A-30 - Crop Insurance Act

Updated to 22 October 1999

This document has official status.

chapter A-30

Crop Insurance Act

In this Act, the word “Régie” means La Financière agricole du Québec. (2000, c. 53, s. 69; Order in Council 418-2001 dated 11 April 2001, (2001) 133 G.O. 2, 1947.

DIVISION I DEFINITIONS

1. In this Act, unless the context requires a different meaning,

(a)  “producer” means the owner, lessee or occupant of a cultivated farm;

(b)  “mixed farming crop” means forage or cereal plants, except grain-corn, grown on a cultivated farm and intended mainly for feeding the producer’s farm animals;

(c)  “commercial crop” means plants grown on a cultivated farm and intended mainly for sale, including grain-corn and alfalfa grown for commercial purposes;

(d)  “zone” means a territory the geographic boundaries of which, established by the Régie, are based on characteristics of homogeneity as regards the nature of the soil, the topography and climatic conditions;

(e)  “collective appraisal” means quantitative and qualitative samplings taken on various cultivated farms to determine the actual yield of insured crops;

(f)  “individual appraisal” means a verification made on one producer’s farm to determine the actual yield of his insured crop;

(g)  “milk production” means the quantity in kilograms of fat or milk which a producer markets or is authorized to market during a year;

(h)  “Régie” means the Régie established by section 2;

(i)  “regulation” means a regulation made by the Régie and approved by the Government.

1974, c. 31, s. 1; 1975, c. 39, s. 1; 1977, c. 40, s. 1; 1984, c. 47, s. 213; 1991, c. 60, s. 1; 1995, c. 10, s. 1.

DIVISION II RÉGIE DES ASSURANCES AGRICOLES DU QUÉBEC

1979, c. 73, s. 1.

2. A body called “Régie de l’assurance-récolte du Québec” is established.

From 21 January 1981, the body shall be designated under the name of “Régie des assurances agricoles du Québec”.

The object of the Régie is to administer the crop insurance contemplated by this Act and, in accordance with the Act respecting farm income stabilization insurance (chapter A-31), to administer the farm income stabilization insurance schemes established under that Act.

A further object of the Régie is to administer the insurance funds for which it acts as trustee under this Act and the Act respecting farm income stabilization insurance, and to administer, pursuant to any agreement, any other fund whose management may be entrusted by the Government to the Régie as trustee.

1974, c. 31, s. 2; 1979, c. 73, s. 2; 1998, c. 53, s. 1.

3. The Régie is a mandatary of the State.

It is a legal person.

1974, c. 31, s. 3; 1999, c. 40, s. 31.

4. The Régie has its head office at Québec or in an adjacent locality. It may hold its sittings at any place in the Province.

1974, c. 31, s. 4; 1999, c. 40, s. 31.

5. The Régie is composed of not more than seven members, including a president and two vice-presidents, appointed by the Government.

The president and the two vice-presidents are appointed for a term of not over five years. The other members are appointed for a term of not over three years.

Two of the members of the Régie shall be chosen from among the farmers.

The Government shall fix the salary and if necessary, the additional salary and other conditions of employment of the members of the Régie.

The president is the general manager of the Régie and the vice-presidents are assistant general managers thereof.

A member shall remain in office at the expiry of his term until he is reappointed or replaced.

1979, c. 73, s. 4.

6. A majority of the members of the Régie, including the president are a quorum. In the case of a tie-vote, the president or, in the case contemplated in the second paragraph of this section, the vice-president, has a casting vote.

If the post of president is vacant or if the president is absent or unable to act, he shall be replaced, while he remains absent or unable to act or until a new president is appointed, by the vice-president designated for that purpose by the Government and, if that vice-president is absent or unable to act, by the other vice-president.

When another member is absent or unable to act, the Government may appoint a person to replace him temporarily, on the conditions and for the remuneration it determines.

1974, c. 31, s. 6; 1979, c. 73, s. 5; 1999, c. 40, s. 31.

7. The secretary and the staff of the Régie shall be appointed and remunerated in accordance with the Public Service Act (chapter F-3.1.1).

1974, c. 31, s. 7; 1978, c. 15, s. 140; 1983, c. 55, s. 161.

8. The minutes of the sittings, approved by the Régie and certified by the president or the secretary, are authentic. The same applies to documents and copies emanating from the Régie or forming part of its records.

1974, c. 31, s. 8.

9. The president and the vice-presidents of the Régie hold office on a full-time basis.

1974, c. 31, s. 9; 1979, c. 73, s. 6.

10. The president is responsible for the administration of the Régie within the scope of its regulations.

1974, c. 31, s. 10.

11. No member shall have any interest in a cultivated farm, in the business of farm products or in a related enterprise that causes his personal interests to conflict with those of the Régie.

If, upon his appointment, a member has such an interest or if he acquires one subsequently by succession, gift or otherwise, he must dispose of it within a reasonable time.

This section does not apply to the member chosen among the representatives of farmers’ associations.

1974, c. 31, s. 11; 1999, c. 40, s. 31.

12. The Régie may, of its own initiative or on the application of the producer, review or cancel any decision it has rendered in respect of which no proceeding has been brought before the Administrative Tribunal of Québec

(a)  where a new fact is discovered which, if it had been known in due time, might have justified a different decision;

(b)  where a substantial or procedural defect is likely to invalidate the decision.

The application for review or for cancellation must be presented in writing within 30 days of the date of the decision concerned.

The Régie shall allow the producer to present observations.

Decisions of the Régie shall be rendered in writing and shall state the reasons on which they are based; they shall form part of the records of the Régie.

