On the federal side, the industry continues to await the proclamation of Bill C-57 and the completion of the Ministry of Finance's 2006 Financial Institutions Legislation Review.

Several provinces are also undertaking reviews of their insurance legislation. British Columbia and Alberta have combined their efforts for a joint review of their respective legislation. New Brunswick will be implementing new regulations regarding adjusters and the Québec regulator will continue its study of the distribution of financial products in that province.

Finally, the industry also awaits the Supreme Court of Canada's decisions in the Fidler and Childs cases, which deal with punitive damages in the disability context, and social host responsibility, respectively.

1. 2006 Financial Institutions Review

• undertaken by the Federal Ministry of Finance in anticipation of the
  Insurance Companies Act sunset provision in October 2006

• White Paper was expected in fall 2005 and then federal election called

• White Paper may be delivered in summer 2006

2. Bill C-57

• waiting for proclamation into force

• makes changes to the Insurance Companies Act to, among other things,  make it more consistent with the Canada Business Corporations Act regarding corporate governance

3. Senate Standing Committee on Banking, Trade and Commerce

• conducting a review of consumer issues arising in the financial services sector

• order of reference issued in November 2004 with no paper released to date

Regulatory

4. The Canadian Council of Insurance Regulators (CCIR) Consultation Paper re: Insurance Agent and Broker Reciprocal Licensing

• call for submissions issued in December 2005

• deadline for submissions was January 26, 2006

5. CCIR Consultation Paper re: Relationships Between Insurers
   and Sales Intermediaries - Achieving Best Practices

• call for submissions issued in June 2005

• summary of submissions released in November 2005

• third paper, "Managing Conflicts of Interest: A Consultation Paper on Enhancing and Harmonizing Best Practices", released in February 2006, which contained the three recommendations that the Industry Practices Review Committee proposes to make at the Spring 2006 meeting

6. CCIR Consultation Paper re: Privilege and Whistle-Blower Protection

• call for submissions issued in December 2005

• deadline for submissions was February 28, 2006

7. Financial Institutions Commission of British Columbia and the B.C. Ministry of Finance review of the province's Insurance Act

• call for submissions issued in November 2005

• deadline for submissions was January 15, 2006

• a discussion paper, inviting more focussed public comment on issues and options, will be published likely in spring 2006 once submissions have been reviewed

• the review is being conducted jointly with the Alberta government which is reviewing the Insurance Act (Alberta)

8. Québec regulators review of the distribution of insurance products

• regulator continues to "crack down" on breaches of the restriction on insurer ownership of brokers as well as the interdependency of that relationship

• regulator also released proposed amendments on March 3, 2006 to the regulations regarding the information to be provided to consumers by property and casualty intermediaries

• deadline for comments was April 3, 2006

9. New Brunswick to pass new regulations regarding <>insurance adjusters

Litigation

10. Fidler decision from SCC

• heard on December 6, 2005; judgment reserved

• decision should clarify issues relating to punitive damages arising out of disability claims (Asselstine also raises similar issues)

11. Childs decision from SCC

• heard in January 2006; judgment reserved

• issue of social host responsibility - specifically, whether a duty of care is owed by a host to those injured as a result of the negligence of an impaired driver who consumed alcohol at the host's residence

12. Canadian Western Bank decision from SCC

• argument to be heard on April 11, 2006

• issue of provincial insurance licensing jurisdiction over banks

13. Re: Cavell decision from Ontario C.A.

• heard in November 2005, judgment reserved

• issue of Canadian Court approval of U.K. solvent schemes of arrangement

Conclusion

Stikeman Elliott will be publishing further periodic updates over the next year on these developments and decisions. In the meantime, should you wish any additional information, please contact your Stikeman Elliott representative or any of the following authors:

W. Brian Rose

Stuart Carruthers

Alan D'Silva

Nevinne Hassan