Insurance Act
R.S.O. 1990, CHAPTER I.8
Historical version for the period December 16, 2004 to March 8, 2005.
Amended by: 1993, c.10, ss.1-51; 1993, c.27, Sched.; 1994, c.11, ss.336-348; 1994, c.27, s.43 (2); 1996, c.21, ss.1-49; 1997, c.16, s.9; 1997, c.19, s.10; 1997, c.25, Sched. E, s.5; 1997, c.28, ss.64-147; 1997, c.43, Sched. F, s.5; 1999, c.6, s.31; 1999, c.12, Sched.I, s.4; 2000, c.26, Sched.G; 2001, c.8, ss.43, 44; 2002, c.14, Sched., s.10; 2002, c.17, Sched.F, Table; 2002, c.18, Sched.H, s.4; 2002, c.22, ss. 114-132; 2002, c.24, Sched.B, s.39; 2002, c.31, s.10; 2004, c.8, s.46, Table; 2004, c.11; 2004, c. 31, Sched. 20, ss. 1-12.
Skip Table of Contents
CONTENTS
Definitions1. / Definitions
PART I
GENERAL
Organization
5.1 / Insurance Ombudsman
6. / Director of arbitrations
7. / Committees
8. / Arbitrators
9. / Mediators
11. / Evidence of mediation, evaluation, arbitration
14.1 / Assessment of health system costs
Decisions of Superintendent
15. / Orders
16. / Matters before the Superintendent
17. / Appeal of Superintendent’s decision
19. / Reference hearings
20. / Exclusive jurisdiction
21. / Rules
22. / Proceedings before Director or arbitrator
Administration
23. / Records of Superintendent
25. / Information about insurers, etc.
26. / Official documents as evidence
27. / Right to a licence
28. / Decision of Superintendent
29. / Inquiries
30. / Right of access
31. / Duty to furnish information
32. / Examination of insurers
33. / Service of documents
34. / Deemed service
35. / Service of notice or process on chief agent or Superintendent, insurers outside Ontario
36. / Annual report
PART II
GENERAL PROVISIONS APPLICABLE TO INSURERS
39. / Application of Part, insurance business in Ontario
Licences
40. / Necessity for licence
41. / Reinsurance with unlicensed insurer
42. / Authorized insurers and insurance
43. / Classes of insurance and licence conditions
44. / Membership in compensation association
45. / Conditions of automobile insurance licence
46. / Scope of life insurance licence
47. / Scope of fire insurance licence
48. / Capital requirements, etc.
49. / Information preliminary to licence
50. / Documentary, etc., requirements
51. / Filing of changes in by-laws, etc.
52. / Corporate requirements
53. / Right to licence and insurer’s name
54. / Power of attorney of chief agent, insurers outside Ontario
55. / Form, term, conditions of licence
56. / Failure to pay claim, licence cancellation, etc.
58. / Disciplinary action against insurers
62. / Superintendent takes control
63. / Appeal against Tribunal order to take control
64. / Revival of licence
65. / Notice of suspension or cancellation
Withdrawal from Automobile Insurance
65.1 / Withdrawal procedure
Deposits
66. / Deposits
Records and Returns
100. / Report on share transfers
101. / Returns
101.1 / Information on claims
102. / Business statements and capital or asset requirements
103. / Notice of returns
104. / Preparation of financial statements
105. / Published statements
106. / Statements that financial standing guaranteed by government prohibited
Real Estate
107. / Powers of insurer to hold real estate
Life Insurance
109. / Variable life insurance contracts based on segregated funds
110. / Variable life insurance contracts, forms and information folders
111. / Life insurers to separate business accounts
112. / Life insurance, distribution of parts of profits to participating policyholders
Insurance with Unlicensed Insurers
113. / Insurance with unlicensed insurers
General
115. / Trafficking in life insurance policies prohibited
115. / Trafficking in life insurance policies prohibited
116. / Privileged information
117. / Form of insurance policy
118. / Violation of law, effect of, on claim for indemnity
119. / Reporting on applications to register
Agreements with Compensation Association
120. / Authority of Minister
Fees and Regulations
121. / Regulations
121.1 / Fees
121.2 / Forms
PART II.1
ACTUARY OF THE INSURER
121.3 / Definition
121.4 / Appointment of actuary
121.5 / Notice of appointment
121.6 / When officers not to be actuary
121.7 / Chief financial officer
121.8 / Revocation of appointment
121.9 / Ceasing to hold office
121.10 / Filling vacancy
121.11 / Statement of actuary
121.12 / Duty of replacement actuary
121.13 / Actuary’s valuation
121.14 / Superintendent may appoint actuary
121.15 / Right to information
121.16 / Actuary’s report
121.17 / Report to directors
121.18 / Report to officers
121.19 / Qualified privilege
121.20 / Non-application of this Part
121.21 / Non-application of s. 121.17
121.22 / Exemptions
PART III
INSURANCE CONTRACTS IN ONTARIO
122. / Application of Part
123. / Contracts deemed made in Ontario
124. / Requirement for all terms to be set out in policy; relevance of proposal, etc.
