(2) If permission has been given for other insurance under paragraph (e) of this condition, the insurer will be liable only for his rateable proportion of such loss or damage.

Inspection.

7. The insurer shall be permitted at all reasonable times to inspect the automobile and its equipment.

Accidents to 8. (1) Upon the occurrence of an accident involving bodily the persons injuries or death, or damage to property of others, the insured and property shall promptly give written notice thereof to the insurer, with of others. the fullest information obtainable at the time. The insured shall give like notice, with full particulars of any claim made on account of such accident, and every writ, letter, document or advice received by the insured from or on behalf of any claimant shall be immediately forwarded to the insurer.

(2) The insured shall not voluntarily assume any liability or settle any claim except at his own cost. The insured shall not interfere in any negotiations for settlement or in any legal proceeding, but, whenever requested by the insurer, shall aid in securing information and evidence and the attendance of any witnesses, and shall co-operate with the insurer, except in a pecuniary way, in all matters which the insurer deems necessary in the defence of any action or proceeding or in the prosecution of any appeal.

(3) No action to recover the amount of a claim under this policy shall lie against the insurer unless the foregoing requirements are complied with and such action is brought after the amount of the loss has been ascertained either by a judgment against the insured after trial of the issue or by agreement between the parties with the written consent of the insurer, and no such action shall lie in either event unless brought within one year thereafter. Loss or damage 9. (1) Upon the occurrence of any loss of or damage to the insured automobile, the insured shall, if such loss or damage is covered by this policy:

to the automobile.

(a) forthwith give notice thereof, in writing, to the insurer, with fullest information obtainable at the time, and shall, at the expense of the insurer, and as far as reasonably possible, protect the automobile from further loss or damage, and any such further loss or damage accruing directly or indirectly from a failure to protect shall not be recoverable hereunder. No repairs shall be undertaken or any physical evidence of the loss or damage removed without the written consent of the insurer, except such repairs as are immediately necessary for the protection of the automobile from further loss or damage; or until the insurer has had a reasonable time to make the examination provided for in subsection (2) of this condition;

(b) deliver to the insurer within ninety days of the date of the loss or damage a statutory declaration stating the place, time and cause of the loss or damage, so far as the insured knows or believes, the interest of the insured and of all others in the automobile, the sound value thereof, the amount of loss or damage thereto, all encumbrances thereon, and all other insurance, whether valid or not, covering the automobile, and that the loss or damage did not occur through any wilful act or neglect, procurement, means or connivance of the insured.

(2) After any loss or damage to an insured automobile, the insurer shall have right of access to an examination of such automobile by accredited agents of the insurer sufficient to enable such agents to ascertain the amount of the damage sustained.

(3) The insured shall submit to examination under oath, and shall produce for examination, at such reasonable place as is designated by the insurer or its representative, all books of account, bills, invoices and other vouchers in his possession or control which relate to the matters in question, and shall permit extracts and copies thereof to be made.

(4) The insurer shall not be liable beyond the actual cash value of the automobile at the time any loss or damage occurs, and the loss or damage shall be ascertained or estimated according to such actual cash value with proper deduction for depreciation, however caused, and shall in no event exceed what it would cost to repair or replace the automobile or any part thereof with material of like kind and quality; provided that, in the event of any part of the automobile being obsolete and out of stock, the liability of the insurer in respect thereof shall be limited to the value of such part at the time of loss or damage not exceeding the maker's last list price; the ascertainment or estimate of such loss or damage shall be made by the insured and the insurer, or, if they disagree, then by appraisers, as hereunder provided.

(5) Except where an appraisal has been had, the insurer, instead of making payment, may within a reasonable time repair, rebuild or replace the property damaged or lost with other of like kind and quality, giving written notice of its intention so to do within seven days after receipt of the proofs of loss; but there can be no abandonment of the automobile to the insurer without its consent. In the event of the insurer exercising such option, the salvage, if any, shall revert to it.

(6) In the event of disagreement as to the nature and extent of the repairs and replacements required, or as to their adequacy, if effected, or as to the amount payable in respect of any loss or damage, such questions shall be determined by appraisers before recovery can be had hereunder, whether the right to recover on the policy is disputed or not, and independently of all other questions. The insured and the insurer shall each select one appraiser, and the two so chosen shall then select a disinterested umpire. Thereafter the two appraisers together shall estimate or appraise the loss or damage, stating separately sound value and damage, or determine the adequacy of such repairs or replacements, and, failing to agree, shall submit their differences to the umpire.