1974, c. 31, s. 12; 1986, c. 95, s. 22; 1997, c. 43, s. 66.

13. The members and the officers and employees of the Régie cannot be sued by reason of official acts done in good faith in the exercise of their functions.

None of the extraordinary recourses provided in articles 834 to 850 of the Code of Civil Procedure (chapter C-25) shall be exercised and no injunction shall be granted against the Régie or against the members acting in their official capacity.

Article 33 of the Code of Civil Procedure does not apply to the Régie.

1974, c. 31, s. 13.

14. A judge of the Court of Appeal, upon motion, may annul summarily any writ, order or injunction issued or granted contrary to section 13.

1974, c. 31, s. 14; 1974, c. 11, s. 2; 1979, c. 37, s. 43.

15. In exercising its powers, the Régie itself, or any member or any person appointed by it, may inquire into any matter within its competence.

For such purpose, the Régie has the powers and immunities of commissioners appointed under the Act respecting public inquiry commissions (chapter C-37), except the power to order imprisonment.

1974, c. 31, s. 15; 1992, c. 61, s. 69.

16. It is forbidden to hinder an investigator or inspector of the Régie in the performance of his duties, to mislead or attempt to mislead him by concealment or fraudulent misrepresentation or to refuse to obey any order he may give under this Act or the regulations.

Such investigator or inspector shall, if so required, produce a certificate attesting his authority, signed by the president of the Régie or a person authorized for that purpose by him.

Any person contravening the provisions of this section is liable to a fine of not more than $500.

1974, c. 31, s. 16; 1990, c. 4, s. 83.

17. The fiscal year of the Régie terminates on 31 March.

1974, c. 31, s. 17.

18. The books and accounts of the Régie shall be audited each year by the Auditor General of Québec.

The Régie shall at least every five years prepare an acturial analysis of its operations and gather all information pertinent to fixing the rates of assessment.

1974, c. 31, s. 18.

19. The Régie shall, not later than 30 September each year, submit to the Minister of Agriculture, Fisheries and Food a report of its operations for the previous year. Such report shall contain all the information which the Government may prescribe.

Such report shall be immediately laid before the National Assembly if in session or, if not, within 15 days after the opening of the next session.

1974, c. 31, s. 19; 1979, c. 77, s. 21; 1995, c. 10, s. 2.

DIVISION III ADVISORY COMMITTEE

20. The Régie shall be assisted by an advisory committee composed of the following members appointed by the Government:

(a)  two members designated by the Union des producteurs agricoles;

(b)  two members designated by the Régie from among its members;

(c)  two members representing the Government; and

(d)  one member from the financial sector.

The person at the Régie in charge of the administration of the insurance funds for which the Régie acts as trustee under this Act and the Act respecting farm income stabilization insurance (chapter A-31) is ex officio a member of the advisory committee.

The members of the advisory committee are not remunerated, except in the cases, on the conditions and to the extent which may be determined by the Government. However, they are entitled to the reimbursement of expenses incurred in the exercise of their functions, on the conditions and to the extent determined by the Government.

1974, c. 31, s. 20; 1978, c. 15, s. 140; 1983, c. 55, s. 161; 1998, c. 53, s. 2.

21. The functions of such committee shall be:

(a)  to give its advice and make recommendations to the Régie on any matter which the Régie sees fit to submit to it;

(b)  to advise the Régie, at its request, on tariffing, actuarial soundness, investments, loans and the transactions relating to the instruments and contracts of a financial nature used in the management of the funds it administers;

(c)  to perform any other advisory function that the Government or the Régie may assign to it.

1974, c. 31, s. 21; 1979, c. 73, s. 7; 1998, c. 53, s. 3.

22. The committee, at its discretion, may resolve itself into sections or subcommittees for the study of particular problems.

1974, c. 31, s. 22.

DIVISION IV MIXED FARMING CROP

23. The Régie may, by regulation, where it considers itself to be in possession of the necessary data, enable the producers of mixed farming crops in one or more zones or any part thereof that it determines, to insure their crops under a collective insurance plan provided for in this Act against a loss in yield due to the occurrence, while the insurance is in force, of an event insured against determined under section 24.

Mixed farming crops are also insurable under an individual insurance plan provided for in this Act.

1974, c. 31, s. 23; 1977, c. 40, s. 2; 1995, c. 10, s. 3.

24. The object of the insurance is to indemnify a producer for any loss in yield sustained by his crop as a result of the occurrence of any uncontrollable event not attributable to human intervention, namely:

(1)  snow;

(2)  hail;

(3)  hurricane;

(4)  excessive rain;

(5)  excessive wind;

(6)  excessive humidity;

(7)  excessive heat;

(8)  drought;

(9)  frost;

(10)  wild animals, including birds;

(11)  insects and plant diseases which appear in the form of an infestation or an epidemic or against which there is no adequate means of protection;

(12)  flood caused by a force of nature and being an exceptional event;

(13)  the formation of ice in the soil and frost in the preceding months of November through April, subject to section 48.

However, the Régie may, by regulation and in respect of the crops it determines, offer insurance to indemnify producers for losses sustained as a result of the occurrence of one or some of the events mentioned in the first paragraph.

The Régie may also, by regulation, add other uncontrollable events that are not attributable to human intervention for the crops it determines.

1974, c. 31, s. 24; 1975, c. 39, s. 2; 1977, c. 40, s. 3; 1984, c. 20, s. 1; 1991, c. 60, s. 2; 1998, c. 53, s. 4.

