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| B.C. Reg. 84/91 O.C. 373/91 |
Deposited March 22, 1991 |
| This archived regulation consolidation is current to December 3, 2004 and includes changes enacted and in force by that date. For the most current information, click here. |
Financial Institutions Act
1 In this regulation:
"action" means an action, claim or proceeding arising out of an automobile accident;
"motor vehicle liability policy" means a policy, or a part of a policy, evidencing a contract of automobile insurance in the form, and providing coverages against perils, and for amounts required by law to be provided under a contract of automobile insurance.
2 (1) Each of subsections (2) and (3) is a condition of every business authorization issued to, or held by, an insurance company or extraprovincial insurance company.
(2) In an action brought in British Columbia against an insurance company or its insured or an extraprovincial insurance corporation or its insured under a contract of automobile insurance made outside British Columbia the insurance company or extraprovincial corporation
(a) shall appear,
(b) shall not set up any defence to the action, including a defence as to the limit or limits of liability under the contract made outside British Columbia that might not be set up if the contract were evidenced by a motor vehicle liability insurance policy issued in British Columbia, and
(c) shall satisfy any final judgement rendered against it or its insured in the action in respect of any type or class of coverage provided under the contract, and in respect of any type or class of coverage required by law to be provided under a contract of automobile insurance in British Columbia, up to the greater of
(i) the amount and limits for that type or class of coverage or coverages, provided under the contract, or
(ii) the minimum for that type or class of coverage, or coverages, required by law to be provided under a contract of automobile insurance in British Columbia, exclusive of interest and costs, and subject to any priorities as to bodily injury or property damage with respect to such minimum amounts and limits as may be required by law in British Columbia.
(3) In an action brought in another province or territory of Canada against an insurance company or its insured or against an extraprovincial corporation or its insured under a contract of automobile insurance made in British Columbia, the insurance company or extraprovincial insurance corporation
(a) shall appear,
(b) shall not set up a defence to the action, including a defence as to the limit or limits of liability under the contract made in British Columbia that might not be set up if the contract were evidenced by a motor vehicle liability insurance policy issued in the other province or territory, and
(c) shall satisfy any final judgement rendered against it, or its insured in the action in respect of any type or class of coverage provided under the contract, and in respect of any type or class of coverage required by law to be provided under a contract of automobile insurance in the other province or territory, up to the greater of
(i) the amounts and limits for that type or class of coverage, or coverages, provided under the contract, or
(ii) the minimum for that type or class of coverage, or coverages, required by law to be provided under a contract of automobile insurance in the other province or territory, exclusive of interest and costs, and subject to any priorities as to bodily injury or property damage with respect to such minimum amounts and limits as may be required by law in the other province or territory.
[Provisions of the Financial Institutions Act, R.S.B.C. 1996, c. 141, relevant to the enactment of this regulation: section 289]
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