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Difference between revisions of "Claims Involving Out-of-province Insurers or Accidents (12:XIII)"
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Claims Involving Out-of-province Insurers or Accidents (12:XIII) (view source)
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=== 1. Interprovincial or International Reciprocity === | === 1. Interprovincial or International Reciprocity === | ||
Each Canadian province and territory and each U.S. state has legislation governing the licensing, operation, and insurance coverage of motor vehicles. | Each Canadian province and territory and each U.S. state has legislation governing the licensing, operation, and insurance coverage of motor vehicles. Provinces cannot regulate insurers operating outside of their borders. However, out-of-province insurers often agree to be bound by the court rules in British Columbia if their insured vehicle causes an accident by way of B.C. business authorizations (licences) or a Power of Attorney and Undertaking (“PAU”). | ||
The out-of-province insurer | The Canadian Council of Insurance Regulators maintains a repository of all PAUs filed in Canada by U.S. and Canadian auto insurers. A listing of companies that have filed a PAU can be found on the [[www.ccir-ccrra.org CCIR’s website]]. A complete listing of all British Columbia and extraprovincial insurance companies that have been issued “business authorizations” in British Columbia is available from FICOM and can be downloaded from their [[www.fic.gov.bc.ca website]]. | ||
In the case of a claim made against the insured of an out-of-province insurer, PAUs or licences obligate the out-of-province insurer to: | |||
*i) file an appearance in B.C. court; | |||
*ii) not raise any coverage defence which would not be available to an insurer in B.C. respecting a B.C. insured; and | |||
*iii) pay any motor vehicle judgment against the insured up to the minimum liability limits required by B.C. (i.e. $200,000). | |||
:'''NOTE:''' Failure by an out-of-province insurer to disclose that it has signed a PAU cannot be grounds for claims of bad faith or negligence ([http://www.canlii.org/en/bc/bcca/doc/2009/2009bcca78/2009bcca78.html?autocompleteStr=pearlman%20v%20amer&autocompletePos=1 ''Pearlman v American Commerce Insurance Co''], 2009 BCCA 78). | |||
=== 2. No Fault Benefits and Underinsured Motorist Protection (UMP) Entitlements === | === 2. No Fault Benefits and Underinsured Motorist Protection (UMP) Entitlements === | ||