125. / Copy of proposal to be furnished to insured
126. / No contract shall be inconsistent with Act
127. / Contents of policy
128. / Contracts providing for appraisals
129. / Relief from forfeiture
130. / How policy payable
131. / Waiver of term or condition
132. / Right of claimant against insurer where execution against insured returned unsatisfied
133. / Court actions for recovery of insurance money, special rules
134. / Non-payment of premium
135. / Insurer to furnish forms for proof of loss
136. / When action may be brought under contract
Insurance as Collateral Security
137. / Mortgagee not to receive commission from insurer
138. / Right to refund of premium on termination of contract
Contracts of Guarantee Insurance
139. / Contracts of title insurance
General
140. / No racial or religious discrimination permissible
141. / Payment into court
PART IV
FIRE INSURANCE
142. / Meaning of “agricultural property”, Part IV
143. / Application of Part
144. / Extent of coverage by contract
145. / Renewal of contract
146. / Form of contract
147. / Mortgagees and other payees
148. / Statutory conditions
149. / Limitation of liability clause
150. / Rateable contribution
151. / Special stipulations
152. / Subrogation
Fire Mutuals Guarantee Fund
153. / General reinsurance agreement
169. / Fire Mutuals Guarantee Fund
PART V
LIFE INSURANCE
Definitions
171. / Definitions, Part V
Application of Part
172. / Application of Part
173. / Group insurance
Issuance of Policy and Contents Thereof
174. / Insurer to issue policy
175. / Contents of policy
176. / Contents of group policy
177. / Contents of group certificate
Conditions Governing Formation of Contract
178. / Insurable interest required
179. / Insurable interest, defined
180. / Contract taking effect
181. / Default in paying premium
182. / Payment of premium
183. / Duty to disclose
184. / Incontestability
185. / Non-disclosure by insurer
186. / Insurable age
187. / Misstatement of age in group insurance
188. / Effect of suicide
189. / Reinstatement
Designation of Beneficiaries
190. / Designation of beneficiary
191. / Designation of beneficiary irrevocably
192. / Designation in will, etc.
193. / Trustee for beneficiary
194. / Beneficiary’s share of insurance money
195. / Right to sue
196. / Insurance money free from other claims, etc.
Dealings with Contract During Lifetime of Insured
197. / Insured dealing with contract
198. / Insured entitled to dividends
199. / Transfer of ownership
200. / Effect of assignment
201. / Group life insured, enforcing rights
Minors
202. / Capacity of minors
Proceedings under Contract
203. / Proof of claim
204. / Payment of insurance money
205. / Action in Ontario
207. / Documents affecting right to insurance money
208. / Declaration as to sufficiency of proof
209. / Declaration as to presumption of death
210. / Court orders, application under s. 208 or 209
211. / Stay of proceedings
212. / Appeal, ss. 208 to 210
213. / Court orders, insufficient evidence, etc.
214. / Payment into court
215. / Simultaneous deaths
216. / Insurance money payable in instalments
217. / Insurer holding insurance money
218. / Court may order payment
219. / Costs, s. 214 or 218
220. / Minors
221. / Beneficiary under disability
Miscellaneous Provisions
222. / Presumption against agency
223. / Insurer giving information
PART VI
AUTOMOBILE INSURANCE
224. / Interpretation, Part VI
225. / Exception re insured
226. / Application of Part
226.1 / Out-of-province insurers
Approval of Forms
227. / Approval of forms
228. / Application form
Other Information
229. / Information for applicants, etc.
