Summary Of B.C.’S New Insurance Act (In Force Since July 1, 2012)

Driven by criticism from the courts, insurers and consumers alike, British Columbia sought to review and enhance the Insurance Act, RSBC 1996, c. 226 (the "Former Act"). This statute was replaced with a completely new and modernized act, the Insurance Act, SBC 2012, c. 37 (the "New Act"), which came into force on July 1, 2012. Although it is not meant to be exhaustive, this bulletin outlines some of the more fundamental changes arising from the New Act.

1. Structural reform

The Former Act contained distinct categories for Life Insurance, Accident and Sickness Insurance, and Fire Insurance alongside broader General Provisions. Under the New Act, the Fire Insurance category has been eliminated, its previous application essentially subsumed within the General Insurance Provisions. Those parts of the New Act which relate to Life Insurance and Accident and Sickness Insurance remain in place.