Poultry Insurance Plan
made under Section 6 of the
Crop and Livestock Insurance Act
R.S.N.S. 1989, c. 113
O.I.C. 2007-394 (July 13, 2007), N.S. Reg. 339/2007
as amended to O.I.C. 2009-482 (November 24, 2009), N.S. Reg. 323/2009
1 These regulations may be cited as the Poultry Insurance Plan.
2 The purpose of this plan is to provide for insurance against a loss of poultry resulting fromthe detection of a disease designated as a peril in Section 4.
3 In this plan,
(a) “breeder” means a hen that is owned by a Nova Scotia farmer and grown in theProvince for the purpose of producing broiler or layer chicks;
Clause 3(c) replaced and relettered (a): O.I.C. 2009-482, N.S. Reg. 323/2009.
(b) “breeder pullet” means a pullet that is owned by a Nova Scotia farmer andgrown in the Province for the purpose of producing replacement breeder stock;
Clause 3(a) relettered (b): O.I.C. 2009-482, N.S. Reg. 323/2009.
(c) “broiler” means a chicken that is owned by a Nova Scotia farmer and grown inthe Province for the purpose of producing meat under a licence issued by theChicken Farmers of Nova Scotia in accordance with the Chicken Farmers ofNova Scotia Regulations made under the Natural Products Act;
Clause 3(b) relettered (c): O.I.C. 2009-482, N.S. Reg. 323/2009.
(d) “chicken” means any class of domestic fowl belonging to the species Gallusdomesticus;
(e) “commercial layer” means a hen that is purchased from a pullet grower, ownedby a Nova Scotia farmer and grown in the Province for the purpose ofproducing eggs under a licence issued by the Nova Scotia Egg Producers inaccordance with the Nova Scotia Egg Producers’ Marketing Plan made underthe Natural Products Act;
Clause 3(e) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(f) “disease” means a disease that is designated as an insurable peril in Section 4;
(g) “flock” means a group of chickens that are housed in a Nova Scotia farmer’sfacilities and are of the same age in weeks;
Clause 3(g) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(h) “hen” means a female chicken;
(i) “integrated layer” means a hen owned by a Nova Scotia farmer that was raisedas a pullet by that farmer and grown in the Province for the purpose ofproducing eggs under a licence issued by the Nova Scotia Egg Producers inaccordance with the Nova Scotia Egg Producers’ Marketing Plan made underthe Natural Products Act;
Clause 3(i) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(j)“layer” means a laying hen that is 19 weeks of age or older;
Clause 3(j) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(k) “layer pullet” means a replacement egg stock pullet that is owned by a NovaScotia farmer and grown in the Province under a permit issued by the NovaScotia Egg Producers in accordance with the regulations respecting pulletsmade under the Natural Products Act;
Clause 3(k) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(l) “poultry” means broilers, breeders, breeder pullets, layer pullets, commerciallayers and integrated layers;
Clause 3(l) amended: O.I.C. 2009-482, N.S. Reg. 323/2009.
(m) “production period” means
(i) for breeders and broilers, the period that begins on the day the breedersor broilers are placed in a production facility and ends on the day theyare removed for processing,
(ii) for layers, the period that begins on the day the layers are placed in aproduction facility and ends 52 weeks later, and
(iii) for pullets, the period that begins on the day the pullets are placed in theproduction facility and ends when they are 19 weeks of age.
Subclause 3(m)(iii) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(n) “pullet” means a female chicken that is younger than 19 weeks of age and thathas been produced for the purpose of laying eggs for human consumption.
Clause 3(n) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
Designation of perils
4 For the purpose of this plan, the poultry livestock disease infectious laryngotracheitis(ILT) is designated as an insurable peril.
5 An application for a contract of insurance must be
(a) on a Contract of Poultry Insurance Application Form provided by the
(b) accompanied by a premium deposit of at least $50; and
(c) filed with the Commission no later than 3 weeks before the applicant places aflock in a production facility.
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;
(c) a copy of this plan.