230. / Information from brokers
Application and Policy
231. / Persons forbidden to act as agent
232. / Policy, formal requirements
232.1 / Inspection requirements
233. / Misrepresentation or violation of conditions renders claim invalid
234. / Statutory conditions
236. / Notice of expiry or variation
237. / Limitation on termination
238. / Grounds to terminate
Motor Vehicle Liability Policies
239. / Policy coverage
240. / Insurer not liable re excluded driver
241. / Coverage of non-owner’s policy
242. / Persons deemed not owners
243. / Territorial limits
244. / Rights of unnamed insured
245. / Additional agreements
246. / Liability for contamination
247. / Other liability, possible exclusions
248. / Liability for damage caused by machinery, etc.
249. / Excluded driver endorsement
250. / Liability, possible exclusions for other uses
251. / Minimum liability under policy
252. / Liability arising from use, etc., outside Ontario
253. / Excess insurance
254. / Agreement for partial payment of claim by insured
255. / Liability for nuclear energy hazard
256. / Advance payments and release by claimant
257. / Defence where more than one contract
258. / Application of insurance money, 3rd party claims, etc.
258.1 / Notice of accident
258.2 / Application of ss. 258.3 to 258.6
258.3 / Notice and disclosure before action
258.4 / Duty to disclose limits
258.5 / Duty of insurer re settlement of claim
258.6 / Mediation
259. / Notice of action and judgment against insured
259.1 / Limitation period
Physical Damage Cover
260. / Physical damage cover, limitations and exclusions
261. / Partial payment of loss clause
262. / Claims under other contracts to be adjusted
Direct Compensation — Property Damage
263. / Accidents involving two or more insured automobiles
263.1 / Payment for collision repair
Limited Accident Insurances
265. / Uninsured automobile coverage
266. / Statutory accident principle established, automobile use, June 22, 1990 – Dec. 31, 1993
267. / Collateral source rule not to apply, automobile use, Oct. 24, 1989 – Dec. 31, 1993
267.1 / Protection from liability, automobile use, Jan. 1, 1994 - Oct. 31, 1996
267.2 / Publication of deductible amounts
Court Proceedings for Accidents on or after November 1, 1996
267.3 / Definitions, ss. 267.4 to 267.11
267.4 / Application of ss. 267.5 to 267.11, automobile use on or after Nov. 1, 1996
267.5 / Protection from liability
267.6 / No action by uninsured owner or lessee
267.7 / Joint and several liability with other tortfeasors
267.8 / Collateral benefits
267.8.1 / Mandatory arbitration re certain collateral benefits
267.9 / Proceedings by action
267.10 / Structured judgments
267.11 / No gross-up for income tax
268. / Statutory accident benefits
268.0.1 / Winding-up orders
268.1 / Publication of indexation percentage
268.2 / Rules of interpretation, Statutory Accident Benefits Schedule
268.3 / Guidelines, Statutory Accident Benefits Schedule
268.4 / Immunity
269. / Particulars of insurance
270. / Rights of unnamed insured
271. / Payment into court
273. / Claimant’s obligation to inform
273.1 / Information to Ministry of Community and Social Services, etc.
274. / Release
275. / Indemnification in certain cases
276. / Terms of certain insurances, insurance under s. 265
Other Insurance
277. / Other insurance
Subrogation
278. / Subrogation
Dispute Resolution — Statutory Accident Benefits
279. / Dispute resolution
280. / Mediation
280.1 / Neutral evaluation
281. / Litigation or arbitration
281.1 / Limitation period
282. / Arbitration
283. / Appeal against arbitration order
284. / Application for variation, Director’s or arbitrator’s order
284.1 / Restrictions on who may represent
285. / Stated case by Director
286. / When arbitrator cannot act
287. / Protection of benefits
288. / Finding of possible unfair or deceptive business practice
Changes to Statutory Accident Benefits Schedule
289. / Reports to the Assembly
289.1 / Review of this Part
PART VII
ACCIDENT AND SICKNESS INSURANCE
290. / Definitions, Part VII
291. / Application of Part
292. / Group insurance
293. / Issue of policy
294. / Contents of policy
295. / Confinement clauses void
295. / Confinement clauses void
296. / Contents of group policy
297. / Continuation of accident and sickness insurance where contract terminated
298. / Contents of group certificate
299. / Exceptions or reduction
300. / Statutory conditions
301. / Omission or variation of statutory conditions
302. / Notice of statutory conditions
303. / Termination for non-payment of initial or renewal premium
304. / Right where premium unpaid
305. / Insurable interest, defined
306. / Insurable interest required
Policies on Lives of Minors
307. / Capacity of minors
Misrepresentation and Non-Disclosure
308. / Duty to disclose
309. / Incontestability
310. / Application of incontestability to reinstatement
311. / Pre-existing conditions
312. / Misstatement of age
Beneficiaries
313. / Designation of beneficiary
314. / Death of beneficiary or insured, etc.
