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
Interim Cease and Desist Order
To: Bridgepoint Indemnity Company (Canada) Inc.
Section 441 of the Insurance Act (the “Act”) provides that the Superintendent of Financial Services may give notice in writing of a cease and desist order with respect to unfair or deceptive acts or practices.
Section 441(4) of the Act provides that if the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order, the Superintendent, without prior notice, may make an interim order which shall take effect immediately and which will become permanent on the 15th day after its making unless within that time the person requests a hearing before the Financial Services Tribunal.
The Superintendent is of the opinion that Legal Cost Protection (the “Product”), a product offered for purchase by Bridgepoint Indemnity Company (Canada) Inc. (“Bridgepoint”) meets the criteria to be classed as insurance pursuant to the Insurance Act, R.S.O. 1990, c. I.8 (the “Act”). Section 40(2) of the Act states that no person shall carry on business as an insurer or engage in an act constituting the business of insurance in Ontario without a licence under the Act. Bridgepoint is not licensed.
Accordingly, the Superintendent will issue a Notice of Proposal to Make a Permanent Cease and Desist Order and makes this Interim Cease and Desist Order.
Interim Cease & Desist Order
TAKE NOTICE THAT pursuant to section 441 the Act, Bridgepoint Indemnity Company (Canada) Inc. is ordered 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.
TAKE NOTICE THAT this Interim Order takes effect immediately and will remain in effect until the expiry of the period for requesting a hearing in respect of the Superintendent’s Notice of Proposal to Make a Permanent Cease and Desist Order (15 days after the Notice is given, or deemed to have been delivered).
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.
ISSUED at the City Toronto, Ontario, July 7, 2016.
“Original Signed by Brian Mills”
Superintendent of Financial Services