REGARDING the determination and definition of classes of
insurance for purposes of the Insurance Act, R.S.O. 1990, c.I.8, as amended (the "Act") and for purposes of granting licences to insurers under the Act
AND REGARDING, in particular, section 43 of the Act
CLASSES OF INSURANCE ORDER
Classes of insurance under the Act have historically been defined in section 1 of the Act and insurers have been licensed to carry on business in one or more of the distinct classes of insurance listed in R.R.O. 1990, Regulation 666 ("Regulation 666").
On July 1, 1998, section 43 of the Act was amended in order to grant the Superintendent of Financial Services (the "Superintendent") the legal authority to determine and define classes of insurance for purposes of the Act and for purposes of granting licences to insurers under the Act by way of Superintendent Order. The amendment stipulated that the existing classes of insurance listed in Regulation 666 would continue until the Superintendent made an Order that was inconsistent with Regulation 666.
By Superintendent Order dated August 5, 1999, a new class of insurance ("loss of employment insurance") was created.
In the fall of 2003, the Canadian Council of Insurance Regulators ("CCIR") agreed on a largely streamlined and harmonized set of classes of insurance and applicable definitions. This included introduction of a new class known as "other approved products" for new insurance products that do not come within any other class. The CCIR recommended that each jurisdiction make the relevant legislative and regulatory changes needed to implement the new classes and definitions, as required in each jurisdiction.
In Ontario, the existing classes of insurance definitions in section 1 of the Act were repealed and other complementary amendments were made to the Act under the Government Efficiency Act, 2002, S.O. 2002, c.18 (Bill 179). Complementary amendments were also made to other affected legislation in the Budget Measures Act (Fall) 2004, S.O. 2005, c.31 (Bill 149) and the Budget Measures Act, 2005 (No. 2), S.O. 2005, c.31 (Bill 18). These changes were made in order to facilitate implementation of the new classes of insurance and their definitions for purposes of the Act by way of Superintendent Order rather than through their definition in the Act.
All of these legislative amendments will be proclaimed in force on April 30, 2007.
On April 30, 2007, Regulation 666 will be revoked, and the following complementary changes will also be made:
- the provisions governing title insurance, currently contained in Regulation 666, will be re-enacted without change as a new regulation, Ontario Regulation 69/07,
- the regulation governing the compensation associations, currently contained in R.R.O. 1990, Regulation 667, as amended, will be revoked and enacted as a new regulation, Ontario Regulation 67/07,
- complementary regulation changes will be made to Ontario Regulation 11/01, as amended, under the Financial Services Commission of Ontario Act, 1997, S.O. 1997, c.28, to Ontario Regulation 347/04, as amended and to R.R.O. 1990, Regulation 671, as amended.
This Order is made in anticipation of the proclamation of all of these changes.
This Order sets out the new classes of insurance, and the corresponding definitions of these terms, for purposes of the Act.
The list of classes will be published in The Ontario Gazette, and will be re-published in July of each year, as required by section 43(1.2) of the Act.
ORDER
Pursuant to section 43(1) of the Act, I order that:
(a) the classes of insurance, for purposes of the Act and for purposes of granting licences to insurers under the Act, are the classes determined and defined in Schedule 1 to this Order, and
(b) the Order of the Superintendent dated August 5, 1999 defining loss of employment insurance as a class of insurance, is revoked.
Effect of Order:
The effect of this Order is that,
(a) The definitions of the classes of insurance set out in Schedule 1 replace the definitions that were previously contained in the Act and apply for purposes of the Act and regulations. Words and expressions in the Act and regulations referring to any of the classes set out and defined in Schedule 1 shall be interpreted according to those definitions.
(b) The classes of insurance for which an insurer may be licensed to carry on business under the Act shall be the classes determined and defined in Schedule 1 of this Order.
This Order shall take effect on April 30, 2007.
Dated at Toronto this 10th day of April, 2007.
Bob Christie
Chief Executive Officer and
Superintendent of Financial Services
Financial Services Commission of Ontario