315. / Trustee for beneficiary
316. / Documents affecting title and assignment of contracts
317. / Insurance money free from other claims, etc.
318. / Group person insured enforcing rights
319. / Simultaneous deaths
320. / Payment into court
321. / Where beneficiary a minor
322. / Beneficiary under disability
323. / Payments not exceeding $2,000
324. / Payment of insurance money
325. / Action in Ontario
326. / Insurer giving information
327. / Undue prominence
328. / Relief from forfeiture
329. / Presumption against agency
PART X
FRATERNAL SOCIETIES
339. / Definitions, Part X
340. / Application of Part
341. / What fraternal societies required to be licensed
342. / Cases in which societies not to be licensed
343. / Societies deemed not to be fraternal societies
344. / Guarantee and endowment insurance, exception to s. 342 (b)
345. / Central body for Ontario or representative may be dealt with
346. / By-laws and rules
347. / Amendment of rules, Superintendent’s direction
348. / Rules deliverable on demand
350. / Limitation of member’s liability in fraternal society
352. / Conditions of forfeiture restricted
353. / How notice may be given to members
354. / Head offices of Ontario societies
355. / Actuary’s report
356. / Where assets of society insufficient
357. / Reduction of benefits, or increase of rates
358. / Default of society in complying with request of Superintendent
359. / Separate accounts for each class of insurance
361. / Epidemic or unforeseen contingency
362. / General or expense fund
370. / Exception as to annual statement
371. / Policy disclosures
PART XIII
RECIPROCAL INSURANCE EXCHANGES
377. / Definitions, Part XIII
378. / Authority for exchange of reciprocal contracts of insurance
379. / Subscriber not to be deemed an insurer
380. / Contract executed on behalf of subscribers
381. / Filing by members of exchange
382. / Licence for exchange, approval of change
384. / Service of process
386. / Reserves to be held by exchange
387. / Investment of funds
388. / Other insurance or reinsurance
389. / Attorney not to act until licence granted
390. / Suspension or revocation of licence
392. / Fire insurance in unlicensed exchanges may be effected outside Ontario
PART XIV
AGENTS, BROKERS AND ADJUSTERS
Licences of Insurance Agents
393. / Licensing of agents
Provisions Relating to Agents and Brokers Generally
394. / Agent or broker deemed to be insurer’s agent
395. / Fraudulent representations
396. / Personal liability of agent for unlawful contracts
Licences of Insurance Adjusters
397. / Licences of insurance adjusters
398. / Prohibition against public adjusters of motor accident claims
Partnership Licences of Agents and Adjusters
399. / Licences to partnerships
Corporation Licences of Agents and Adjusters
400. / Licences to corporations
Provisions Relating to Agents, Brokers and Adjusters Generally
401. / Acting as agent or adjuster without authority
402. / Money held in trust by agent
403. / No compensation to be paid by insurer not licensed
407. / Limited or conditional licence
PART XV
RATES AND RATING BUREAUS
408. / Meaning of “rating bureau”, Part XV
409. / Duties of rating bureaus and insurers
410. / Application re risk classification system, rates
411. / Approval of expedited applications, s. 410
412. / Approval of other applications, s. 410
412.1 / Hearing
413. / Exemptions from approval process
413.1 / Risk classification and rate determination regulations
414. / Affiliated automobile insurers
415. / Reconsideration, systems and rates
416. / Ministerial policy, statements, systems and rates
417. / Automobile insurance, systems and rates
417.0.1 / Risk classification systems, emergency vehicles
417.1 / Reports on risk classification and rate determination regulations
418. / Inquiry
PART XVI
AMALGAMATIONS AND TRANSFERS
419. / Meaning of “transfer”, Part XVI
420. / Application
421. / Transfer agreements, requirements
422. / Transfer agreements, application for approval
425. / Documents to be filed with Superintendent
426. / Approval or rejection of transfer
431. / Transfer of contracts where insurer leaves Ontario
PART XVII
INVESTMENTS
432. / Meaning of “insurer”, Part XVII
433. / Investment and lending powers
434. / Investments of other insurers
435. / Restrictions and limitations, investment and lending
436. / Prohibited loans and investments
437. / Investments, value and formal requirements
Cost of Borrowing
437.1 / Meaning of “cost of borrowing”, ss. 437.2 to 437.11
437.2 / Rebate of borrowing costs
437.3 / Disclosure of cost of borrowing
437.4 / Additional disclosure — term loans
437.5 / Disclosure in applications for credit cards, etc.
