Dairy Livestock Insurance Plan - Crop and Livestock Insurance Act (Nova Scotia)

(b) a benefit for loss of income when, as a result of 1 or more of the perils designated in subsection 4(2), gross monthly income from the sale of milk falls below 50% of the average gross monthly income calculated in accordance with subsection 16(2).

Definitions

3 In this plan,

(a) “dairy building” means any building owned by an insured person used to house livestock or milk produced by livestock insured under this plan;

(b) “designated perils” means the perils described in Section 4;

(d) “insurance year” means the period commencing on the date that an application for insurance is approved by the Commission and ending on December 31 of the same year;

(e) “livestock” means

(i) dairy heifers housed in the Province and owned by Nova Scotia farmers whose farm businesses are registered under the Farm Registration Act, or

(ii) dairy cows, dairy heifers and female dairy calves owned by Nova Scotia farmers and grown in the Province for the purpose of producing milk under a licence issued by the Dairy Farmers of Nova Scotia in accordance with the Dairy Industry Act;

(f) “loss of income benefit” means a benefit paid to an insured person in accordance with Sections 15 to 18;

(g) “Veterinary Pathology Laboratory” means the Nova Scotia Department of Agriculture laboratory where livestock pathology tests are conducted.

Designated perils

4 (1) A person may be insured against a loss of livestock from disease due to any of the following designated perils:

(a) reportable diseases that are designated under the Health of Animals Act (Canada), except bovine spongiform encephalopathy and foot and mouth disease;

(b) fibrinous pneumonia (shipping fever);

(2) A person may receive the loss of income benefit due to any of the following designated perils:

(a) the diseases specified in subsection (1);

(b) fire;

Application for contract of insurance

5 (1) An application for a contract of insurance must be

(a) filed on a Dairy Livestock Insurance Plan - Application & Renewal form provided by the Commission;

(b) accompanied by the total premium; and

(2) A completed application is not binding upon either party until a contract of insurance is issued in respect of the application.

(3) The Commission may require an applicant to comply with any regulations made under the Animal Health and Protection Act and the Health of Animals Act (Canada) before issuing a contract of insurance.

Contract of insurance

6 (1) A contract of insurance consists of all of the following:

(a) a signed contract of insurance in Form 1;

(b) a completed application filed in accordance with Section 5; and

(2) If a document referred to in subsection (1) is amended while the contract of insurance is in force, the contract remains in effect as amended and a copy of the amendment will be delivered to the insured person.

(3) Before the Commission offers a contract of insurance to an applicant, the applicant must submit an application in the form and manner prescribed by Section 5.

(4) The Commission may refuse to offer a contract of insurance to an applicant.

(5) If the Commission refuses to offer a contract of insurance to an applicant, the Commission must refund the premium deposit, if any, that accompanied the applicant’s application.

Certificate of insurance

7 (1) The Commission will issue a certificate of insurance indicating the value of insurance coverage after the contract of insurance is approved.

(2) A certificate of insurance is in force from the date of approval of the contract of insurance by the Commission to December 31 of the same year.

Duration of contract of insurance

8 (1) A contract of insurance is in force until it is cancelled in accordance with subsection (2).

(2) A contract of insurance may be cancelled by the insured person or the Commission by giving written notice to the other party before December 31 of the year that the contract of insurance is in force.

(3) If an insured person wants to renew their contract of insurance for the upcoming year, they must file a Dairy Livestock Insurance Plan - Application & Renewal form stating the number of animals to be insured in the upcoming year before December 31 of the year that the current contract of insurance is in force.

(4) Premium amounts calculated under Section 10 are due at the time of renewal.

(5) Failure by an insured person to inform the Commission of the number of animals to be insured in the upcoming year under subsection (3) will result in cancellation of all insurance coverage after December 31 of the year that the contract of insurance is in force.

(6) Despite subsection (5), if an insured person informs the Commission of the number of animals to be insured in the upcoming year before March 31 of the upcoming year, insurance coverage will continue under the original contract of insurance.

Limitation of contract of insurance

9 A claim for indemnity is limited to the extent of the assets in the Livestock Insurance Fund balance held by the Commission.

Premium

10 (1) The base premium rate must be set by the Commission and announced on or before October 1 each year for the upcoming year.

(2) The base premium rate will be adjusted by applying a discount or surcharge in accordance with a formula set by the Commission by October 31 of each year.

(3) Despite subsections (1) and (2), the minimum premium payable by an insured person in any insurance year must be $25.