25. The insurance shall be in force, each year, from the beginning of growth or seeding, to the extent that it is possible, until the end of the harvest. The final dates for seeding or the harvest in a region shall be established by regulation, taking into account established and recognized local usage.

However, the Régie may change the dates fixed under the first paragraph if of opinion that the seeding or the harvest could not be done in time on account of the occurrence of an event insured against determined under section 24.

1974, c. 31, s. 25; 1977, c. 40, s. 4; 1991, c. 60, s. 3.

26. The Régie shall determine, at least every three years, a basic rate of assessment based on an actuarial valuation and any other data it considers relevant.

The basic rate shall apply to all of Québec, to a group of zones or to one zone only. It shall be adjusted, for each producer, in proportion to the loss index and the number of years during which the producer was insured.

The Régie may fix a discount rate for the benefit of every producer paying his assessment in advance; the discount rate may vary according to the date of payment in advance of the assessment.

1974, c. 31, s. 26; 1977, c. 40, s. 5; 1991, c. 60, s. 4.

27. To determine the amount of assessment payable by a producer, the Régie shall fix, at least every three years, the unit prices of the crops insured; to fix such prices, for each crop, it shall take account of its average cost of production or any other datum it considers pertinent.

1974, c. 31, s. 27; 1991, c. 60, s. 5.

28. (Repealed).

1974, c. 31, s. 28; 1977, c. 40, s. 6; 1991, c. 60, s. 6; 1995, c. 10, s. 4.

29. Where a dispute arises concerning eligibility for insurance with respect to the same cultivated farm, the producers concerned may request the intervention of the Régie so that it may endeavour to settle the matter.

1974, c. 31, s. 29; 1997, c. 43, s. 67.

§ 1 . — Collective plan

30. Subject to a consultation by the Régie with the associations or groups of producers in the zone, the establishment of a group insurance plan may be ordered by the Government in any zone which the Régie may determine by regulation if it is proved to the satisfaction of the Government:

(a)  that a sufficient number of producers of the zone agree thereto or

(b)  that the producers of the zone whose crops represent a sufficient proportion of the insurable value of all the crops in the zone, agree thereto.

Subject to the consultation provided for in the first paragraph, such a plan, once established, shall not be abolished except where it is proved to the satisfaction of the Government:

(a)  that a sufficient number of the insured producers of the zone are in favour of its abolition or

(b)  that the insured producers of the zone whose crops represent a sufficient proportion of the insurable value of all the crops in the zone, are in favour of its abolition.

1974, c. 31, s. 30; 1975, c. 39, s. 3; 1977, c. 40, s. 7.

31. A producer who wishes to be insured under the collective plan must register with the Régie before the final date fixed by regulation. The registration must be made on the form supplied by the Régie.

1974, c. 31, s. 31; 1977, c. 40, s. 8; 1995, c. 10, s. 5.

32. The Régie shall confirm the eligibility of the producer by issuing an insurance certificate within 60 days of the date of registration. The certificate must indicate, in particular, the basic rate of assessment and, where applicable, the discount rate and the unit price established for the insurance year.

1974, c. 31, s. 32; 1991, c. 60, s. 7; 1995, c. 10, s. 6.

32.1. Every producer who alters the agricultural program represented to the Régie in his application for insurance shall immediately notify the Régie of that fact. The Régie shall then inform him as soon as possible of the conditions on which a new certificate may be issued to him.

However, the Régie shall not accept any application after the final date fixed by regulation.

A producer who fails to comply with the obligation imposed by the first paragraph is entitled to no reimbursement of assessment and the insurance is valid only for that part of the agricultural program represented to the Régie which is carried out.

1991, c. 60, s. 8.

33. If the Régie is of the opinion that, having regard to the conditions prescribed in the Act and the regulations, a producer is not eligible under the collective plan, it shall inform him of that fact within the time prescribed in section 32 and give him the grounds of its refusal.

1974, c. 31, s. 33; 1999, c. 40, s. 31.

34. The assessment of a producer is payable to the Régie at the time and on the terms and conditions prescribed by regulation of the Régie.

1974, c. 31, s. 34; 1977, c. 40, s. 9; 1995, c. 10, s. 7.

35. (Repealed).

1974, c. 31, s. 35; 1977, c. 5, s. 14; 1977, c. 40, s. 10; 1990, c. 13, s. 217; 1995, c. 10, s. 8.

36. The Régie may make with an association or group of producers eligible to insurance under the collective plan an agreement relating to any measure proper to the carrying out of the insurance.

1974, c. 31, s. 36.

37. (Repealed).

1974, c. 31, s. 37; 1977, c. 40, s. 11; 1995, c. 10, s. 9.

38. Every producer whose assessment has not been paid must, at any time, make the payment on demand of the Régie, saving his recourse, where such is the case.

1974, c. 31, s. 38.

39. The insurance shall guarantee, for each crop, up to 90% of the average area unit yield for that crop, as the Régie may determine by regulation.

The average area unit yield shall be established by zones, on the basis of the usual long-term yield in each zone, taking into account the available statistics or any other datum the Régie considers pertinent.

1974, c. 31, s. 39; 1991, c. 60, s. 9; 1998, c. 53, s. 5.

40. For the purposes of computing the amount of the insurable value of the producer, the Régie, by regulation, shall determine the yield allowed to him for each crop.

For such purpose, the Régie, taking into account the equivalences and the terms and conditions prescribed, shall base itself on the milk production for dairy cattle and on the inventory of animals for other herbivorous animals.

1974, c. 31, s. 40; 1998, c. 53, s. 6.

