Administrative Penalties
Prescribed provisions
1(1) Subject to subsection (2) the Minister may give
a notice of administrative penalty under section 789 of the Act in respect of
(a) a
provision of the Act if the Act makes the contravention of that provision an
offence, or
(b) any
of the provisions of the regulations that are listed in the Schedule to this
Regulation.
(2) The
Minister shall not give a notice of administrative penalty to a holder or
former holder of a certificate of authority in respect of any act or omission
if the Minister also has a remedy against the holder or former holder under section
480 of this Act in respect of that act or omission.
Notice of
administrative penalty
2 A notice of administrative penalty must
contain the following information:
(a) the
name of the person required to pay the administrative penalty;
(b) particulars
of the contravention;
(c) the
amount of the administrative penalty and the time by which it must be paid.
Amount of penalty
3 The amount of an administrative penalty
shall be determined by the Minister, who shall take into account the following
factors:
(a) the
seriousness of the contravention;
(b) the
importance of the regulatory scheme of compliance with the provision;
(c) the
degree of wilfulness or negligence in the contravention;
(d) whether
or not there was any mitigation relating to the contravention;
(e) whether
or not steps have been taken to prevent reoccurrence of the contravention;
(f) whether
or not the person who receives the notice of administrative penalty has a
history of non‑compliance;
(g) whether
or not the person who receives the notice of administrative penalty has derived
any economic benefit from the contravention;
(h) any
other factors that, in the opinion of the Minister, are relevant.
Interest
4(1) If an administrative penalty is not paid by the
date specified in the notice, the person to whom the notice was given is liable
for the payment of interest on the unpaid amount at the rate of 12% per year,
running from the due date until the administrative penalty is fully paid.
(2) An
unpaid administrative penalty together with unpaid interest constitutes a debt
owing to the Crown and may be recovered in an action in debt.
Compensation Associations
Designation of
compensation association
5(1) The Property and Casualty Insurance
Compensation Corporation is designated as a compensation association for the
following classes of insurance:
(a) automobile
insurance;
(b) boiler
and machinery insurance;
(c) fire
insurance;
(d) inland
transportation insurance;
(e) livestock
insurance;
(f) public
liability insurance;
(g) plate
glass insurance;
(h) property
damage insurance;
(i) sprinkler
leakage insurance;
(j) theft
insurance;
(k) weather
insurance;
(l) legal
expense insurance;
(m) loss
of employment insurance in respect of policies issued by a property and
casualty company;
(n) accident
and sickness insurance in respect of policies issued by a property and casualty
company that is also licensed to offer other classes of insurance;
but those classes do
not include crop insurance, directors’ and officers’ insurance or errors and
omissions insurance.
(2) In
subsection (1),
(a) “crop
insurance” means insurance against the loss of, or damage to, crops in the
field caused by drought, flood, hail, wind, frost, lightning, excessive rain,
snow, hurricane, tornado, wildlife, fire, insect infestation, plant disease or
other peril;
(b) “directors’
and officers’ insurance” means an undertaking by an insurer
(i) to indemnify the directors and officers of a corporation in
respect of losses resulting from any claim against them for a negligent or
wrongful act, or
(ii) to indemnify a corporation for losses for which the corporation
is required or permitted by law to indemnify its directors and officers in
respect of claims against them, for negligent or wrongful acts;
(c) “errors
and omissions insurance” means an undertaking by an insurer to pay on behalf of
an insured amounts that the insured is legally obligated to pay as damages
because of an act, error or omission of the insured or of any other person for
whose acts, errors or omissions the insured is legally responsible, arising out
of the performance or intended performance of professional services for others
or a failure to perform professional services that ought to have been performed
in the insured’s professional capacity, other than medical services for another
person.
Designation of
compensation association
6 The Canadian Life and Health Insurance
Compensation Corporation is designated as a compensation association for the
following classes of insurance:
(a) life
insurance in respect of policies of that class issued by a life company other
than a mutual benefit society or a fraternal society;
(b) accident
and sickness insurance in respect of policies issued by a life company or by a
property and casualty insurer licensed to offer accident and sickness insurance
only;
(c) loss
of employment insurance in respect of policies issued by a life company.
Repeals, Expiry and
Coming into Force
Repeal
7 The Compensation
Associations and Classes of Insurance Regulation (AR 282/88) is
repealed.
Expiry
8 For the purpose of ensuring
that this Regulation is reviewed for ongoing relevancy and necessity, with the
option that it may be repassed in its present or an amended form following a
review, this Regulation expires on April 30, 2016.
AR 129/2001 s8;99/2006
Coming into force
9 This Regulation comes into force on the
coming into force of any section of the Insurance
Act (SA 1999 cI‑5.1).
Schedule
Regulatory Provisions in
Respect of Which an
Administrative Penalty is Payable
1 Provincial Companies
Regulation
- sections 2, 3, 4, 5, 6,
7(1) and 14(2) and (3).
2 Replacement of Life
Insurance Contracts Regulation
- sections 2, 8 and 10.
3 Insurance Agents and Adjusters Regulation
- sections 15(3), 18(2) and
28.
4 Fair Practices Regulation
(AR 128/2001)
- sections 2, 3 and 5(3).
5 Repealed AR 99/2006 s3.
6 Automobile Insurance
Premiums Regulation
-
sections 2, 3, 5(4), 9, 10, 11 and 12.
AR 129/2001
Sched.;382/2003;124/2004;99/2006
