Regulation details new classes of insurance in New Brunswick

A regulation has been added to New Brunswick’s Insurance Act that spells out new classes, including legal expense insurance, a relatively new form of insurance in Canada.

The Classes of Insurance Regulation – Insurance Act, filed on April 24, details the additional classes: legal expenses insurance, credit protection insurance, fidelity insurance, liability insurance, mortgage insurance, property insurance, surety insurance and title insurance.

Specifics of some of the classes of insurance follow:

• Legal expenses insurance – insurance against costs incurred by a person or persons for legal services specified in the policy, including any retainer and fees incurred for the services, and other costs incurred in respect of the provision of the services;
• Credit protection insurance – insurance under which an insurer undertakes to pay off credit balances or debts of an individual, in whole or in part, in the event of an impairment or potential impairment in the individual’s income or ability to earn income;
• Fidelity insurance – insurance against loss caused by the theft, abuse of trust or unfaithful performance of duties by a person in a position of trust, or insurance under which an insurer undertakes to guarantee the proper fulfillment of the duties of an office; and
• Mortgage insurance – insurance against loss caused by default on the part of a borrower under a loan secured by a mortgage or charge on, or other security interest in, real property.