41. The amount of the insurable value equals the product obtained by multiplying the yield allowed under section 40 by the corresponding unit price.

1974, c. 31, s. 41.

42. The alienation to another producer, by sale, succession or otherwise, of the whole or part of one’s dairy production shall not invalidate the insurance; in such case the acquirer, on filing a notice to that effect before 1 November of the year of insurance and a satisfactory proof of the transaction, shall be subrogated in the rights and obligations of his predecessor respecting the insurance.

The same rule applies upon alienation to another producer of the whole or part of a farm used for the raising of beef-cattle, horses, sheep or other herbivorous animals provided the live-stock is included in whole or in part in the transaction.

1974, c. 31, s. 42.

43. In case of damage caused by the occurrence of an event insured against determined under section 24, the insured is required to file a notice of damage with the Régie.

1974, c. 31, s. 43; 1977, c. 40, s. 12; 1984, c. 20, s. 2; 1991, c. 60, s. 10.

44. To determine, in a zone, whether a crop has sustained a loss in yield that may be indemnified, the Régie shall each year make a collective appraisal in that zone or in another zone or part of a zone presenting characteristics similar to those of the zone in which the actual yield of the crop has been determined. However, the Régie may revise upward or downward the actual yield of the zone or part of a zone to reflect the variation between the quality observed and the basic quality determined by regulation for each crop established in the regulation.

If the appraisal shows the actual yield of the crop in the zone is less than the average yield guaranteed under section 39, each insured person in the zone shall be entitled to the payment of an indemnity.

Such indemnity shall be equal to the product obtained by multiplying the insurable value entered on the insurance certificate of the insured by the percentage of net loss established by the collective appraisal.

1974, c. 31, s. 44; 1977, c. 40, s. 13; 1984, c. 20, s. 3; 1991, c. 60, s. 11; 1995, c. 10, s. 10; 1998, c. 53, s. 7.

44.1. Where a loss in yield results from the occurrence of an event insured against determined under section 24 and is confined to part of a zone, the Régie shall make an individual appraisal at the place of the insured who has filed the notice prescribed in section 43.

Every insured whose crop has sustained a loss in yield is entitled to an indemnity equal to the product of the insurable value entered on his insurance certificate by the percentage of net loss established by individual appraisal.

1984, c. 20, s. 4; 1991, c. 60, s. 12.

44.2. (Repealed).

1984, c. 20, s. 4; 1991, c. 60, s. 13.

44.3. (Repealed).

1984, c. 20, s. 4; 1991, c. 60, s. 13.

45. A producer insured only for the feed required as winter fodder for his herd is entitled, for his pastures, to an indemnity equal to two-fifths of the indemnity granted for loss in yield of forage plants when such loss is due exclusively to drought.

1974, c. 31, s. 45; 1979, c. 73, s. 8.

§ 2 . — Individual plan

46. Every producer specializing in the dairy industry, every breeder of beef-cattle, horses, sheep or other herbivorous animals, and every breeder of poultry, hogs or other granivorous animals may insure his crops on the individual insurance plan, provided he has, to the satisfaction of the Régie, the plan of his farm, precise data on the average yield of his crops and any other data prescribed by regulation.

1974, c. 31, s. 46; 1977, c. 40, s. 14.

47. The insurance shall guarantee, for each insured crop, up to 90% of the average yield of such crops, as determined by regulation by the Régie.

The Régie may also by regulation determine options in the percentages of guaranteed protection.

The average yield of each crop to be insured shall be established by the Régie on the basis of the available statistics, the inspection of the premises, the analysis of the soil, the examination of the producer’s books and documents, or on the basis of any other datum that the Régie considers pertinent.

1974, c. 31, s. 47; 1991, c. 60, s. 14; 1998, c. 53, s. 8.

48. Protection against the formation of ice in the soil and frost in the preceding months of November through April is invalid unless the forage plants were covered by insurance under the individual plan during the preceding year or unless the producer insures his forage plants and pays the amount of the assessment payable before 1 November of the year preceding the year in which the insurance will be in force.

1974, c. 31, s. 48 (part); 1977, c. 40, s. 15.

49. A producer who wishes to insure his crops under an individual plan must apply therefor to the Régie before the final date fixed by regulation. The application must be made on the form supplied by the Régie.

1974, c. 31, s. 49; 1995, c. 10, s. 11.

49.1. The assessment of a producer is payable to the Régie at the time and on the terms and conditions prescribed by regulation of the Régie.

1995, c. 10, s. 11.

50. The application for insurance shall in particular state, by crop, the areas to be insured, their average yield and the number and species of the producer’s farm animals.

1974, c. 31, s. 50; 1998, c. 53, s. 9.

51. The producer is free to insure any crop but the whole of the area cultivated for the crop that he has elected to insure must be covered by the insurance.

1974, c. 31, s. 51; 1998, c. 53, s. 10.

52. The Régie shall confirm the eligibility of the producer by issuing an insurance certificate within 60 days of the final date fixed by regulation for submitting an application. The certificate must indicate, in particular, the basic rate of assessment and, where applicable, the discount rate and the unit price established for the insurance year.

1974, c. 31, s. 52; 1995, c. 10, s. 12.

52.1. However, where the application submitted by a producer does not meet the requirements of sections 49 and 50, the Régie shall so notify the producer before the expiry of the period of 60 days, and inform him of the conditions on which a certificate will be issued to him. The producer may submit a corrected application within 15 days of receipt of the notice.

1995, c. 10, s. 12.

