Saskatchewan Insurance Act
The Saskatchewan Insurance Act provides the framework for regulating insurance companies and agents doing business in the province. If you're an insurer or agent operating in Saskatchewan you have to comply with the act. The act defines insurance, but it also explains the responsibilities of governing bodies, insurers and policyholders. It outlines what an insurance company is required to do when you make a claim.
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Definition
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The act defines insurance as the undertaking by a company to indemnify (compensate) you against loss or liability in regards to a certain risk or peril that you may be exposed to under your policy, or to pay a sum of money or another thing of value once an event takes place that causes loss. This includes life insurance.
Types
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The act outlines provisions for all lines of insurance, such as automobile, life, accident and sickness, livestock, hail and weather insurance. The act explains such things as: how loss or damage should be interpreted by insurance companies; the minimum allowable policy terms; an explanation of your policy's contents and exemptions; and appropriate claims procedures.
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Significance
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The Justice and Attorney General (JAG) states that the insurance act contains standards and requirements that seek to keep insurance companies in check. For example, the act sets insurers' capital requirements; investment standards; mandatory reserve requirements; and mandatory membership in a compensation plan in the event that a company becomes insolvent. Sections 81 through 94 of the act explain these provisions.
Function
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The act is mostly there to set out the statutory responsibilities of insurers with respect to contracts and content; the rights of policyholders; and how policies are to be administered. For example, section 103 states that all the terms and conditions of a contract of insurance must be explained in full in the policy or written in a document attached to a policy when issued.
Considerations
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The act describes the responsibilities of the superintendent of insurance. The superintendent is there to protect consumers. It sets standards for insurance companies to follow. According to JAG, it provides licenses for companies to conduct business; maintains a record of all licensed insurers; prepares an annual report summarizing the activities of insurers and investigates consumer complaints. The superintendent has the authority to suspend or cancel an insurer's license.
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References
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