AI-assisted research summary: This provision lists when an insurer may take adverse contractual action for automobile insurance, and sets limits on some vehicle inspection and fraud-related reasons.
(Consolidated up to 87/2023) ALBERTA REGULATION 28/2015 Insurance Act ADVERSE CONTRACTUAL ACTION REGULATION Additional reasons 1 (1) In this section, (a) “Premiums Regulation” means the Automobile Insurance Premiums Regulation (AR 117/2014); (b) “private passenger vehicle” means a private passenger vehicle as defined in section 1 of the Premiums Regulation ; (c) “salvage motor vehicle” means a motor vehicle that is a salvage motor vehicle as set out in Part 1 of the Vehicle Inspection Regulation (AR 211/2006); (d) “salvage motor vehicle inspection certificate” means a certificate as defined in section 1(1)(d) of the Vehicle Inspection Regulation (AR 211/2006). (2) In addition to the reasons set out in section 555(3)(a) to (f) of the Act, the following are reasons under which adverse contractual action may be taken: (a) the insured or the applicant (i) fails to complete the approved application form, (ii) provides false information on the approved application form, (iii) makes any misrepresentation in the information provided for the purposes of obtaining, updating or renewing an automobile insurance policy, including on the application form, (iv) fails to submit any information required in the approved application form, or (v) has a history of fraudulent activity in relation to an automobile insurance policy and the most recent instance of such an activity occurred less than 7 years before the day of the request to obtain, update or renew an automobile insurance policy; (a.1) the insurer reasonably believes that the insured or the applicant will use the automobile insurance policy or the automobile for fraudulent purposes; (b) subject to subsection (3), the insured or the applicant refuses to provide, within the time provided by the insurer, a completed approved vehicle inspection report for a private passenger vehicle that is at least 12 model years old; (c) the insured or the applicant, after having the vehicle inspection report completed, refuses, within 30 days of the report being completed, to repair a component of the vehicle that has been identified in the inspection report as being unsafe; (d) the insurer only insures vehicles that are not private passenger vehicles; (e) the applicant does not hold a valid operator’s licence to operate a private passenger vehicle in Canada; (f) the insured or the applicant, with respect to a private passenger vehicle that is a salvage motor vehicle, refuses to provide, within the time provided by the insurer, a subsisting salvage motor vehicle inspection certificate. (2.1) For the purposes of subsection (2)(a.1), the fact that the insured or the applicant is or has been a bankrupt or in a consumer proposal within the meaning of the Bankruptcy and Insolvency Act (Canada) is not, in and of itself without any other evidence of fraudulent activity, sufficient to substantiate a reasonable belief that the insured or the applicant will use the automobile insurance policy or the automobile for fraudulent purposes. (3) An insurer may require a policy holder to complete a vehicle inspection report for each vehicle that is 12 model years or older only once every 3 years. AR 28/2015 s1;87/2023 Expiry 2 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on April 30, 2029. AR 28/2015 s2;177/2020;87/2023 Repeal 3 The Adverse Contractual Action Regulation (AR 98/2005) is repealed.