53. Except for an unseeded area covered by special protection under section 55, every producer who alters the agricultural program that he has represented to the Régie in his application for insurance or in a corrected application shall immediately notify the Régie of that fact before the final date fixed by regulation; the Régie shall then inform him as soon as possible of the conditions on which a new certificate may be issued to him.

If a producer does not comply with the preceding paragraph, he shall not be entitled to any repayment of assessment and the insurance shall be valid only for that part of the agricultural program which he has represented to the Régie and which he carries out.

1974, c. 31, s. 53; 1977, c. 40, s. 16.

54. The alienation to another producer, by sale, succession or otherwise, of a cultivated farm the crop of which is insured shall not invalidate the insurance; in such case the acquirer shall, unless otherwise provided, be subrogated in the rights and obligations of his predecessor respecting the insurance, provided he immediately informs the Régie of that fact and submits sufficient proof of the transaction.

1974, c. 31, s. 54.

55. The producer may benefit, as the Régie may determine by regulation, by special protection when, following the occurrence of an event insured against determined under section 24, he finds it impossible to seed the area or part of the area prepared for it and insured. This special protection shall not exceed in value 90% of the average cost of the expenditures made to prepare the area for seeding, as determined by regulation by the Régie.

The application of this special protection shall entail cancellation of the insurance against loss of yield on the unseeded area, without any repayment of assessment.

1974, c. 31, s. 55; 1991, c. 60, s. 15.

56. As soon as the occurrence of an event insured against determined under section 24 produces effects that are such as to reduce the yield of an insured crop, the insured must with the least possible delay notify the Régie, on pain of forfeiture of his right to any indemnity.

The insured must also with the least possible delay carry out the emergency measures necessary to avoid or reduce any loss in yield. The carrying out of such measures shall entitle him to compensation equal to the amount of the expenses incurred up to the amount determined by regulation. Such compensation shall not exceed the difference between the amount of the indemnity that would be payable in the case of total loss and the amount of the indemnity actually paid during the year.

1974, c. 31, s. 56; 1991, c. 60, s. 16.

57. For the purpose of fixing the amount of the indemnity due to an insured, the Régie shall have the loss assessed by means of an individual appraisal.

1974, c. 31, s. 57.

58. The indemnity to which the insured is entitled shall be established according to the difference between the guaranteed yield under section 47 and the actual yield, valued on the basis of the unit prices fixed by the Régie under section 27 and mentioned in the insurance certificate.

Excluding the indemnity contemplated in section 45, the aggregate of the indemnities payable under both the collective plan and the individual plan, for the same crop during the same insurance year, shall not exceed the maximum indemnity an insured may collect under one plan or the other.

1974, c. 31, s. 58; 1998, c. 53, s. 11.

DIVISION V COMMERCIAL CROPS

59. The Régie may, by regulation, whenever it considers that it has the necessary data, allow the producers of one or more commercial crops, in one or more zones or parts of one or more zones that it determines, to insure, under an individual plan or a collective plan, against the loss in yield of their commercial crops or against both such loss in yield and a reduction in quality due to the occurrence, while the insurance is in force, of an event insured against determined under section 24. The Régie may also, by regulation and subject to the provisions which follow, fix the conditions of participation of the producers who wish to insure.

1974, c. 31, s. 59; 1979, c. 73, s. 9; 1991, c. 60, s. 17; 1998, c. 53, s. 12.

60. Subject to this division, sections 24 to 26, 28 and 29 apply, with the necessary modifications, to commercial crops insured under an individual plan or a collective plan.

The third paragraph of section 47, sections 48 to 57 and the second paragraph of section 58 apply, with the necessary modifications, to commercial crops insured under an individual plan.

Sections 31 to 33, 37 and 38, the second paragraph of section 39, the first paragraph of section 40, and sections 41, 43, 44 and 44.1 apply, with the necessary modifications, to commercial crops insured under a collective plan.

1974, c. 31, s. 60; 1975, c. 39, s. 4; 1977, c. 40, s. 17; 1979, c. 73, s. 10; 1984, c. 20, s. 5; 1991, c. 60, s. 18.

61. The insurance, while in force, shall guarantee up to 90% of the average yield of the crop insured, as determined by regulation of the Régie.

The Régie may also by regulation determine options in the percentages of guaranteed coverage.

1974, c. 31, s. 61; 1991, c. 60, s. 19.

62. To determine the amount of assessment payable by a producer, the Régie shall fix, at least every three years, one or more unit prices of the products insured; such prices shall be determined on the basis of such data as the Régie considers pertinent.

1974, c. 31, s. 62; 1991, c. 60, s. 20.

63. In case of loss, the indemnity to which the insured is entitled shall be determined by the Régie according to the difference between the insured yield and the actual yield, valued on the basis of the unit prices fixed by the Régie under section 62 and shown on the insurance certificate.

Nevertheless, the Régie may, by regulation, determine different terms and conditions of computing the indemnity, in particular when stage adjustments are applied or when the reduction in quality is covered by the insurance.

1974, c. 31, s. 63.

64. The Régie may, subject to this division, make with an association or group of producers or with a legal person, an agreement relating to collective participation in an insurance program for commercial crops and any other measure proper to the carrying out of such program.

1974, c. 31, s. 64; 1999, c. 40, s. 31.

DIVISION V.1 HONEY

1984, c. 20, s. 6.

64.1. The Régie may, by regulation, whenever it considers that it has the necessary data, allow the honey producers in one or more zones or parts of one or more zones that it determines, to insure, under a collective plan, against the loss in yield of their honey production due to the occurrence, while the insurance is in force, of an event insured against determined under section 24 which affects honey bearing plants or bees. The Régie may also, by regulation and subject to the provisions which follow, fix the conditions of participation of the producers who wish to insure.