Coverage for loss of livestock from disease

11 (1) All of the dairy cows and dairy heifers 1 year of age and older that are owned by an insured person must be offered for insurance coverage.

(2) All dairy heifers 6 months of age and older are eligible for insurance coverage.

(3) All female dairy calves under 6 months of age are eligible for insurance coverage.

(4) If an insured person increases the number of livestock that they own during the period that a contract of insurance is in force, the insured person must purchase coverage for the livestock not already insured.

Established prices

12 (1) For the purpose of calculating premium and the indemnity per animal, an insured person must select

(a) 1 of the price options listed in subsection (2) for dairy cows and dairy heifers 1 year of age and older;

(b) if applicable, 1 of the price options listed in subsection (2) for dairy heifers 6 months of age and older insured; and

(2) The established price options for dairy cows and dairy heifers insured under subsections 11(1) and (2) are

(a) $400;

(b) $600;

(d) $1000;

(e) $1200;

(f) $1400;

(g) $1600;

(h) $1800; and

(i) $2000.

(3) The established price options for calves insured under subsection 11(3) are

(a) $200;

(b) $400;

(d) $800.

Notice of loss of livestock from disease

13 (1) To be eligible for a claim for the death of an animal from disease, an insured person must submit all of the following to the Commission within 72 hours of the death of the animal:

(a) a Notice of Claim Form - Dairy Livestock Disease Insurance Plan provided by the Commission for loss of livestock from disease;

(b) a written statement from a veterinarian confirming the cause of death of the animal was a designated peril.

(2) The insured person must do 1 of the following to assist in determining that the cause of death of the animal was a designated peril:

(a) if the attending veterinarian performs a necropsy on the animal, ensure that the necessary tissue specimens and blood samples are forwarded to the Veterinary Pathology Laboratory;

(b) if a necropsy is not performed on the animal, deliver the animal’s carcass to the Veterinary Pathology Laboratory.

(3) Despite subsection (2), in the event of an outbreak of fibrinous pneumonia (shipping fever) or respiratory infectious bovine rhinotracheitis (respiratory form),

(a) the first 3 animals to die must be necropsied or have their carcasses delivered to the Veterinary Pathology Laboratory; and

(b) if more than 3 animals die, the insured person must contact the Commission to determine whether additional sampling is required.

Evaluation of claim for loss of livestock from disease

14 (1) Subject to Section 9, the maximum indemnity that the Commission is liable for for a claim for loss of livestock from disease under a contract of insurance is the insured value of that livestock less payments received

(a) under the Health of Animals Act (Canada);

(b) for salvage; and

(2) The Commission is not responsible for transportation costs for salvage, cleanup costs or costs incurred by an insured person to support a claim.

(3) Animals that recover after a claim and remain in the herd for 60 or more days after diagnosis by a veterinarian are not eligible to be paid for under the original claim submitted.

Notice of loss of income

15 An insured person must do all of the following to be eligible for a claim for loss of income:

(a) notify the Commission within 10 days of any event that may result in a loss of income claim;

(b) submit a Notice of Claim Form - Dairy Livestock Disease Insurance Plan provided by the Commission for loss of income to the Commission within 10 days after the first monthly payment of income from the dairy that is less than 50% of the insured person’s average gross monthly income as calculated under subsection 16(1).

Extent of coverage under loss of income benefit

16 (1) For the purpose of the loss of income benefit, an applicant’s maximum insurable income is 50% of the applicant’s average gross monthly income calculated under subsection (2).

(2) The applicant’s average gross monthly income must be

(a) stated on the Dairy Livestock Insurance Plan - Application & Renewal form and based on the applicant’s monthly receipts from the sale of milk over the 12-month period prior to a loss; and

(b) pro-rated to reflect any reduction in the applicant’s quota holding at the time a claim is made compared to the quota holding at the time of the application for the contract of insurance.

Evaluation of claim for loss of income benefit

17 (1) Subject to Section 9, the Commission will determine the reduction of income each month by subtracting the actual monthly payment received from the sale of milk and the value of any compensation from the lease or rental of quota or other such contractual arrangements that provide for the sale of milk for the month from the maximum insurable income described in subsection 16(1).

(2) The maximum amount payable by the Commission, in accordance with subsection 16(1), is 50% of the applicant’s average gross monthly income as calculated under subsection 16(2).

(3) The maximum period of payments is 4 months and no payment will be made if the insured person does not continue in business.

Claim payable under loss of income benefit

18 If an insured person suffers a loss of income for a period of more than 4 months, the insured person may select the period during which the income benefit payment may be made.

