Regulation (March 01, 2010)

B.C. TAKES ITS OWN APPROACH TO PART XIII CHANGES

British Columbia’s Financial Institutions Commission (FICOM) has made legislative changes in the wake of recent amendments to Part XIII of the Insurance Companies Act, saying it believes the Part XIII amendments place the public at risk.

The B.C. regulator contends the changes made to Part XIII by the Office of the Superintendent of Financial Institutions “could allow foreign insurers to insure risks in this province without that business being regulated in Canada,” FICOM said in a release.

“This province believes that this creates an increased risk to the public of this province and has taken steps to address that risk.”

The legislative changes require foreign insurers who are insuring risks in British Columbia to 1) obtain a business authorization issued by the FICOM, or 2) ensure the placement of their insurance is made through licensed insurance brokers.

A bulletin with a complete list of the changes and their potential effects on insurers can be found at:

http://www.fic.gov.bc.ca/responsibilities/insurance/informationbulletins.htm.