There have a been a number of recent amendments to the various provincial insurance regulatory regimes, including changes concerning interest rates on instalment payments, operational risk management guidelines, and the Life Insurance Capital Adequacy Test, to name a few. To help you stay on top of what you need to know, set out below is a summary of the most recent amendments, province by province.


  1. Amendments to Regulation 664 of the Insurance Act R.R.O. 1990

The following amendments have been made:

  • Changes to the maximum interest rate chargeable by the insurer for instalment payments.
  • Insurers are now prohibited from taking into consideration a minor accident that occurred on or after June 1st 2016 in deciding whether to issue, renew or terminate any contract of automobile insurance or to provide or continue any coverage, except in certain circumstances, unless the automobile covered was involved in more than one minor accident in the previous three years and the driver was at fault. 


  1. Consultation on the Operational Risk Management Guideline (published by the AMF on May 26th, 2016)

The Operational Risk Management Guideline is intended for insurers of persons (life and health), damage insurers, portfolio management companies controlled by an insurer, financial services cooperatives as well as trust and savings companies, which are governed by the following Acts:

  • An Act respecting insurance, CQLR, c. A-32;
  • An Act respecting financial services cooperatives, CQLR, c. C-67.3;
  • An Act respecting trust companies and savings companies, CQLR, c. S-29.01.

This guideline covers the interpretation, execution and application of the financial institutions’ legal requirement to follow sound and prudent management practices. The consultation will end on July 15th, 2016 and will come into effect on October 1st, 2016.

  1. Intervention Guidelines For Quebec-Chartered P&C Insurers and PACICC Member Companies (published by the AMF on April 21st, 2016)

The intervention guidelines will help stakeholders in understanding the actions and measures that can be implemented, either by the AMF or the Property and Casualty Insurance Compensation Corporation, when a Quebec-chartered P&C insurer and PACICC member company experiences difficulties that may jeopardize its ability to meet its commitments to its policyholders, claimants and other beneficiaries. The guidelines came into effect on April 30, 2016.

British Columbia

  1. Notice of Intent to Adopt Guideline: Life Insurance Capital Adequacy Test (LICAT) (published by FIC on April 4th, 2016)

Section 8.1 of the Capital Requirements Regulation of the Financial Institutions Act of British Columbia states, in part, that the minimum adequate capital base of a life insurance company is determined in accordance with the MCCSR Guideline as established, published, and amended from time to time by OSFI. This section would be amended with a reference to the LICAT.


  1. The New Home Warranty Act S.M. 2013, c. 23

The Act requires that all prescribed homes be covered by a home warranty. Insurers that provide home warranties in Manitoba will have to register. The Act will enter into effect on January 1st, 2017. 

Nova Scotia

  1. Amendment to Automobile Insurance Contract Mandatory Conditions Limitation Period

On April 13th, 2016, the government has changed the regulation to effect a change in the limitation of civil claim caused by an automobile injury from three years to two years making it consistent with the Limitation of Actions Act.