a new application,

     (a)  complete and present to and review with the applicant a
disclosure statement in a form approved by the Minister, and

     (b)  obtain on the disclosure statement the signature of the
applicant or other person whose life will be insured under the replacement
contract, to indicate receipt of the disclosure statement by the applicant
or other person.

(2)  The holder of a Level 1 life insurance certificate must have the
disclosure statement countersigned by the holder of a Level 2 life
insurance certificate who, by countersigning it, accepts responsibility for
the completion of the disclosure statement as if  the holder of the Level 2
life insurance certificate had completed the disclosure statement as the
insurance agent.

(3)  References in subsection (2) to a level of life insurance certificate
are references to the level of a certificate of authority to act as a life
insurance agent specified in the Insurance Agents and Adjusters Regulation.


Agent's duty on new contract application
6   An insurance agent for an insurer

     (a)  must obtain as part of an application for a contract a
statement signed by the applicant stating whether replacement of a contract
is intended, and

     (b)  must prepare and forward to the insurer with the application a
statement signed by the agent stating whether replacement is intended.


Delivery of contract and statements
7   On taking an application where replacement of a contract is intended,
an insurance agent

     (a)  must forward to the insurer whose existing contract is intended
to be replaced a copy of the disclosure statement, completed in accordance
with section 5, within 3 working days of the date of application,

     (b)  must forward to the insurer that has been requested to issue a
new contract a copy of the disclosure statement, completed in accordance
with section 5, a copy of all written proposals presented to the applicant
by the insurance agent and all written directions received by the insurance
agent from the applicant, and

     (c)  must deliver the new contract as soon as is practicable unless
contrary written instructions are received from the applicant.


No insurance agent
8   Where there is no insurance agent, the insurer that is replacing an
insurance policy must comply with sections 3 to 7 as if that insurer were
an insurance agent.


Right to withdraw application
9   An applicant for the replacement of a contract may in writing withdraw
the application within 20 days of the date on which the applicant signed
the completed disclosure statement.


Refund on withdrawal
10   Where the applicant withdraws an application under section 9, the
insurer must refund any premium, deposit or other payment made by the
applicant in respect of the proposed replacement, and if the application is
for a single premium life insurance policy or a policy whose value depends
on a stated rate of interest or a stated group of assets, the refund must
be adjusted to reflect the change in the capital value of the contract.


Transitional
11   Any disclosure statement approved by the Minister under the
Replacement of Life Insurance Contracts Regulation (AR 63/90) is continued
as if it were approved by the Minister under this Regulation.


Repeal
12   The Replacement of Life Insurance Contracts Regulation (AR 63/90) is
repealed.


Expiry
13   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
14   This Regulation comes into force on the coming into force of any
section of the Insurance Act (SA 1999 cI-5.1).


     Alberta Regulation 128/2001

     Insurance Act

     MARKET CONDUCT REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 275/2001) on July 11, 2001
pursuant to section 511 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Definition     1
Claims disclosure   2
Disclosure of insured's right to choose service provider    3
Prohibited tied selling practices  4
Right to rescind contract of insurance  5
Expiry    6
Coming into force   7


Definition
1   In this Regulation, "Act" means the Insurance Act (SA 1999 cI-5.1).


Claims disclosure
2   Where there is a claim against the insured under a contract of
automobile insurance and in the insurer's opinion the insured is liable,
the insurer who settles the claim must

     (a)  notify the insured of the insured's liability within 30 days of
forming the opinion that the insured is liable, and

     (b)  on the request of the insured, disclose to the insured

               (i)  the dollar amount of any claim paid to a third
party, 

               (ii) the date of the settlement, 

               (iii)     the name of the third party, and

               (iv) the nature or purpose of the settlement.


Disclosure of insured's right to choose service provider
3   Where an insurer, insurance agent or adjuster is notified by an insured
of a loss respecting damage to property and the insurer, insurance agent or
adjuster recommends a particular service provider to the insured, the
insurer, insurance agent or adjuster must advise the insured in writing
that the insured may have the repairs estimated and completed by a service
provider of the insured's choice, except where the insurer exercises its
right to undertake the repairs.