1984, c. 20, s. 6; 1991, c. 60, s. 21.

64.2. (Repealed).

1984, c. 20, s. 6; 1991, c. 60, s. 22.

64.3. The Régie, by regulation, shall determine the annual period during which the insurance is in force in a zone or part of a zone.

1984, c. 20, s. 6.

64.4. (Repealed).

1984, c. 20, s. 6; 1991, c. 60, s. 23.

64.5. (Repealed).

1984, c. 20, s. 6; 1991, c. 60, s. 24; 1995, c. 10, s. 13.

64.6. (Repealed).

1984, c. 20, s. 6; 1991, c. 60, s. 25; 1995, c. 10, s. 13.

64.7. A honey producer who wishes to be insured must register with the Régie before the final date fixed by regulation. The registration must be made on the form supplied by the Régie.

1984, c. 20, s. 6; 1995, c. 10, s. 14.

64.7.1. The assessment of a producer is payable to the Régie at the time and on the terms and conditions prescribed by regulation of the Régie.

1995, c. 10, s. 14.

64.8. Subject to this division, sections 24, 26, 27, 32, 32.1, 33, 38 and 44.1 apply, with the necessary modifications, to a collective honey insurance plan established under section 64.1.

1984, c. 20, s. 6; 1991, c. 60, s. 26; 1995, c. 10, s. 15.

64.9. The insurance, while it is in force, shall guarantee up to 90% of the average yield of a hive, as the Régie may determine by regulation.

The Régie, by regulation, may determine options in the percentages of guaranteed protection.

1984, c. 20, s. 6; 1991, c. 60, s. 27.

64.10. The average yield of a hive shall be established by zone or part of a zone, as the case may be, on the basis of the usual long-term yield in the zone or part of the zone, taking into account the available statistics or any other datum the Régie considers pertinent.

1984, c. 20, s. 6.

64.11. The amount of the insurable value of a honey producer for each production unit equals the product obtained by multiplying the average yield of a hive in the zone or part of a zone where the unit is situated by the unit price fixed by the Régie.

1984, c. 20, s. 6.

64.12. The alienation to another honey producer, by sale, succession or otherwise, of the whole or part of one’s hives the honey production of which is insured does not invalidate the insurance; in such case, unless otherwise stipulated, the acquirer, on satisfactory proof of the transaction, shall be subrogated to the rights and obligations of his predecessor respecting the insurance.

1984, c. 20, s. 6.

64.13. In case of damage resulting from the occurrence of an event insured against determined under section 24, the insured is required to file a notice of damage with the Régie.

1984, c. 20, s. 6; 1991, c. 60, s. 28.

64.14. For the purpose of determining whether, in a zone, the honey production has sustained a loss in yield that qualifies for an indemnity, the Régie shall, each year, make a collective appraisal in that zone or in another zone or part of a zone presenting characteristics similar to those of the zone where the actual yield of the honey production has been determined.

If the appraisal shows that the actual yield of the honey production, in the zone, is less than the average yield guaranteed under section 64.9, each insured person in the zone shall be entitled to the payment of an indemnity.

1984, c. 20, s. 6; 1991, c. 60, s. 29.

64.15. The indemnity provided for in section 64.14 shall be equal to the product obtained by multiplying the insurable value entered on the insurance certificate of the insured by the percentage of net loss established by the collective appraisal.

1984, c. 20, s. 6.

64.16. Where a loss in yield confined to part of a zone results from the occurrence of an event insured against determined under section 24 and the hives affected by the loss are located in that part of that zone, the Régie shall make an individual appraisal at the place of the insured who has filed a notice of loss under section 64.13.

Every insured whose honey production has sustained a loss in yield is entitled to an indemnity equal to the product obtained by multiplying the insurable value entered on his insurance certificate by the percentage of net loss established by individual appraisal.

1984, c. 20, s. 6; 1991, c. 60, s. 31.

64.17. The Régie may make with an association or group of honey producers or with any legal person interested in the production or marketing of honey an agreement relating to any measure proper to the carrying out of the insurance.

1984, c. 20, s. 6; 1999, c. 40, s. 31.

64.18. A producer’s membership in a collective honey insurance plan is renewed pleno jure at expiry, from year to year, unless, within 30 days after receiving notice of the renewal from the Régie, the insured person informs the Régie that he refuses to renew his membership.

1984, c. 20, s. 6.

64.19. (Repealed).

1984, c. 20, s. 6; 1991, c. 60, s. 32.

64.20. An insured person’s membership renewal ceases to have effect on his neglect or refusal to pay the assessment due or the balance thereof at the time fixed pursuant to section 64.7.1.

1984, c. 20, s. 6; 1995, c. 10, s. 16; 1999, c. 40, s. 31.

64.21. Where an insured person refuses to renew his membership or its renewal ceases to have effect by the operation of section 64.20, the Régie shall refund to the producer the amount withheld from the indemnity.

1984, c. 20, s. 6; 1999, c. 40, s. 31.

DIVISION VI PROCEEDING BEFORE THE ADMINISTRATIVE TRIBUNAL OF QUÉBEC

1997, c. 43, s. 68.

65. Every person who believes that he has been wronged by a decision of the Régie may, within 30 days of notification of the decision, contest the decision before the Administrative Tribunal of Québec.

1974, c. 31, s. 65; 1988, c. 21, s. 66; 1991, c. 60, s. 33; 1997, c. 43, s. 69.

