Canada: Regulatory fee on business insurance coverage reduced (Alberta)
Alberta has reduced its regulatory fee related to business insurance coverage
Alberta has reduced its regulatory fee related to business insurance coverage
Businesses and individuals required to pay the regulatory fee on insurance coverage for risks in Alberta that was purchased from an unlicensed insurer in the province will now benefit from a lower charge.
Alberta has reduced its regulatory fee related to these insurance premiums to 10% (from 50%), effective 31 May 2022. Generally, affected insured persons must disclose the insurance coverage and pay this fee within 30 days of receiving the insurance coverage. Read TaxNewsFlash
Compliance with Alberta rules
In general, the compliance rules related to these fees in Alberta remain the same. Businesses and individuals that acquire this type of insurance coverage are required to notify the province through its online Insurance Regulatory Information System and pay the regulatory fee within 30 days of the earlier of signing the insurance contract or receiving any policy, interim receipt or insuring document.
Businesses and individuals that do not disclose and pay the 10% fee on time are subject also to a 10% penalty (recently reduced from 50%) calculated on the regulatory fee. Alberta has also indicated in its guidance that the 30-day deadline cannot be extended.
Note that other special rules and deadlines apply for insurance purchased through a licensed special broker.
Read a July 2022 report prepared by the KPMG member firm in Canada
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