Cease and Desist Order Against Insurance Company of Canada ("ING") and ING Novex Insurance Company of Canada ("ING Novex")

REGARDING the Insurance Act, R.S.O. 1990,
Chapter I.8, as amended, in particular section 441.

AND REGARDING ING Insurance Company of Canada ("ING") and ING Novex Insurance Company of Canada ("ING Novex").

CEASE AND DESIST ORDER

The Superintendent of the Financial Services Commission of Ontario ("Superintendent") is of the opinion that ING and ING Novex committed an unfair or deceptive act or practice by inadvertently charging rates for coverages or categories of automobile insurance that were not approved by the Superintendent.

ING and ING Novex waive the procedural requirement under section 441(2) of the Insurance Act (the “Act”) for a Notice of Intention to make an order and their right under section 441(3) to request a hearing.

TAKE NOTICE THAT pursuant to section 441(7) of the Insurance Act, AND WITH THE CONSENT OF ING AND ING NOVEX, the Superintendent hereby orders that ING and ING Novex (“the Companies”):

(A) Reimburse all affected eligible policyholders (both current and former policyholders) in a time and manner acceptable to the Superintendent. The plan for reimbursement shall include the following features:

For insurance contracts with an effective date on or after January 1, 1999 and on or before December 31, 2005:

(i) The affected policyholder shall be reimbursed the amount that was paid in excess of the approved rate, as well as interest at an annual rate of 5% from the time of overpayment to the time of reimbursement, and historical sales tax will be applied on policies effective prior to April 1, 2004.

(ii) Reimbursement shall be by means of a cheque sent to the latest address on file. A letter will be enclosed with the cheque to explain why the policyholder received this refund, and a specific phone number will be provided to answer any questions.

(iii) In any case where the address of a former policyholder is unavailable or a cheque sent to a policyholder is returned, the Companies will make reasonable efforts to contact the brokers of these former eligible policyholders to verify whether a more up to date address can be obtained. The cheques will then be forwarded to the new addresses.

(iv) The amount, if any, where cheques have been sent and remain un-cashed as of October 10, 2007, will be sent to a charity.

For insurance contracts with an effective date on or after January 1, 2006:

(v) Add the discount in the policy management system and adjust the premium so the policyholder will ultimately pay the same premium as if the discount would have been there during the whole policy term.

(vi) In any case where the address of a former policyholder is unavailable, or a cheque sent to a policyholder is returned, the companies will make reasonable efforts to contact the brokers of the former policyholder to verify whether a more up to date address can be obtained. The cheque will be forwarded to the new address.

(vii) The amount, if any, where cheques have been sent and remain un-cashed as of October 10, 2007, will be sent to a charity.

(B) At the conclusion of the reimbursement process, the Companies shall provide the Superintendent with a written report providing details of its compliance with the reimbursement plan.

On or before May 31, 2007, the Companies shall provide written confirmation to the Superintendent that their respective Chief Operating Officers are satisfied that their written internal control procedures have been reviewed and amended so that the deficiencies that resulted in, or permitted, the charging of unapproved rates have been reasonably and appropriately addressed. This confirmation will also be reported to the Companies’ Boards of Directors.

TAKE NOTICE THAT section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

AND FURTHER TAKE NOTICE THAT section 447(4) of the Act provides that every director, officer and chief agent of a corporation who caused, authorized, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

ISSUED AT the City of Toronto, December 18, 2006

______________________________________
Robert Christie
Chief Executive Officer and
Superintendent of Financial Services

TO:

ING Insurance Company of Canada
(Compagnie d’Assurance ING du Canada)
700 University Avenue, 15th Floor
Toronto ON M5G 0A1

Attention:
Debbie Coull-Cicchini, Chief Operating Officer

AND TO:

ING Novex Insurance of Canada
(ING Novex Compagnie d’Assurance du Canada)
700 University Avenue, 15th Floor
Toronto ON M5G 0A1

Attention:
Debbie Coull-Cicchini, Chief Operating Officer