Prohibited tied selling practices
4   For the purpose of section 509(1)(b) of the Act, the following tied
selling practices are prohibited:

     (a)  where an insurer or insurance agent other than the holder of a
restricted certificate is asked to sell insurance to a person, informing
the person that the person must purchase another product or service,
including an insurance policy, from the insurer or insurance agent, as the
case may be, before the insurance requested will be undertaken;

     (b)  where an insurer is asked to make a loan to a person, informing
the person that the person must purchase a product or service, including an
insurance policy, from the insurer before the loan will be made.


Right to rescind contract of insurance
5(1)  A person who buys a contract of life insurance underwritten by an
insurer may rescind the contract within 10 days after receiving the
insurance policy or within any longer period specified in the contract.

(2)  Subsection (1) does not apply to a segregated fund or an annuity
offered by the insurer.

(3)  A person who rescinds a contract under subsection (1) is entitled to
receive from the insurer a refund of the whole premium that has been paid.


Expiry
6   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
7   This Regulation comes into force on the coming into force of any
section of the Act.


     ------------------------------

     Alberta Regulation 129/2001

     Insurance Act

     ENFORCEMENT AND ADMINISTRATION REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 276/2001) on July 11, 2001
pursuant to sections 790 and 818 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

     Administrative Penalties

Prescribed provisions    1
Notice of administrative penalty   2
Amount of penalty   3
Interest  4

     Compensation Associations

Designation of compensation association 5, 6

     Repeals, Expiry and Coming into Force

Repeal    7
Expiry    8
Coming into force   9

Schedule


     Administrative Penalties

Prescribed provisions
1(1)  Subject to subsection (2) the Minister may give a notice of
administrative penalty under section 789 of the Act in respect of

     (a)  a provision of the Act if the Act makes the contravention of
that provision an offence, or

     (b)  any of the provisions of the regulations that are listed in the
Schedule to this Regulation.

(2)  The Minister shall not give a notice of administrative penalty to a
holder or former holder of a certificate of authority in respect of any act
or omission if the Minister also has a remedy against the holder or former
holder under section 480 of this Act in respect of that act or omission.


Notice of administrative penalty
2   A notice of administrative penalty must contain the following
information:

     (a)  the name of the person required to pay the administrative
penalty;

     (b)  particulars of the contravention;

     (c)  the amount of the administrative penalty and the time by which
it must be paid.


Amount of penalty
3   The amount of an administrative penalty shall be determined by the
Minister, who shall take into account the following factors:

     (a)  the seriousness of the contravention;

     (b)  the importance of the regulatory scheme of compliance with the
provision;

     (c)  the degree of wilfulness or negligence in the contravention;

     (d)  whether or not there was any mitigation relating to the
contravention;

     (e)  whether or not steps have been taken to prevent reoccurrence of
the contravention;

     (f)  whether or not the person who receives the notice of
administrative penalty has a history of non-compliance;

     (g)  whether or not the person who receives the notice of
administrative penalty has derived any economic benefit from the
contravention;

     (h)  any other factors that, in the opinion of the Minister, are
relevant.


Interest
4(1)  If an administrative penalty is not paid by the date specified in the
notice, the person to whom the notice was given is liable for the payment
of interest on the unpaid amount at the rate of 12% per year, running from
the due date until the administrative penalty is fully paid.

(2)  An unpaid administrative penalty together with unpaid interest
constitutes a debt owing to the Crown and may be recovered in an action in
debt.


     Compensation Associations

Designation of compensation association
5(1)  The Property and Casualty Insurance Compensation Corporation is
designated as a compensation association for the following classes of
insurance:

     (a)  automobile insurance;

     (b)  boiler and machinery insurance;

     (c)  fire insurance;

     (d)  inland transportation insurance;

     (e)  livestock insurance;

     (f)  public liability insurance;

     (g)  plate glass insurance;

     (h)  property damage insurance;

     (i)  sprinkler leakage insurance;

     (j)  theft insurance;

     (k)  weather insurance;

     (l)  legal expense insurance;

     (m)  loss of employment insurance in respect of policies issued by a
property and casualty company;

     (n)  accident and sickness insurance in respect of policies issued
by a property and casualty company that is also licensed to offer other
classes of insurance;

but those classes do not include crop insurance, directors' and officers'
insurance or errors and omissions insurance.