(2) If a document referred to in subsection (1) is amended while the contract ofinsurance is in force, the contract remains in effect as amended and a copy of theamendment must be delivered to the insured person.
(3) Before the Commission offers a contract of insurance to an applicant, the applicantmust 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, theCommission must refund the premium deposit, if any, that accompanied theapplication.
Duration of contract
7 (1) A contract of insurance is in force for the production period for which it is made, andcontinues in force for subsequent production periods until it is cancelled by theinsured person or the Commission in the manner prescribed by this Section.
(2) A contract of insurance may be cancelled by the insured person or the Commissionby notice in writing to the other party at least 3 weeks before the insured personplaces a new flock in a production facility.
(3) If an insured person is in arrears in a premium payment, the Commission may cancelthe contract of insurance at any time by notice in writing.
Insurable value of poultry
8 (1) The maximum insurable value of a broiler flock is based on the contract price perkilogram of chicken and the average flock weight contracted to be grown under thelicence issued by the Chicken Farmers of Nova Scotia.
(2) The maximum insurable value of a non-broiler flock is based on a schedule ofvalues per bird.
(3) The Commission must set the schedule of values and announce it to all insuredpersons before April 1 in each year.
9 (1) For each class of insurable poultry, the base premium rate per bird placed in aproduction facility must be set by the Commission and announced to all insuredpersons on or before April 1 in each year.
(2) The base premium rates must be applied to all insured flocks that are placed in aproduction facility during the 12-month period from April 1 in a year to March 31 inthe following year.
(3) An insured person must pay the total premium for a production period, less anypremium deposit, to the Commission no later than 30 days after the insured personplaces a flock of insurable poultry in a production facility.
Notice of presence of disease
10 (1) An insured person must notify the Commission in writing no later than 48 hoursafter receiving confirmation of the presence of a disease in their insured flock.
(2) A notice of the presence of a disease must be accompanied by a written statementfrom a veterinarian confirming the presence of the disease.
Evaluation of loss
11 To determine the indemnity payable for a loss in production of an insured flock, theamount of the loss must be calculated in accordance with Section 12 or 13, and the finaladjustment of loss must be calculated in accordance with Section 14.
12 (1) In this Section, “guaranteed production” of a broiler flock that has been placed in aproduction facility means the total number of kilograms of broilers in the flock.
(2) On receiving notice under Section 10 of the presence of disease in an insured broilerflock, the Commission may consent in writing to the destruction of the flock.
(3) If the Commission consents in writing to the destruction of an insured broiler flockor the flock is ordered to be destroyed under the Animal Health and Protection Actas a result of a designated peril, the amount of the loss is calculated by using thefollowing formula:
L = (P - M) I
L = the loss,
P = the guaranteed production for the flock,
M = the allowance for normal mortality reported by the Chicken Farmers ofNova Scotia, and
I = the insurable value per bird established under Section 8
Subsection 12(3) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
(4) If the Commission does not consent in writing to the destruction of an insuredbroiler flock and the flock is processed, the amount of the loss is calculated by usingthe following formula:
L = (P - M - A) I
L = the loss,
P = the guaranteed production for the flock,
M = the allowance for normal mortality reported by the Chicken Farmers ofNova Scotia,
A = the actual production for the flock, and
I = the insurable value per bird established under Section 8.
Subsection 12(14) amended: O.I.C. 2008-202, N.S. Reg. 250/2008.
Other flock losses
13 If the Commission receives notice under Section 10 that a designated peril has beendetected in an insured flock other than a broiler flock, and the flock is ordered to bedestroyed under the Animal Health and Protection Act as a result of the designated peril,the amount of the loss must be calculated based on the week in the production cycle duringwhich the flock is destroyed, in accordance with the schedule of values per bird establishedunder Section 8.
Final adjustment of loss
14 (1) Subject to subsections (2) and (3) and Section 15, the indemnity payable to aninsured person in the final adjustment of loss is 90% of the amount of loss calculatedunder Section 12 or 13.