(7) In case either party fails to name an appraiser within seven clear days after being served with written notice so to do, or in case the appraisers fail to agree upon an umpire within fifteen days after their appointment, or in case an appraiser or umpire refuses to act or is incapable of acting, or dies, a Judge of a Superior, County or District Court having jurisdiction in the county or district in which the appraisal is to be made may appoint such appraiser or umpire on the application of the insured or of the insurer.

(8) An award in writing of the two appraisers, or of one appraiser and the umpire, shall determine the nature and extent or adequacy of the repairs and replacements, or the amount of such loss or damage.

(9) Each party shall pay the appraiser selected by him, and shall bear equally the other expenses of the appraisal and of the umpire.

(10) Neither the insurer nor the insured shall be deemed to have waived any provision or condition of this policy by any act relating to the appraisal, or to the delivery and completion of proofs of loss, or to the investigation or adjustment of the claim.

(11) The sum for which the insurer is liable hereunder for loss or damage shall be payable within sixty days after the proof of loss herein required has been received by the insurer, but if appraisal is demanded, then within fifteen days after the award has been made by the appraisers. No suit or action, however, may be brought for the recovery of any claim unless the insured has complied with the foregoing requirements, or unless such action is commenced within one year after the happening of the loss.

Who may give notice and

proofs of claim.

10. Notice of claim may be given and proofs of claim may be made by the agent of the insured in case of the absence of the insured or in case of inability of the insured to give the notice

or make the proof, such absence or inability being satisfactorily accounted for, or in the like case, or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.

Fraud.

11. Any fraud or wilfully false statement made under oath or in a declaration in relation to any of the above particulars shall vitiate the claim of the person making the declaration in any matter affected by such fraud or false statement.

Subrogation.

12. The insurer on paying the loss shall be subrogated to the extent of such payment to all right of recovery against any third party, and on such payment or on assuming liability therefor may require from the insured a transfer of his rights against such third party, and the insured shall execute all documents properly required by the insurer to secure to it

such rights.

Cancellation.

13. (1) This policy may be cancelled at any time at the request of the insured, and the insurer shall, upon surrender of the policy, refund the excess of paid premium above the customary short rate premium for the time the policy has been in force.

(2) This policy may be cancelled at any time by the insurer giving to the insured fifteen days' notice in writing of cancellation by registered mail, or five days' notice of cancellation personally delivered, and refunding the excess of paid premium beyond the pro rata premium for the expired time. Repayment of excess premiums may be made by money, post office order, postal note or cheque. Such repayment shall accompany the notice, and in such case the fifteen days above mentioned shall commence to run from the day following the receipt of the registered letter at the post office to which it is addressed. Waiver.

14. No condition or provision of this policy, either in whole or in part, shall be deemed to have been waived or altered by the insurer, unless the waiver is clearly expressed in writing signed by the manager of the insurer or its chief agent for Canada or this province.

Notice.

15. Any written notice to the insurer may be delivered at or sent by registered post to the chief agency or head office of the insurer in this province. Written notice may be given to the insured by letter personally delivered to him or by registered letter addressed to him at his last post office address notified to the insurer, or, where no address is notified and the address is not known, addressed to him at the post office of the agency, if any, from which the application was received. R.S. 1924, c. 120, s. 5 and Sch.

155. (1.) If the policy does not insure against accident to persons Omission of or damage to property of others than the insured, statutory condition certain conditions. numbered 8 may be omitted.

(2.) If the policy does not insure against loss of or damage to the insured automobile, statutory condition numbered 9 may be omitted.

(3.) Where a statutory condition is so omitted, there shall be inserted after the condition number the following words: "This condition is not applicable to this policy and is omitted pursuant to Statute." R.S. 1924, c. 121, s. 8.

loss clause.

156. A policy may contain a clause to the effect that the insurer Partial payment of shall pay only an agreed proportion of any loss or the amount of a loss after deduction of a sum specified in the policy, in which case there shall be printed or stamped upon the face of the policy in

8

Other variations.

Relief from forfeiture.

Use of red ink.