(2)  In subsection (1),

     (a)  "crop insurance" means insurance against the loss of, or damage
to, crops in the field caused by drought, flood, hail, wind, frost,
lightning, excessive rain, snow, hurricane, tornado, wildlife, fire, insect
infestation, plant disease or other peril;

     (b)  "directors' and officers' insurance" means an undertaking by an
insurer

               (i)  to indemnify the directors and officers of a
corporation in respect of losses resulting from any claim against them for
a negligent or wrongful act, or

               (ii) to indemnify a corporation for losses for which the
corporation is required or permitted by law to indemnify its directors and
officers in respect of claims against them, for negligent or wrongful acts;

     (c)  "errors and omissions insurance" means an undertaking by an
insurer to pay on behalf of an insured amounts that the insured is legally
obligated to pay as damages because of an act, error or omission of the
insured or of any other person for whose acts, errors or omissions the
insured is legally responsible, arising out of the performance or intended
performance of professional services for others or a failure to perform
professional services that ought to have been performed in the insured's
professional capacity, other than medical services for another person.


Designation of compensation association
6   The Canadian Life and Health Insurance Compensation Corporation is
designated as a compensation association for the following classes of
insurance:

     (a)  life insurance in respect of policies of that class issued by a
life company other than a mutual benefit society or a fraternal society;

     (b)  accident and sickness insurance in respect of policies issued
by a life company or by a property and casualty insurer licensed to offer
accident and sickness insurance only;

     (c)  loss of employment insurance in respect of policies issued by a
life company.


     Repeals, Expiry and Coming into Force

Repeal
7   The Compensation Associations and Classes of Insurance Regulation (AR
282/88) is repealed.


Expiry
8   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
9   This Regulation comes into force on the coming into force of any
section of the Insurance Act (SA 1999 cI-5.1).


     SCHEDULE

     REGULATORY PROVISIONS IN RESPECT OF WHICH
     AN ADMINISTRATIVE PENALTY IS PAYABLE

1   Provincial Companies Regulation

     - sections 2, 3, 4, 5, 6, 7(1) and 14(2) and (3).


2   Replacement of Life Insurance Contracts Regulation

     - sections 2, 8 and 10.


3   Insurance Agents and Adjusters Regulation

     - sections 15(3), 18(2) and 28.


4   Market Conduct Regulation

     - sections 2, 3 and 5(3).


     ------------------------------

     Alberta Regulation 130/2001

     Insurance Act

     TRANSITIONAL INSURANCE REGULATION

     Filed:  July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 277/2001) on July 11, 2001
pursuant to section 849 of the Insurance Act, SA 1999 cI-5.1.


     Table of Contents

Definitions    1
Interpretation 2
Transitional provisions  3
Expiry    4
Coming into force   5


Definitions
1   In this Regulation,

     (a)  "former Insurance Act" means the Insurance Act (RSA 1980 cI-5);

     (b)  "new Act" means the Insurance Act (SA 1999 cI-5.1).


Interpretation
2   This Regulation is made for greater clarity and shall not be
interpreted so as to limit or exclude the application of the Interpretation
Act in respect of the transition of matters under the former Insurance Act
to the new Act.


Transitional provisions
3(1)  Forms that were approved under section 295 of the former Insurance
Act and are in effect on the coming into force of this Regulation continue
as approved forms for the purposes of section 610 of the new Act.

(2)  A financial responsibility card that was approved under section 68(6)
of the Motor Vehicle Administration Act and is in effect on the coming into
force of this Regulation continues as an approved financial responsibility
card for the purposes of section 822 of the new Act.

(3)  Rates, classifications of vehicles and rates attaching to classes of
vehicles that are, on the coming into force of this Regulation, the subject
of a subsisting approval, deemed approval or order under section 341 of the
former Insurance Act continue as the rates, classifications of automobiles
and rates attaching to classes of automobiles for the purposes of section
656 of the new Act.

(4)  A plan that has been approved by the Superintendent under section 347
of the former Insurance Act and is in effect on the coming into force of
this Regulation continues as a plan for the purposes of section 661 of the
new Act.

(5)  An agreement that was entered into under section 21.1 of the former
Insurance Act and is in effect on the coming into force of this Regulation
continues as an agreement for the purposes of section 817 of the new Act.


Expiry
4   For the purpose of ensuring that this Regulation is reviewed for
ongoing relevancy and necessity, with the option that it may be repassed in
its present or an amended form following a review, this Regulation expires
on May 1, 2006.


Coming into force
5   This Regulation comes into force on the coming into force of any
provision of the Insurance Act (SA 1999 cI-5.1).