(2) The Commission must determine a deductible amount to be applied in a finaladjustment of loss and must announce that deductible to all insured persons beforeApril 1 in each year.
(3) Before calculating the indemnity payable, the Commission must deduct any salvagevalue arising out of the destruction of an insured flock.
15 (1) The maximum indemnity for which the Commission is liable under a contract ofinsurance is the insured value of the poultry less any payments received
(a) under the Health of Animals Act (Canada);
(b) for salvage; or
(c) from any agency other than the Commission.
(2) The Commission is not responsible for transportation costs for salvage, cleanup costsor 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 theassets in the Livestock Insurance Fund Balance held by the Commission.
16 If the Commission and an insured person fails to resolve any dispute arising out of theadjustment of loss under a contract of insurance, and the requirements of the regulationsmade under the Crop and Livestock Insurance Act respecting the filing of a proof of lossform are complied with, and either party wishes the dispute determined by arbitration, thatparty must notify the other party and the Crop and Livestock Commission ArbitrationBoard in writing no later than 90 days after the end of the insurance year in which the lossoccurred that they wish the dispute to be determined in accordance with the ArbitrationProceedings Regulations made under the Crop and Livestock Insurance Act.
Form 1 - Contract of Insurance - Poultry
The Crop and Livestock Insurance Act
Contract of Insurance
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 insured person has applied for a Contract of Insurance under the Crop andLivestock Insurance Act (“the Act”) and the Poultry Insurance Plan made under the Act (“thePlan”) and has paid a premium in respect thereof:
Now therefore, subject to the Act and the Plan, where in a year the insured person suffers a lossin the death of an insured animal(s) from one or more of the perils designated in the Plan, theCommission, subject to the terms and conditions hereinafter set forth, agrees to indemnify theinsured person in respect of such loss.
Terms and Conditions
1 In this contract, an insured animal(s) means an insurable animal(s) in respect of which thePlan has been established.
Extent of insurance
2 (a) The insured person shall offer, for insurance purposes, all insurable animals forwhich an application for Poultry Insurance is made.
(b) This contract does not apply to diseases other than those specified in the Plan,notwithstanding the Commission may make exceptions to the exclusions.
Causes of loss not insured against
3 This contract does not insure against, and no indemnity shall be paid in respect of, a deathof an insured animal(s) resulting from
(a) negligence, misconduct, or poor animal husbandry practices of the insuredperson or their agents or employees, or
(b) a peril other than a peril designated in the Plan.
Misrepresentation, violation of conditions or fraud
4 Where, in respect of an insured animal(s), the insured person
(a) in their application for insurance or registration form
(i) gives false particulars to the prejudice of the Commission, or
(ii) knowingly misrepresents or fails to disclose any fact required to be statedtherein:
(b) contravenes a term or condition of this contract;
(c) commits a fraud; or
(d) willfully makes a false statement in respect of any claim under this contract,
a claim by the insured person is invalid and their right to recover indemnity is forfeited. Ifthe insured person fails to observe and conform to any of the terms or conditions of thispolicy, the policy is void.
Waiver of alteration
5 No term or condition of this contract or the Plan is deemed to be waived or altered inwhole or in part by the Commission unless the waiver or alteration is clearly expressed inwriting signed by the Commission or a representative authorized for that purpose by theCommission.
Interest of other persons
6 Notwithstanding that a person other than the insured person holds an interest of any kindin an insured animal, for the purposes of this contract,
(a) the interest of the insured person is deemed to be the full value of the totalcoverage provided;
(b) except as provided in paragraph (7) no indemnity shall be paid to any personother than the insured person;
(c) the insured person is not entitled to a claim from the Commission under morethan one policy of insurance in respect of an animal.
Assignment or [of] right to indemnity
7 The insured person may assign all or part of their right to indemnity under this contract,but an assignment is not binding on the Commission and no payment of indemnity shall bemade to an assignee unless
(a) the assignment is made on a form provided by the Commission; and
(b) the Commission consents thereto in writing.
