Which of the following are sources of insurance law in Canada?

• A. The Canadian Constitution
• B. Common Law
• C. Legislation and Regulation
• D. All of the above

Answer: (D)

Insurance law in Canada comes from several interlocking sources. The Constitution sets the division of powers between federal and provincial governments, establishing which kinds of insurance rules each level can create and enforce. Common Law, developed through court decisions, governs how insurance contracts are interpreted, what constitutes misrepresentation or non-disclosure, and the remedies available to insureds and insurers. Legislation and Regulation include statutes like provincial Insurance Acts and the rules issued by provincial regulators, along with applicable federal statutes and regulatory guidelines, which set licensing, solvency, policy form standards, disclosure requirements, and enforcement mechanisms. Because each of these areas contributes to how insurance is regulated and practiced, all three are sources of insurance law in Canada.