Alberta and B.C. yesterday announced that their respective governments have cooperated on harmonized amendments to their insurance laws that aim to enhance consumer protection and increase efficiencies for the insurance industry.

The provinces said that the legislation was introduced in the spirit of the Trade, Investment and Labour Mobility Agreement, which is a joint effort of Alberta and B.C. to remove barriers between the two provinces.

In drafting and finalizing the amendments, Alberta and B.C. developed a harmonized approach that will allow businesses to more effectively compete in both jurisdictions. The changes will also allow people to move between jurisdictions with the confidence that their insurance coverage will be consistent.

Some of the key elements of the legislation include: lengthening the limitation period in which legal claims against insurance companies must be made from one to two years; improving dispute resolution and complaint handling processes; giving both provinces the flexibility to deal with fire coverage exclusions through regulation; protecting an “innocent co-insured” who may otherwise be denied coverage due to the wrongdoing of another; allowing a person to cancel an insurance contract if they feel their life or health is at risk because there is an insurance policy on their life; facilitating the use of modern distribution channels, such as electronic commerce; and, allowing consumers greater access to documents they may need from the insurer at the time of a claim.

B.C. has also adopted an Alberta provision giving consumers a cooling-off period in which they can rescind their insurance contract.

Alberta’s Minister of Finance and Enterprise, Iris Evans, and B.C. Finance Minister Carole Taylor introduced the harmonized amendments to their province’s respective insurance acts, highlighting the importance of enhanced consumer protection measures.

“The Government of Alberta is very excited about the work we are doing with B.C. to reduce barriers between the two provinces, for the benefit of residents and businesses in both jurisdictions,” said Evans. “I look forward to seeing the difference these legislative changes make in the insurance marketplace – both for consumers and insurers. I believe we will see positive change as a result of this cooperative effort.”

“The B.C. government made a commitment to a regulatory climate that supports our strong and vibrant economy,” said Taylor. “At the same time, it is vital that we protect consumer interests. We have accomplished that balance in this legislation while working together with Alberta to secure a higher common approach on our shared interests.”