Notice of claim
8 (1) Where death or disease of an insured animal(s) results from one or more of the perilsinsured against, the insured person shall notify the Commission as specified in thePlan.
(2) The Commission, in respect of anything insured under this contract, is entitled to usethe name of the insured for the purpose of making any claim for damages againstany person or persons, company or companies or Government or for any otherpurpose whatsoever connected with this contract and the Commission is also entitledto enforce, for the benefit of the Commission, any order made for costs or otherwisein connection with any such claims. The insured shall advise the Commission of anyclaim, remedy or cause of action against any third party and shall not pursue anysuch claim, remedy or cause without the Commission’s agreement thereto in writing.
Other compensation payments
9 If at the time of any claim under this contract there be any other compensation or salvagepayments upon an animal(s), hereby insured and claimed for, whether effected by theinsured person or any other person, the Commission is only liable according to the Plan.
Adjustment of loss
10 (1) The indemnity payable for death to an insured animal(s) shall be determined in themanner prescribed by the regulations.
(2) The Commission may cause the claim to be appraised by any method that itconsiders proper.
(3) No indemnity shall be paid in respect of an insured animal(s) unless the insuredperson establishes the cause of loss being certified by a veterinarian.
Proof of loss
11 (1) A claim for indemnity shall be made on a Proof of Loss Form provided by theCommission and shall be filed with the Commission no later than 60 days after thedate of death of the insured animal(s).
(2) Subject to subsection (3), a claim for indemnity shall 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 the agent; or
(b) in the case of the absence or inability of the insured person or on their failureor refusal to do so, by an assignee under an assignment made in accordancewith Section 7.
12 Where the Commission and the insured person fail to resolve any dispute respecting theadjustment of a loss under this contract, the matter shall be determined in accordance withthe arbitration regulations.
Time for payment of indemnity
13 (1) Except as otherwise provided in the Plan, no indemnity under this contract becomesdue and payable until the end of the year in which the loss or damage was sustained.
(2) Where the indemnity payable by the Commission under this contract is establishedby the filing of a Proof of Loss Form or by an award of an arbitrator or board ofarbitration, it shall be paid no later than 60 days after the date the Commissionreceives the Proof of Loss Form or award, as the case may be.
(3) Nothing in this paragraph prevents the Commission from paying indemnity underthis contract at an earlier date.
14 Where the Commission has paid a claim under this contract, the Commission issubrogated to the extent thereof to all rights of recovery of the insured person against anyperson and may bring action for the full amount in the name of the insured person toendorse those rights.
Right of entry
15 The insured shall permit the Commission or its agents right of entry to the premises toview insured animal(s) and to furnish any information related to this contract, and shallcomply with requirements made by the Commission or by a veterinarian employed by it.
Death or assignment under the Bankruptcy Act
16 This contract terminates in respect of each insured animal at the end of the year in whichthe death of the insured person occurs or an authorized assignment is made by the insuredperson under the Bankruptcy Act (Canada).
17 (1) Any written notice to the Commission shall be given by delivery thereof or bysending it by mail to the Commission.
(2) Written notice to the insured person shall be given by delivery thereof or by sendingit by mail, addressed to the insured person at their last post office address on filewith the Commission.
18 The Commission may at any time, by notice in writing to that effect sent to the insuredperson under registered cover to the insured person’s last known address, cancel thiscontract without reason assigned as from the date of such notice. Any such notice shall bewithout prejudice to the rights of the insured person in respect of any prior happening andthe Commission will return to the insured person, on demand, that portion of the premiumcorresponding to the unexpired period of this policy.
In witness thereof, the Nova Scotia Crop and Livestock Insurance Commission has caused thisContract of Insurance to be signed by its Executive Secretary or any authorized member of theCommission, but the same shall not be binding upon the Commission until countersigned by aduly authorized representative thereof.
Countersigned and dated at on ___________________, 20__ .
Duly authorized representative Executive Secretary