Civil Service Insurance Regulations (C.R.C., c. 401)

Short Title

1 These Regulations may be cited as the Civil Service Insurance Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Civil Service Insurance Act. (Loi)

insurance contract

insurance contract, insured and insurance money[Revoked, SOR/88-130, s. 1]

Minister

Minister[Revoked, SOR/88-130, s. 1]

Superintendent

Superintendent[Revoked, SOR/88-130, s. 1]

General

3 Insurance contracts shall be signed by, or bear the lithographed or facsimile signature of the Minister, and be countersigned by the Superintendent.

• 4 (1) A period of 30 days grace is allowed for the payment of any premium after the first premium during which period the contract shall remain in full force, but if the insured dies within that period, any overdue premiums shall be deducted from the amount of insurance money payable.

• (2) If, after an insurance contract has been in force for at least two years, two or more annual premiums or their half-yearly, quarterly or monthly equivalents having been paid thereon, any premium is not paid on or before its due date and remains unpaid at the expiration of a period of 30 days following its due date, the contract shall thereupon be deemed to be changed to one of paid-up insurance for such amount as the net level premium reserve under the contract, calculated according to the H.M. Mortality Table of the Institute of Actuaries of Great Britain and a rate of interest of six per cent per annum, at the due date of the unpaid premium, will purchase when applied as at that date as a single premium on the basis of the said table of mortality and rate of interest.

• (3) Where a contract has been changed to one of paid-up insurance in accordance with subsection (2), and where less than five years have elapsed since the due date of the first unpaid premium, the contract may be reinstated to its original form if the insured pays all the overdue premiums and, if more than 90 days have elapsed since the due date of the first unpaid premium, also pays interest on the overdue premiums at a rate of six per cent per annum compounded annually from their respective due dates to the date of reinstatement and provides to the Minister evidence of insurability.

• (4) The insured may, with the consent of the beneficiary, surrender his insurance contract and there shall be paid to him upon such surrender a cash surrender value therefor equal to the level premium reserve under the contract calculated according to the H.M. Mortality Table of the Institute of Actuaries of Great Britain at a rate of interest of six per cent per annum.

Adding Beneficiary and Varying Apportionment

• 5 (1) A person who is eligible under the Act to be a beneficiary, but was not originally named as a beneficiary, may be made a beneficiary by an instrument signed by the insured if

  • (a) the instrument is attached to the insurance contract;

  • (b) an endorsement is made on the insurance contract with respect to the instrument; or

  • (c) the instrument identifies or describes the insurance contract.

• (2) An apportionment of insurance money may be varied by a declaration of the insured.

Proof of Death and Age

6 A person claiming under an insurance contract shall furnish proof to the Superintendent of

• (a) the death of the insured; and

• (b) the age of the insured, unless such proof of age has been given previously.

7 If the age of the insured is understated in an application for an insurance contract, the amount payable under that contract shall be the amount that bears the same ratio to the sum assured that the premium proper to the age stated of the insured bears to the premium proper to the actual age of the insured, the stated age and the actual age being both taken as at the date of the contract; the premium proper herein referred to is the net annual premium shown by the mortality table mentioned in section 4, the rate of interest being six per cent as therein mentioned.

8 The age of the insured at his birthday nearest the date of an insurance contract shall be taken to be his age for the purpose of fixing and determining the premium payable by the insured under that contract.

Options of Payments to Beneficiary

• 9 (1) The insurance money or the portion thereof to which any beneficiary is entitled may, at the option of the insured, be made payable in whole or in part

  • (a) in one sum;

  • (b) as an annuity-certain for a term of years;

  • (c) as a life annuity to the beneficiary; or

  • (d) as an annuity guaranteed for a term of 5, 10, 15 or 20 years and so long thereafter as the beneficiary lives.

• (2) If option (1)(b) or (d) is chosen, and if the beneficiary dies before the specified term of years has been completed, the remaining annuity payments payable within that term shall be payable to such other beneficiary or beneficiaries as the insured had designated for that purpose or, failing such designation, the commuted value of the remaining payments shall be payable in one sum to the beneficiary’s estate.

• (3) Notwithstanding section 10, where the annual payment that would be paid or that is in payment under an annuity is less than $240,

  • (a) the insurance money or portion thereof to which a beneficiary is entitled, or

  • (b) the commuted value of the remaining annuity payments

  may, at the request of the beneficiary, be paid in one lump sum.

• (4) For the purposes of subsections (2) and (3), the commuted value of the remaining annuity payments shall be determined on the same actuarial bases as those used in determining the amount of the annual payment of the annuity.

• (5) The annuities payable under the Act shall be calculated on the basis of the 1971 Individual Annuity Mortality Table, as published in Vol. XXIII of the Transactions of The Society by Actuaries, and the following rates of interest:

  • (a) for the first 15 years of the term of the annuity, an annual rate of interest equal to the most recent annual yield to maturity of all outstanding obligations of the Government of Canada as fixed by the Minister under subsection 113(2) of the Canada Pension Plan, plus 0.5 per cent rounded to the nearest 0.25 per cent; and

  • (b) for the remainder of the term of the annuity, if any, an annual rate of 4.5 per cent.

• 10 (1) The insured shall elect in his application the plan on which the insurance money shall be paid and shall, in respect of each beneficiary, provide that, after his death, the plan elected

  • (a) shall not be varied; or

  • (b) may be varied at the option of the beneficiary; or

  • (c) may be varied at the option of the beneficiary with the consent of the Minister.

• (2) The election made by the insured in his application may be subsequently varied by declaration of the insured endorsed upon or attached to the insurance contract.

• (3) A duplicate of any declaration made under subsection (2) shall be filed with the Minister at the time such declaration is made.

11 The insurance money payable under an insurance contract may be dealt with by the insured only to the extent authorized by the Act, and any attempted dealing therewith by pledge, assignment or otherwise not so authorized shall be void.

Risk Not Assumed

12 Self-destruction of the insured within two years from the date of an insurance contract is a risk that is not assumed in the contract, and if the insured dies from such cause within the said period the amount payable under the contract shall be the reserve thereon calculated in accordance with section 4.

Medical Examiner and Medical Referee

13 to 15 [Revoked, SOR/88-130, s. 6]

Civil Service Insurance Account

• 16 (1) There shall be an account in the Consolidated Revenue Fund to be called the Civil Service Insurance Account (in this section referred to as “the Account”) to which shall be credited all moneys received and to which shall be charged all moneys paid under the Act.

• (2) At the end of each fiscal year the liability outstanding arising out of contracts entered into under the Act shall be calculated by the Superintendent.

• (3) If the liability calculated under subsection (2) is greater than the balance of the Account at the date of such calculation, there shall be credited to the Account an amount equal to the excess of the liability over the balance of the Account.

• (4) If the liability calculated under subsection (2) is less than the balance of the Account at the date of such calculation, there shall be charged to the Account an amount equal to the amount by which the balance of the Account exceeds the liability.