66. (Repealed).

1974, c. 31, s. 66; 1988, c. 21, s. 66; 1991, c. 60, s. 33; 1997, c. 43, s. 70.

67. (Repealed).

1974, c. 31, s. 67; 1988, c. 21, s. 66; 1991, c. 60, s. 33; 1997, c. 43, s. 70.

67.1. (Repealed).

1991, c. 60, s. 33; 1997, c. 43, s. 70.

67.2. (Repealed).

1991, c. 60, s. 33; 1997, c. 43, s. 70.

67.3. (Repealed).

1991, c. 60, s. 33; 1997, c. 43, s. 70.

67.4. (Repealed).

1991, c. 60, s. 33; 1997, c. 43, s. 70.

DIVISION VII CROP INSURANCE FUND

1998, c. 53, s. 13.

68. The Government shall pay to the Régie, before 30 September each year, a contribution equal to the amount of the assessments collected by it for such year.

1974, c. 31, s. 68; 1977, c. 5, s. 14.

69. The aggregate of the assessments collected by the Régie and the contributions paid by the Government under section 68 must suffice for the long-term payment to all insured persons of the indemnities to which they are entitled.

1974, c. 31, s. 69; 1977, c. 5, s. 14.

70. The assessments of insured persons and the contributions of the Government shall constitute a crop insurance fund called “Fonds d’assurance-récolte”.

The fund shall constitute a trust patrimony appropriated mainly to the payment of the indemnities payable under an insurance system created pursuant to this Act. The fund shall be administered by the Régie for the benefit of insured persons and the Régie shall act as trustee of the fund.

In addition to the assessments of insured persons and the contributions of the Government, the fund shall be composed of

(a)  the sums paid by the Minister of Finance as advances taken out of the Consolidated Revenue Fund pursuant to section 71;

(b)  the amount of a loan contracted by the Régie under sections 71.1 and 71.3;

(c)  the revenues derived from the investment of the sums making up the fund; and

(d)  any sum that may be paid by the Minister of Agriculture, Fisheries and Food under an agreement entered into pursuant to section 73.

1974, c. 31, s. 70; 1977, c. 5, s. 14; 1998, c. 53, s. 14.

70.1. The assessments of insured persons and the contributions of the Government shall be credited to separate accounts for each crop. The assessments and contributions may also be credited to separate accounts for each insured person.

1998, c. 53, s. 15.

70.2. A surplus or deficit entered in an account must be considered in determining the assessment relating to that account.

1998, c. 53, s. 15.

70.3. Where a protection program for an insured crop is terminated and the parties to an agreement entered into pursuant to section 73 have agreed on the setting up of a replacement program, any surplus or deficit in the insured crop account shall be entered in the replacement program account.

If no replacement program is set up, any surplus or deficit in the insured crop account shall be dealt with in accordance with an agreement entered into by the parties pursuant to section 73 in the year following the expiry date of the program. In the absence of an agreement, the account’s liabilities shall encumber the fund and any surplus or deficit shall be apportioned among insured persons and the Government in proportion to their participation in the account.

1998, c. 53, s. 15.

70.4. The Régie may use a surplus in an account to advance a sum on a short-term basis to another account in a fund it administers.

1998, c. 53, s. 15.

70.5. The sums required for the execution of a judgment which has become res judicata rendered against the Régie as fund manager shall be taken out of the fund.

1998, c. 53, s. 15.

70.6. The books and accounts of the fund shall be audited every year by the Auditor General.

1998, c. 53, s. 15.

71. When the resources are insufficient to pay the indemnities, the Minister of Finance may make advances to the Régie, out of the Consolidated Revenue Fund, to complete such payments.

Every advance shall be repayable on the conditions fixed by the Government; the repayments shall be paid into the Consolidated Revenue Fund.

1974, c. 31, s. 71; 1998, c. 53, s. 16.

71.1. The Régie may complete the payment of indemnities by means of a loan. The Régie may, to guarantee the loan, encumber all or part of the assessments collected by it and the contributions paid to it by the Government under this Act.

The Government shall determine the amount, the rate of interest, the conditions and the modalities of the loan and the conditions under which the assessments and contributions may be encumbered.

1998, c. 53, s. 17.

71.2. The Régie may contract a loan in order to carry out a transaction to which Division VIII.1 of the Financial Administration Act (chapter A-6) applies in respect of instruments and contracts of a financial nature. The Government shall determine the amount, the rate of interest, the conditions and the modalities of the loan.

The amount of a loan may be applied, among other things, to the repayment of brokerage fees relating to instruments and contracts of a financial nature, and to the repayment of any interest and costs relating to the loan.

The sums required to repay the loan are chargeable to the fund in the proportion determined by the Government in accordance with an agreement entered into pursuant to section 73. In the absence of an agreement, the sums required to repay the loan are chargeable to the fund, but only in the proportion for which the Government is liable.

1998, c. 53, s. 17.

71.3. The revenues generated by the instruments and contracts of a financial nature to which Division VIII.1 of the Financial Administration Act (chapter A-6) applies are applied first to the repayment of the interest, costs and capital of loans contracted under section 71.2, and then to the repayment of the brokerage fees relating to such instruments and contracts.

The balance of the revenues remaining at the end of each fiscal year is paid into the fund as a contribution of the Government.

If an agreement under section 73 provides for a financial interest held by farm producers in instruments and contracts of a financial nature, the balance of the revenues is applied to the amount of the assessments payable by the producers for the following fiscal year, proportionally to their financial interest.

1998, c. 53, s. 17.

