In what lawyers are calling an “extremely rare” move, the Ontario Court of Appeal has expressly overruled one of its own past decisions.
Smokers can sometimes pay twice as much as non-smokers for life insurance because of the correlation with more health problems.
“Most people don’t realize you have to have training, have insurance and be qualified under Transport Canada.”
BY JODIE SINNEMA, EDMONTON JOURNAL
EDMONTON – Insurance payouts could likely near $1 billion this year for the 80 per cent of Alberta farmers hit hard by this year’s drought, provincial agriculture representatives said Thursday.
Crop insurance programs have already paid out $70 million to farmers who have lost crops to drought, grasshoppers or hail. That number is expected to rise to between $700 million and $900 million as farmers head into harvest and file claims. That estimate is based on the best, most optimistic weather forecasts, so if there are more hail storms or an early frost, the number will rise.
Last year, when many farmers harvested bumper crops, the same programs paid out $371 million.
A $2-billion reserve fund in the Agriculture Financial Services Corporation’s insurance program, collected through premiums over the past 10 years, will cover the additional costs so neither the province nor taxpayers will have to foot the bill.
“There is no doubt that the early snow melt, dry spring and recent hail storms have taken a toll,” Agriculture and Forestry Minister Oneil Carlier said Thursday.
“While significant rainfall in July has provided some relief to portions of the province, we know that areas of the province remain very dry and some producers are still struggling.”
The rain has been spotty, with some farmers growing fairly good crops while their neighbours’ crops are stunted. In general, the worst hit areas are in northern Alberta in the Peace Country region, counties north of Edmonton, a strip in the province’s southeast and near Cypress in the south. Three counties added their names Thursday to the areas declaring agricultural emergencies, bringing the total to 17 counties declaring severe drought states. About two-thirds of those counties are north of Edmonton, including Lac Ste. Anne and Westlock, Thorhild and Sturgeon counties.
About 80 per cent of Alberta farmers are expected to feel the drought’s financial impact, with half of those likely taking in half the typical crop.
“What does that look like? If you take it where half your revenue from the year is gone, that’s really what it comes down to,” said Merle Jacobson, chief operating officer for Agriculture Financial Services Corporation, which administers the insurance programs for farmers. “It really makes it a challenge.”
The province estimates crop yields will be 25 to 30 per cent smaller than the average over the past five years. That’s similar to the drought in 2009, but less severe than the one in 2002 that devastated large areas of the province.
To help out beyond the typical insurance programs, the province is working with municipalities to find underused Crown land that hard-hit farmers could sub-let to feed their animals. Farmers filling up their dugouts and reservoirs with water pumped from provincial lakes and rivers will also pay half the rental fees they usually do, with the reduced pumping fees retroactive to April 1. About 50 people have used the water pumping program this year, although the province is prepared to see up to 1,400 clients coming forward to fill dugouts for cattle.
READ MORE HERE: Insurance payouts to drought-hit farmers will likely near $1 billion
Last year, when stellar crops created an ideal year, the Agriculture Financial Services Corporation spent $371 million on several crop insurance programs. That amounted to 50 per cent of premiums brought in.
During the last significant drought in 2009, insurance payouts amounted to about 111 per cent of premiums paid.
In 2002, during a one-in-100-year drought, insurance payouts were just shy of 400 per cent of premiums.
This year’s drought insurance payout is estimated to be 120 to 125 per cent of premiums.
By Steve Morales | FindLaw Canada
It raises a question that some people take for granted? Are you covered for natural disasters or “acts of God”?
First off, and to get technical, “act of God” isn’t used in Canada. It’s more of an American expression. In Canada, insurers use “peril” to describe those catastrophic unexpected events that can damage your home and property. However, you’re likely not protected against all perils.
Home insurance policies typically cover “named perils,” or disasters specifically designated in your policy. If you don’t see “tornado” or “earthquake” clearly named in your policy, there’s a good chance you’re not covered for it.
Damage from natural and unpredictable events such as lightning, wind storms or hail are generally covered in a basic home insurance package.
However, there are many uninsured perils that could affect you. These are predictable events that generally aren’t covered, although you can sometimes buy a broader coverage or specific policies to cover them.
A major one is flooding. It’s the most common type of natural disaster in Canada and many companies simply don’t cover it. In insurance terms though, “flooding” means an overland deluge from rivers or lakes, not damage from a broken water main.
If you live in a floodplain, as many Canadians do, then a flood is considered a predictable event and you likely can’t get coverage for it.
Earthquakes might be a more surprising uninsured peril. While you probably don’t think of Canada being a hotbed of earthquakes, the country actually experiences around 4,000 every year. Many are minor, but the point is they’re somewhat predictable and they’re often not covered in standard home insurance either.
Of course, policies and providers vary greatly, so maybe you’re covered for all this stuff and you’re not sweating the floods sweeping through the prairies.
The bottom line though, is not to assume you’re covered. Just because something seems like it’ll be covered, that doesn’t make it so.
See more at: findlaw.ca
By John Tilak
TORONTO (Reuters) – Manulife Financial Corp MFC.TO reported a higher adjusted quarterly profit that was in line with market expectations on Thursday, boosted by growth in its wealth management and life insurance operations.
Core profit at its wealth and asset management business climbed 20 percent in the second quarter, while earnings at its insurance division rose 22 percent. The company says core profit is a measure of underlying earnings capacity that excludes the impact of short-term factors such as fluctuations in interest rates.
Canada’s largest insurer said assets under management and administration rose to C$883 billion ($670.87 billion), up 39 percent, as it was helped by the acquisition of New York Life’s retirement plan services.
Manulife, which has a presence in Canada, the United States and Asia, recorded double-digit earnings growth in its Asian and Canadian operations.
The company has been expanding in Asia, where core earnings rose 30 percent to C$300 million, making up about a third of its total profit. Growth was supported in particular by sales in Japan, Hong Kong and Singapore.
“Asia’s been a substantial part of our earnings for some time, but we have gotten momentum over the last several quarters into our core earnings,” Chief Financial Officer Steve Roder said in an interview.
A sales push launched a few years ago and a move to increase regional diversification within the continent are starting to reflect on the bottom line, he said.
The company is also on track to meet its earnings target for 2016, Roder added. Manulife has previously said that it expects to record more than C$4 billion in core earnings in 2016.
The Toronto-based company earned C$600 million, or 29 Canadian cents a share, in the second quarter, compared with C$943 million, or 49 Canadian cents a share, a year earlier.
Beyond the impact of a steeper yield curve in several markets on net income, the company was also hurt by acquisition-related charges, which involved C$54 million in integration costs involving recent deals.
Core profit climbed to 44 Canadian cents per share, from 36 cents a share a year ago.