Arbitration

19 (1) If the Commission and an insured person fail to resolve any dispute arising out of the adjustment of loss under a contract of insurance, and the insured person has filed a proof of loss form as required by their contract of insurance, either party may request that the dispute be resolved by arbitration in accordance with the Arbitration Proceedings Regulations made under the Crop and Livestock Insurance Act.

(2) A request for arbitration must be made by giving notice in writing to the other party and the Crop and Livestock Insurance Arbitration Board within 90 days of the end of the insurance year in which the loss occurred.

________________________________________________________________

Form 1 - Contract of Insurance - Dairy

The Crop and Livestock Insurance Act

Contract of Insurance

Contract:____________

Between the Nova Scotia Crop and Livestock Insurance Commission,

(“the Commission”), of the first part

And ____________________________________________, of

________________, in the County of______________, Nova Scotia

(“the Insured Person”), of the second part

Whereas the Crop and Livestock Insurance Act (the “Act”) gives the Commission the power to administer insurance plans established by regulation for designated insurable livestock;

And whereas the Dairy Livestock Insurance Plan made under the Act (the “Plan”) provides insurance against a loss of livestock resulting from 1 or more of the perils designated in subsection 4(1) of the Plan and provides a benefit for loss of income when, as a result of 1 or more of the perils designated in subsection 4(2) of the Plan, the Insured Person’s gross monthly income from the sale of milk falls below 50% of the average gross monthly income calculated in accordance with subsection 16(2) of the Plan;

And whereas the Commission and the Insured Person have entered into this contract of insurance to insure the dairy livestock and income offered by the Insured Person and accepted by the Commission for insurance (the “Insured Animal” and the “Loss of Income”) in each year while this contract is in force, in accordance with the Plan made under the Act;

Now therefore, subject to the Act, the Plan, the regulations under the Act, and the conditions in this contract, if the Insured Person suffers Loss of Income or loss of or damage to an Insured Animal due to 1 or more of the perils designated in the Plan, the Commission, subject to the terms and conditions hereinafter set forth, agrees to indemnify the Insured Person in respect of the loss.

Terms and Conditions

Insured animal

1 In this contract, an insured animal means an animal insured under the Plan

Extent of insurance

2 (1) This contract applies to the dairy cows, heifers, and calves as specified in the certificate of insurance issued by the Commission to the Insured Person in each year.

(2) An Insured Person under the Plan that produces milk under a licence issued by the Dairy Farmers of Nova Scotia is also eligible to be insured against Loss of Income.

(3) This contract applies to livestock diseases and perils designated under the Plan.

Causes of loss not insured against

3 This contract does not insure against, and no indemnity will be paid in respect of, a death of an insured animal resulting from

(a) negligence, misconduct, or poor animal husbandry practices of the insured person or their agents or employees; or

(b) a peril other than a peril designated in the Plan.

Cancelling insurance

4 (1) The Insured Person or the Commission may cancel insurance under this contract by giving written notice to the other party by December 31 prior to the year that the cancellation is to be effective.

(2) The Commission may cancel insurance under this contract without notice if the Insured Person contravenes any of the terms or conditions of the Act, the regulations under the Act or this contract.

Contract terminates on bankruptcy or death

5 (1) This contract terminates on December 31 of any year that the Insured Person makes an authorized assignment under the Bankruptcy Act (Canada).

(2) This contract terminates on December 31 of the year that the Insured Person dies, but the Commission may extend this contract to the Insured Person’s estate at the request of a person who is a personal representative of the Insured Person within the meaning of the Probate Act.

Actions that invalidate claim

6 If an Insured Person does any of the following, a claim by the Insured Person is invalid and their right to recover indemnity is forfeited:

(a) gives false particulars in their Dairy Livestock Insurance Plan - Application & Renewal form or Application Supplement form;

(b) knowingly misrepresents or fails to disclose any fact required in their Dairy Livestock Insurance Plan - Application & Renewal form or Application Supplement form;

(d) commits a fraud;

(e) willfully makes a false statement in respect of any claim under this contract.

Waiver of alteration

7 No term or condition of this contract or the Plan is deemed waived or altered in whole or in part by the Commission unless the waiver or alteration is expressed in writing and signed by the Commission or a representative authorized for that purpose by the Commission.

Interest of insured person deemed to be full value of coverage

8 The interest of the Insured Person is deemed to be the full value of the total coverage provided, regardless of any interest that individuals other than the Insured Person may hold.

