Federal versus State Super Vision of Insurance. A Canadian View

Abstract

The entry of the Government in the United States of America into the insurance regulatory field has created quite a turmoil in insurance circles on this continent. Canada has had both federal and supervision of insurance almost since the confederation of the provinces which took place in 1867. The struggle of federal versus rights is even now being fought out in Canada. What goes on in the United Sates of America in insurance matters is of major interest to us in Canada, for we are very susceptible to American influences. There is a curious similarity between insurance developments in the United States and Canada, yet remarkable diversities exist between the two countries in this insurance problem. There are ten provinces in Canada bound by the British North America Act of 1867.' There will be no confusion if I use state for in dealing with Canada and refer to the Federal Government rather than the Dominion Government at Ottawa. The Supreme Court of the United States at Washington is the final arbiter on law and the Constitution. In Canada, until very recently, the Judicial Committee of the Privy Council (a committee of the House of Lords) in London, England, exercised this right. In the future this right will be exercised by the Supreme Court of Canada at Ottawa. To those who would say that on this account Canada is just at the threshold of nationhood, it must be pointed out that the existence of a dual nationality and dual language in Canada gives this problem of state!' rights such importance as to be the dominating factor in constitutional changes. In Canada 30 per cent of the population of 13!/2 millions are of French Canadian origin. They are mainly concentrated in the province of Quebec, with an overflow into the adjoining provinces. In the cities the businessmen, shop assistants, and taxi drivers will speak English with varying degrees of proficiency, and an outstanding lawyer as the Prime Minister of Canada, Mr. St. Laurent, and others known to me, are masters of the English language. The rest of the population is predominantly British in origin and sentiment. His language, religion, law, and