BICO and the Superintendent have achieved a regulatory compliant solution. As required by that solution, BICO’s legal contractual indemnities will be converted to insurance policies issued by a licensed insurer in accordance with the timelines outlined in the Amended Minutes of Settlement.
REGARDING the Insurance Act, R.S.O. 1990, c. I.8, as amended, in particular section 441
AND REGARDING Bridgepoint Indemnity Company (Canada) Inc.
Extension of Interim Cease and Desist Order
Bridgepoint Indemnity Company (Canada) Inc.
133 Richmond St. W
Toronto, ON M5H 2L3
On July 7, 2016, the Superintendent of Financial Services (“Superintendent”) issued an Interim Order to Cease and Desist Unlicensed Activity (the “interim Order”) against Bridgepoint Indemnity Company (Canada) Inc. (”Bridgepoint”) pursuant to subsection 441(4) of the Insurance Act (the “Act”). The Interim Order required Bridgepoint to:
- Immediately cease and refrain from conducting insurance business in the Province of Ontario, including the advertising, soliciting, offering, sale and adjusting of legal expenses insurance under the product names Legal Cost Protection, Firm Protect, File Protect, Legal Protect and Trial Protect or any other names;
- Provide the Superintendent with a copy of every contract issued by it which insures risk located in Ontario and is currently in force, within 10 days of the issuance of this Order; and
- Immediately mail to all the parties with whom Bridgepoint has subsisting contracts in Ontario a copy of this interim Cease and Desist Order and provide evidence satisfactory to the Superintendent that this mailing was done.
On the same day, the Superintendent issued a Notice of Proposal to Make a Permanent Cease and Desist Order against Bridgepoint.
On July 21, 2016, Bridgepoint filed a Request for Hearing with the Financial Services Tribunal (”the “Tribunal”) in respect of the Superintendent’s Notice of Proposal.
Pursuant to subsection 441(6) of the Act, as Bridgepoint has requested a hearing before the Tribunal, the Superintendent may extend the Interim Order until the proposal is finally determined.
For the reasons set out in the Interim Order, the Superintendent continues to be of the opinion that the interests of the public may be adversely affected by any delay in the imposition of a permanent order to cease and desist unlicensed activity against Bridgepoint.
INTERIM CEASE & DESIST ORDER
TAKE NOTICE THAT pursuant to subsection 441(6) of the Act, the Interim Cease and Desist dated
July 7, 2016 is extended until the proposal in the Notice of Proposal dated July 7, 2016 is finally determined.
AND TAKE NOTICE THAT pursuant to subsections 447(2)(b) and (3) of the Act, every person who fails to comply with an order made under this Act is guilty of an offence and every person convicted of an offence under the Act is liable to a fine of not more than $250,000.00 on a first conviction and to a fine of not more than $500,000.00 on each subsequent conviction.
AND TAKE NOTICE THAT pursuant to subsection 447(4) of the Act, every director or officer of a corporation who caused, authorized, permitted or participated in the corporation or unincorporated association committing an offence, or who failed to take reasonable care to prevent the corporation or unincorporated association from committing an offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted, and liable to a fine of not more than $100,000.00 on a first conviction and a fine of not more than $200,000.00 on each subsequent conviction.
Si vous désirez recevoir cet ordre en français, veuillez envoyer votre demande immédiatement à: Adjointe, audiences, Greffe, Commission des services financiers de l’Ontario, 5160 rue Yonge, 14em, Toronto ON M2N 6L9.
ISSUED at the City Toronto, Ontario, July 26, 2016.
“Original Signed by Brian Mills”
Superintendent of Financial Services