Insured person may assign right to be indemnified

9 (1) An indemnity will not be paid to any person other than the Insured Person, unless the Insured Person assigns the indemnity under this Section.

(2) The Insured Person may assign all or part of their right to be indemnified under this contract.

(3) An assignment under subsection (2) is not binding on the Commission and no payment of indemnity will be made to an assignee unless

(a) the assignment is made on a form provided by the Commission; and

(b) the Commission consents to the assignment in writing.

Notice of loss

10 The Insured Person must notify the Commission in accordance with the Plan of the death or disease of an insured animal or the loss of income resulting from 1 or more designated perils.

Notice of claim

11 (1) A claim for indemnity must be made on a form provided by the Commission.

(2) Subject to subsection (3), a claim for indemnity must be made by the Insured Person.

(3) A claim for indemnity may be made

(a) in the case of the absence or inability of the Insured Person, by an agent of the Insured Person; or

(b) in the case of the absence or inability of the Insured Person or on their failure or refusal to make the claim, by a person assigned under Section 9.

Adjustment of loss

12 (1) The indemnity payable for the death of an insured animal or loss of income will be determined in the manner prescribed by the Plan.

(2) The Commission may appraise a claim by any method that it deems appropriate to fairly and accurately appraise the loss.

(3) No indemnity will be paid for the death of an insured animal or loss of income unless the Insured Person establishes the cause of loss as set out in the Plan.

Maximum indemnity

13 (1) The maximum indemnity that the Commission is liable for under a contract of insurance is the insured value of the livestock and the insured value of the income loss less any payments received

(a) under the Health of Animals Act (Canada);

(b) for salvage; or

(2) The Commission is not responsible for transportation costs for salvage, cleanup costs or costs incurred by an Insured Person to support a claim.

(3) Indemnity payable by the Commission under this Plan is limited to the extent of the assets in the Livestock Insurance Fund balance held by the Commission.

Time for payment of indemnity

14 (1) Except as otherwise provided in the Plan, no indemnity under this contract becomes due and payable until the end of the year that the loss or damage was sustained.

(2) Nothing in this Section prevents the Commission from paying indemnity under this contract at an earlier date.

Arbitration

15 If the Commission and the Insured Person cannot resolve a dispute regarding the adjustment of loss under this contract, the matter will be resolved by arbitration in accordance with the Plan.

Subrogation

16 If the Commission has paid a claim under this contract, the Commission is subrogated to the extent of the claim to all rights of recovery of the Insured Person against any person and may bring action for the full amount in the name of the Insured Person to endorse those rights.

Right of entry

17 The Insured Person must permit the Commission or its agents to have right of entry to the premises to view an insured animal and to furnish any information related to this contract and must comply with the requirements of the Commission or a veterinarian employed by the Commission.

Notice

18 (1) Notice under this contract must be given by personal delivery or mail.

(2) For the purposes of subsection (1), the Commission will give notice to the Insured Person using the most recent mailing address for the Insured Person that the Commission has on record.

In witness thereof, the Nova Scotia Crop and Livestock Insurance Commission has caused this contract of insurance to be signed by its Executive Secretary or an authorized member of the Commission and countersigned by a duly authorized representative of the Commission.

Countersigned and dated at on ___________________, 20__ .

____________________________ _________________________________

Duly authorized representative Executive Secretary

The current consolidation of the Dairy Livestock Insurance Plan made under the Crop and Livestock Insurance Act includes all of the following regulations:

The following regulations are not yet in force and are not included in the current consolidation:

*See subsection 3(6) of the Regulations Act for rules about in force dates of regulations.

N.S. Regulation	Title	In force date	Repealed date

114/2002	Dairy Livestock Insurance Plan	Apr 1, 2000	Apr 27, 2021

Note: Only regulations that are specifically repealed and replaced appear in this table. It may not reflect the entire history of regulations on this subject matter.

N.S. Regulation	In force date*	How in force	Royal Gazette Part II Issue
66/2021	Apr 27, 2021	date specified	May 7, 2021

N.S. Regulation	In force date*	How in force	Royal Gazette Part II Issue

ad. = added am. = amended	fc. = fee change ra. = reassigned		rep. = repealed rs. = repealed and substituted
Provision affected		How affected
..........................................................

Dairy Livestock Insurance Plan	N.S. Reg. 66/2021
Crop and Livestock Insurance Act
Note: The information in these tables does not form part of the regulations and is compiled by the Office of the Registrar of Regulations for reference only.

	Note	Effective date