Administrative Monetary Penalties and Ontario Insurance Sector - Frequently Asked Questions

1. Why is the government implementing Administrative Monetary Penalties (AMPs) in the insurance sector?
In the 2012 Ontario Budget, the government committed to implementing AMPs to address a gap in the regulatory tools that are available to FSCO in regulating insurance in Ontario.  AMPs are an effective and efficient way to address contraventions of law.
2. What legislation gives the Superintendent (FSCO) authority to impose AMPs?
The following legislation and regulations contain the provisions regarding AMPs:
  • Insurance Act, Ontario Regulation 408/12
  • Compulsory Automobile Insurance Act, Ontario Regulation 409/12
  • Automobile Insurance Rate Stabilization Act, 2003, Ontario Regulation 410/12
A detailed list of violations and penalty amounts can be found in the schedules of the AMP regulations.
Go to [New Window] for copies of these statutes and regulations.
3. What are some examples of AMPs?
AMPs can be imposed for breaches of orders, undertakings and licence conditions, as well as for contraventions of statutory provisions listed in the above regulations.  Examples include:
  • Failure of agent to meet continuing education requirements
  • Failure of agent to meet errors and omissions insurance requirements.
  • Failure of agent to notify Superintendent of address change
  • False billing practices
  • Failure of insurer to charge authorized rates
  • Engaging in prohibited acts and/or practices
  • Acting as an agent when unlicensed or suspended
  • Other unfair or deceptive acts/practices
4. How are AMPs imposed?
AMPs can be imposed one of two ways, depending on whether the AMP is a Summary AMP or a General AMP.
Summary AMPs are imposed as follows:
  • FSCO will notify the affected person that an AMP may be ordered and that the affected person has 10 days to make submissions regarding the AMP.
  • FSCO considers any submissions made within the 10-day period and decides whether an AMP will be issued.
  • If FSCO decides to issue the AMP, the affected person will receive an AMP Order.
  • The affected person has 15 days after receipt of the AMP Order to appeal the AMP to the Financial Services Tribunal.
General AMPs are imposed as follows:
  • FSCO issues a Notice of Proposal to the affected person.
  • The affected person has 15 days after the Notice of Proposal is given to request a hearing regarding the AMP to the Financial Services Tribunal.
  • If the Financial Services Tribunal upholds the proposal, an AMP order is issued.
5. I have been issued an order to pay an AMP.  When do I have to submit payment?
If an AMP has been imposed, a person or entity must pay no later than 30 days, or a longer time specified in the order, after having been given notice of the order to impose the penalty.
6. Does FSCO have authority to impose AMPs in other regulated sectors?
Currently, FSCO has the authority to impose AMPs under the Mortgage Brokerages, Lenders, and Administrators Act, 2006 and the Credit Unions and Caisses Populaires Act, 1994.