Policies to be signed by licensed agents.

conspicuous type and in red ink the words: "This policy contains a partial payment of loss clause." R.S. 1924, c. 121, s. 9.

157. (1.) If an insurer desires to vary, omit, or add to the statutory conditions or any of them, otherwise than as provided by sections 155 and 156, there shall be printed in conspicuous type, not less in size than ten-point and in red ink, immediately after such conditions, the proposed variations or additions or a reference to the omissions, with these introductory words:—

VARIATIONS IN CONDITIONS.

This policy is issued on the above statutory conditions, with the following variations, omissions, and additions, which are, by virtue of the law of this Province, in force so far only as they shall be held to be just and reasonable to be exacted by the company.

(2.) No variation, omission, or addition shall be binding on the insured unless subsection (1) has been complied with; and any variation, omission, or addition shall be so binding only in so far as it is held by the Court before which a question relating thereto is tried to be just and reasonable. R.S. 1924, c. 121, s. 10.

158. Where there has been imperfect compliance with a statutory condition as to the proof of loss to be given by the insured or other matter or thing required to be done or omitted by the insured with respect to the loss, and a consequent forfeiture or avoidance of the insurance in whole or in part, and the Court deems it inequitable that the insurance should be forfeited or avoided on that ground, the Court may relieve against the forfeiture or avoidance on such terms as it may deem just. R.S. 1924, c. 121, s. 12.

159. No red ink shall be used in printing a policy except for the purposes mentioned in this Part and for the name, address, and emblem of the insurer and the number of the policy. R.S. 1924, c. 121, s. 11.

160. (1.) In this section "agent" means an insurance agent licensed under this Act and authorized by a licensed insurer on its behalf to solicit and receive applications for insurance, to collect premiums, and to sign or countersign policies, and whose compensation or profit therefor consists wholly of a commission on premiums derived from such business; and shall include an officer or salaried employee of the insurer resident in the Province and requested by an agent as aforesaid to sign or countersign a policy on behalf of such agent, the agent being authorized by the insurer to make the request.

(2.) No licensed insurer shall issue any policy unless the policy is signed or countersigned by an agent, but no agent shall sign a policy in blank or in otherwise incomplete condition.

(3.) This section shall not apply to a mutual company or to a contract of reinsurance. (New.)

PART VIII.

SPECIAL PROVISIONS RELATING TO MISCELLANEOUS CLASSES OF

INSURANCE AND INSURERS.

161. This Part applies only to such contracts and to such insurers Application of Part. as are expressly mentioned in any provision of this Part.

Insurance Societies.

to societies.

162. (1.) Subject to this section, this Act shall not apply to a Application of Act society which undertakes any insurance within the scope of the "Societies Act."

(2.) Every society which makes contracts of life insurance shall be licensed if the total insurance-money payable under any such contract or contracts made with a member exceeds three hundred dollars, but this subsection shall not apply to an existing society to which the "Societies Act" applies at the commencement of this Act, or to a society licensed as a fraternal benefit society under the Dominion Act, or to a trade-union maintaining under its constitution and by-laws a benefit or insurance fund for the benefit of its own members exclusively.

(3.) Sections 75 to 124 shall apply to every society which makes contracts of life insurance in the same manner as those sections apply to a fraternal society as defined by section 75.

(4.) In this and the next six sections, except clauses (a) and (b) of section 163, the expression "society" shall include a society formed or incorporated outside the Province: Provided that no such society shall make a contract in the Province or be licensed unless it is a corporation and is licensed or otherwise authorized to carry on its business by the laws of the Province or place where it is incorporated.

(5.) For the purposes of this section, a contract shall not be deemed to be a contract of life insurance by reason only that it provides for the payment of a funeral benefit. R.S. 1924, c. 117, s. 3 (part new).

163. No society shall be licensed:

(a.) Unless it is incorporated under the "Societies Act" after the commencement of this Act:

(b.) Unless its head office is in the Province and its officers reside in the Province:

(c.) If it can make contracts with persons other than its members:

(d.) Unless it has at least seventy-five members in good standing:

(e.) If, directly or indirectly, it is conducted by or in the interests of any person other than its members for his own benefit, or as a mercantile or business enterprise, or for the purpose of mercantile profit, or its property and funds

Conditions for
licence.