71.4. The Government may guarantee a loan contracted by the Régie under sections 71.1 and 71.2.

The sums that the Government may be called upon to pay under the guarantee are taken out of the Consolidated Revenue Fund.

1998, c. 53, s. 17.

72. The assessments of insured persons and the contributions of the Government shall be deposited, as and when collected, in one or more banks within the meaning of the Bank Act (Revised Statutes of Canada, 1985, chapter B-1) or of the Québec Savings Banks Act (Revised Statutes of Canada, 1970, chapter B-4) or in a savings and credit union governed by the Savings and Credit Unions Act (chapter C-4.1).

Sums which the Régie does not expect to be immediately needed for payment of compensations and indemnities shall be deposited immediately with the Caisse de dépôt et placement du Québec.

1974, c. 31, s. 72; 1977, c. 5, s. 14; 1988, c. 64, s. 587.

DIVISION VIII AGREEMENTS AND REGULATIONS

73. The Government may authorize the Minister of Agriculture, Fisheries and Food to make agreements with the Government of Canada or with any person, association or partnership to further the carrying out of this Act, particularly respecting the repayment of the costs of administration and of the contributions paid by the Gouvernement du Québec and the reinsurance of the risks insured by the Régie.

The Government shall have the powers necessary for carrying out such agreements.

1974, c. 31, s. 73; 1977, c. 5, s. 14; 1979, c. 77, s. 21; 1999, c. 40, s. 31.

74. In addition to the other regulatory powers assigned to it by this Act, the Régie may, by regulation:

(a)  (paragraph repealed);

(b)  (paragraph repealed);

(c)  determine what persons may apply for insurance on behalf of a producer;

(d)  classify the insurable crops and describe in Québec zones which according to the nature of the soil, the topography and climatic conditions, are homogeneous;

(e)  determine the conditions of eligibility of a producer to an individual plan or to a collective plan;

(e.1)  (paragraph repealed);

(e.2)  (paragraph repealed);

(f)  determine what persons are authorized to sell insurance, the conditions of their hiring and remuneration, and the methods and procedures to be followed in selling insurance;

(g)  determine what persons are authorized to make collective or individual appraisals, the conditions of their hiring and remuneration, and the methods and procedures to be followed in making an appraisal;

(h)  prescribe the conditions of and the procedure governing the settlement of claims, and the payment of indemnities and compensation provided for in this Act, in particular, in the case of an abandoned crop;

(i)  determine the equivalences and the terms and conditions for computing the value insurable under the collective plan;

(j)  (paragraph repealed);

(k)  (paragraph repealed);

(l)  establish rules of internal management and rules of procedure for the conduct of its meetings and for the review or cancellation of its decisions;

(m)  prescribe any other measure it considers appropriate for the carrying out of this Act.

1974, c. 31, s. 74; 1977, c. 40, s. 18; 1979, c. 73, s. 11; 1984, c. 20, s. 7; 1991, c. 60, s. 34; 1995, c. 10, s. 17; 1997, c. 43, s. 71; 1998, c. 53, s. 18.

75. The provisions of Divisions III and IV of the Regulations Act (chapter R-18.1) relating to the publication and coming into force of draft regulations and regulations do not apply to draft regulations or regulations that may be made by the Régie for the purposes of this Act.

Every regulation made under this Act is approved by the Government, with or without amendments, and comes into force on the day of its publication in the Gazette officielle du Québec or on any later date fixed therein.

1974, c. 31, s. 75; 1977, c. 40, s. 19; 1991, c. 60, s. 35.

DIVISION IX MISCELLANEOUS AND FINAL PROVISIONS

76. This Act does not apply to:

(a)  land farmed occasionally, as determined by the regulations;

(b)  land where plants are grown which are not adapted to the soil or to the local climate, as determined by the regulations.

1974, c. 31, s. 76.

77. An insured shall not be entitled to any indemnity if the seeding or harvest is not effected at the proper time according to established and recognized local usage as determined by regulation.

1974, c. 31, s. 77.

78. The Régie may reduce the amount of any indemnity whenever it considers that the decrease in yield is attributable to the negligence or mismanagement of the insured or his agents.

1974, c. 31, s. 78.

78.1. The Régie may deduct from the indemnity payable to an insured who is renewing his participation in the scheme the amount of assessment for the new period of insurance and grant the insured the discount provided for in section 26.

1991, c. 60, s. 36.

79. Any person who knowingly makes a misrepresentation for the purpose of obtaining a certificate or an indemnity shall not be entitled to any indemnity.

1974, c. 31, s. 79.

80. Every indemnity shall be exempt from seizure; it shall be assignable, except in the collective plan, for the purpose of guaranteeing a loan made to the insured for the operation of his cultivated farm.

1974, c. 31, s. 80.

81. The Minister of Agriculture, Fisheries and Food has charge of the carrying out of this Act.

1974, c. 31, s. 82; 1979, c. 77, s. 21.

82. The Act respecting insurance (chapter A‐32) and the Act respecting the distribution of financial products and services (chapter D‐9.2) do not apply to the Régie or to its members, officers, employees, agents or mandataries.

1974, c. 31, s. 83; 1974, c. 70, s. 473; 1989, c. 48, s. 224; 1998, c. 37, s. 496.

83. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 31 of the statutes of 1974, in force on 31 December 1977, is repealed, except sections 48 (part), 81 and 85 to 89, effective from the coming into force of chapter A-30 of the Revised Statutes.

Section 82 of this Act will be amended upon the coming into force of section 496 of chapter 37 of the statutes of 1998 on the date fixed by order of the Government.