Order Amending the Compliance Order of January 14, 2019 Against TD General Insurance Company

REGARDING the Automobile Insurance Rate Stabilization Act, 2003, S.O. 2003, c. 9, as amended, in particular section 11

 

AND REGARDING TD General Insurance Company

 

ORDER AMENDING THE COMPLIANCE ORDER OF JANUARY 14, 2019

 

TO:

TD General Insurance Company
320 Front Street West, 3rd Floor
Toronto ON  M5V 3B6

 

Subsection 11(1) of the Automobile Insurance Rate Stabilization Act, 2003, S.O. 2003, c. 9 (the “Act”) provides that if, in the opinion of the Superintendent of Financial Services (the “Superintendent”), an insurer is committing any act or pursuing a course of conduct that is a contravention of the Act or that might reasonably be expected to result in a situation that would constitute a contravention of the Act, the Superintendent may, without giving prior notice, make an order to take effect immediately on its making,

 

(a) requiring the insurer to cease doing or to refrain from doing any act or pursuing any course of conduct identified by the Superintendent;

 

(b) requiring the insurer to perform any act that, in the opinion of the Superintendent, is necessary to remedy the situation, including requiring an insurer to reimburse an insured in respect of any excess premium paid by the insured to the insurer by reason of the insurer’s contravention of the Act; or

 

(c) suspending or cancelling the insurer’s licence under the Insurance Act, R.S.O. 1990, c. I.8 (the “Insurance Act”).

 

Subsection 11(2) of the Act provides that at the request of an insurer that is the subject of an order under section 11 of the Act, the Superintendent shall, after giving the insurer an opportunity to make written submissions, reconsider the order. Subsection 11(3) of the Act provides that after reconsidering an order under section 11 of the Act, the Superintendent shall confirm, modify or revoke the order. Subsection 11(4) of the Act provides that an order under section 11 of the Act may be reconsidered at the request of the insurer only once and, subject to the decision of the Superintendent after a reconsideration under subsection 11(2) of the Act, is final for all purposes.

 

The Superintendent issued an Order to TD General Insurance Company on January 14, 2019 (the “Order”), as it is the opinion of the Superintendent that TD General Insurance Company is (or otherwise was) committing an act or pursuing a course of conduct that is a contravention of section 8 of the Act or that might reasonably be expected to result in a situation that would constitute a contravention of section 8 of the Act.

 

The Superintendent has determined that the Order of January 14, 2019 should be amended by extending the time periods set out in paragraphs 3, 4, 5(a) of the Order. The amendments extend the deadlines by which TD General Insurance Company is to file its Remediation Plan and to identify and retain an independent, external auditor thirty by (30) days. Accordingly, the Superintendent makes the following Amending Order.

 

AMENDING ORDER

 

IT IS ORDERED THAT paragraphs 3, 4, and 5(a) of the Superintendent’s Order of January 14, 2019 are amended as follows:

 

  1. Paragraph 3 is amended by replacing the reference to ninety (90) days with one hundred twenty (120) days;
  2. Paragraph 4 is amended by replacing the reference to ninety (90) days with one hundred twenty (120) days; and
  3. Paragraph 5(a) is amended by replacing the reference to sixty (60) days with ninety (90) days.

TAKE NOTICE THAT except as set out in this Amending Order, the Order shall remain unamended and in full force and effect in accordance with its terms.

 

AND TAKE NOTICE THAT this Amending Order takes effect immediately.

 

AND TAKE NOTICE THAT the Superintendent may make additional orders as needed in order to ensure compliance with the Order pursuant to clause (b) of subsection 11(1) of the Act.

 

AND TAKE NOTICE THAT pursuant to subsections 11(2) and 11(3) of the Act, at TD General Insurance Company’s request, the Superintendent shall give TD General Insurance Company the opportunity to make written submissions and shall, after reconsideration of the Order, confirm, modify or revoke the Order.

 

AND TAKE NOTICE THAT pursuant to subsection 11(4) of the Act, the Order may be reconsidered at TD General Insurance Company’s request only once and, subject to the decision of the Superintendent after reconsideration under subsection 11(2) of the Act, is final for all purposes.

 

AND TAKE NOTICE THAT pursuant to subsection 12(1)2 of the Act, every insurer that fails to comply with an order of the Superintendent made under section 11 of the Act is guilty of an offence and on a first conviction to a fine of not more than $250,000 and on each subsequent conviction to a fine of not more than $500,000.

 

Subjection 12(2) of the Act provides that every director, officer and chief agent of an insurer who causes, authorizes, permits or participates in the insurer committing an offence under this Act or who fails to take reasonable care to prevent the insurer from committing an offence under this Act is guilty of an offence. Subsection 12(3) of the Act provides that a person who is guilty of an offence under subsection 12(2) of the Act 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, whether the insurer is prosecuted for or convicted of an offence. Subsection 12(4) of the Act provides that if a person is convicted of an offence under the Act, the court making the conviction may, in addition to any other penalty, order the person convicted to make compensation or restitution in relation to the offence.

 

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.

 

DATED at Toronto, Ontario, February 28, 2019.

 

Original signed by

 

______________________________

Brian Mills

Superintendent of Financial Services