The Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Power of Attorney and Undertaking (PAU) was established in 1964. Generally, this document is filed by insurers in the United States who issue motor vehicle liability policies outside of Canada.
An insurer that files a PAU protects its insureds who drive their private passenger vehicles in Canada. Companies which have filed a PAU can issue a Canadian Non-resident Inter-provincial Motor Vehicle Liability Card (commonly known as a "yellow card" or "Canadian ID Card") to their insureds for driving into Canada. These insurance cards are used as evidence of insurance coverage if stopped by enforcement officials or involved in an accident in Canada. In addition, signatories to the PAU agree to certain conditions if an insured is involved in a motor vehicle accident in Canada. For example, the company agrees to meet the minimum third party liability limits required in the province or territory where the accident took place. (In most Canadian jurisdictions, the compulsory third party liability limit is C$200,000.)
Effective November 24, 2000, the national repository for the PAU was transferred from the Office of the Superintendent of Financial Institutions in British Columbia to the Canadian Council of Insurance Regulators (CCIR). For more information, see the CCIR Backgrounder: Power of Attorney and Undertakings