The Lieutenant Governor in Council makes the Agriculture Financial Services Amendment Regulation set out in the attached Appendix.
Agriculture Financial Services Act
AGRICULTURE FINANCIAL SERVICES AMENDMENT REGULATION
1 The Agriculture Financial Services Regulation (AR 99/2002) is amended by this Regulation.
2 Section 9.2 is amended by striking out “$10 000 000” and substituting “$25 000 000”.
3 The following is added after section 9.2:
Limits for the purpose of s29(1) of the Act
9.3 The maximum amount for the purposes of section 29(1)(a), (b) and (c) of the Act is $5 000 000.
4 The heading immediately before section 23 is struck out and the following is substituted:
5 Section 23(b) is repealed.
6 Section 38(2) to (7) are repealed and the following is substituted:
(2) Adjustments to coverage may be made for each crop in each crop year based on an insured’s historical performance as determined by the Corporation in accordance with the contract of insurance.
7 Section 45(1) is amended by adding the following after clause (c):
8 The following is added after section 46.3:
Livestock Price Insurance
46.4 In this Part,
(a) “insurable livestock” means beef cattle;
(b) “insurable period” means the length of time the insured elects for livestock insurance coverage;
(c) “insured livestock” means insurable livestock
(i) that the insured has elected for coverage, and
(ii) that the Corporation accepts for insurance;
(d) “insured value” means the value per unit of livestock elected by the insured for coverage under the policy of insurance;
(e) “livestock price insurance” means insurance offered by the Corporation for the purpose of covering livestock for price variations;
(f) “schedule of rates” means the schedule of coverages and premiums established by the Corporation.
Application of Part
46.41(1) Subject to this Part, the form and content of the application forms for insurance and of the contracts of insurance may be prescribed by the Corporation.
(2) Where a contract of insurance prescribes a time within which or before which something is to be done, the Board may by resolution extend the time.
(3) The provisions of any contract of insurance are incorporated by reference and apply as if they form part of this Part.
Application for insurance
46.42(1) An application for livestock insurance must be received by the Corporation before the period for which the insurance is to apply.
(2) The form of the application for insurance must contain sufficient information to allow the Corporation to determine if the applicant is eligible for insurance and that the applicant has or will have insurable livestock.
(3) The application for insurance may require the applicant to provide the following information:
(a) the name, address and social insurance number of the applicant;
(b) if the applicant is a company, the social insurance number of each shareholder holding 10% or more of the voting shares and the company’s identification number used for income tax purposes;
(c) the location of land on which insurable livestock is to be fed;
(d) any other records or information the Corporation considers necessary to adequately assess the requirements for insurance.
Eligibility for livestock price insurance
46.5 A person is eligible for livestock price insurance if that person
(a) is the owner of or has majority ownership of insurable livestock, and
(b) operates a farm in Alberta.
46.51 Livestock price insurance may be offered in respect of insurable livestock if that livestock is
(a) fed in Alberta, or
(b) fed outside of Alberta but within a geographical locale, as may be specified by the Corporation from time to time, to which the livestock is relocated for feeding due to emergency or other extenuating circumstances.
Requirements and entitlements
46.52(1) A person insuring livestock must own sufficient units of livestock to match the units of livestock insured.
(2) If a person fails to comply with subsection (1), the Corporation may deny all or part of any liability under the policy of insurance.
(3) If, in the opinion of the Corporation, all or a part of the loss is due to uninsured perils,
(a) the Corporation is not obligated to pay for that portion so lost, and
(b) the insured is not entitled to the return of any money paid as premium or relieved from liability for paying outstanding premiums.
46.6 The Corporation may appoint adjusters as necessary to inspect insured livestock and generally investigate and report on any claims or losses under any contract of insurance.
Contract terms and conditions
46.61(1) The contract of insurance may allow either the Corporation or the insured to cancel the contract for a specified coverage period by giving the other party to the contract written notice of cancellation of coverage not later than a date to be specified by the Corporation in the contract.
(2) A contract of insurance with an insured remains in force during any period in which the insured does not elect coverage, but after 2 consecutive years with no insured coverage periods, the contract of insurance may be cancelled by the Corporation unless the insured requests in writing that it not be cancelled.
(3) A contract of insurance must contain the method of calculating the indemnity payable to an insured on insured livestock.
46.62(1) The coverage levels and the insured values are to be set by the Corporation in the schedule of rates.
(2) The Corporation must provide to an insured or applicant, on request, the coverage level for each insurable period.
Notice of election
46.7 The insured must give the Corporation written notification of the following not later than the date set by the Corporation:
(a) the type of livestock the insured wishes to insure;
(b) the number of units of insurable livestock;
(c) the level of coverage;
(d) the insured period of coverage.
Basic premium rates
46.71 Basic premium rates payable by an insured are those set in the schedule of rates, subject to adjustments made in accordance with section 46.8.
Premium rate calculation
46.8 The basic premiums payable by an insured on all insured livestock must be adjusted by means of a discount or surcharge determined in accordance with a formula established by the Corporation with the consent of the Minister.
Period of coverage
46.81(1) Coverage commences on the date of purchase of the coverage.
(2) Coverage ends on the expiration date of the policy or, if the insured elects to terminate coverage earlier than the expiration date, on the date elected by the insured.
(3) The Corporation may, in its discretion, extend the settlement date beyond the date of expiration of the policy of insurance.
Limitation of offering
46.9 The Corporation may, in its absolute discretion, suspend sales of new policies based on conditions outlined in the contract of insurance, including unstable market conditions, insufficient data and conditions that may place the Corporation at unacceptable risk.
9 Section 47 is amended
(a) by adding the following after clause (a):
(a.1) “bee products” means bee eggs and larvae existing when the loss or damage occurs and bee hives and nesting material in active field service;
(b) by repealing clause (c)(iii) and substituting the following:
(iii) bees and bee products;
(c) by repealing clause (d.1).
10 The following is added after section 77:
78 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 March 31, 2014.
11 This Regulation comes into force on the coming into force of section 6 of the Agriculture Financial Services Amendment Act, 2008.