437.6 / Disclosure where credit cards, etc., issued
437.7 / Additional disclosure: loans to which ss. 437.4 and 437.6 do not apply
437.8 / Statement re mortgage renewal
437.9 / Disclosure in advertising
437.10 / Disclosing borrowing costs — advances
437.11 / Regulations re disclosure
PART XVIII
UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN THE BUSINESS OF INSURANCE
438. / Definitions, Part XVIII
439. / Unfair or deceptive acts, etc., prohibited
440. / Superintendent may investigate
441. / Action on examination or investigation
PART XIX
EXAMINATION AND ENFORCEMENT
442. / Meaning of “examination”, Part XIX
443. / Examinations, general
444. / Powers of examination, etc.
445. / Reports
446. / No liability
447. / Offences, false information, etc.
448. / Order for compliance
449. / Limitation period
Definitions
Definitions
1.In this Act, except where inconsistent with the definition sections of any Part,
“accident insurance” means insurance by which the insurer undertakes, otherwise than incidentally to some other class of insurance defined by or under this Act, to pay insurance money in the event of accident to the person or persons insured, but does not include insurance by which the insurer undertakes to pay insurance money both in the event of death by accident and in the event of death from any other cause; (“assurance contre les accidents”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “accident insurance” is repealed by the Statutes of Ontario, 2002, chapter 18, Schedule H, subsection 4(1). See: 2002, c.18, Sched.H, ss.4(1), 16(2).
“accidental death insurance” means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose life is insured; (“assurance en cas de décès accidentel”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “accidental death insurance” is repealed by the Statutes of Ontario, 2002, chapter 18, Schedule H, subsection 4(1). See: 2002, c.18, Sched.H, ss.4(1), 16(2).
“accountant” means a person who is licensed under the Public Accountancy Act; (“comptable”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “accountant” is amended by the Statutes of Ontario, 2004, chapter 8, section 46, Table by striking out “Public Accountancy Act” and substituting “Public Accounting Act, 2004”. See: 2004, c.8, ss.46, Table; 51(2).
“actuary” means a Fellow of the Canadian Institute of Actuaries; (“actuaire”)
“adjuster” means a person who,
(a)on behalf of an insurer or an insured, for compensation, directly or indirectly solicits the right to negotiate the settlement of or investigate a loss or claim under a contract or a fidelity, surety or guaranty bond issued by an insurer, or investigates, adjusts or settles any such loss or claim, or
(b)holds himself, herself or itself out as an adjuster, investigator, consultant or adviser with respect to the settlement of such losses or claims,
but does not include,
(c)a barrister or solicitor acting in the usual course of the practice of law,
(d)a trustee or agent of the property insured,
(e)a salaried employee of a licensed insurer while acting on behalf of such insurer in the adjustment of losses,
(f)a person who is employed as an appraiser, engineer or other expert solely for the purpose of giving expert advice or evidence, or
(g)a person who acts as an adjuster of marine losses only; (“expert d’assurance”)
“agent” means a person who, for compensation, commission or any other thing of value,
(a)solicits insurance on behalf of an insurer who has appointed the person to act as the agent of such insurer or on behalf of the Facility Association under the Compulsory Automobile Insurance Act, or
(b)solicits insurance on behalf of an insurer or transmits, for a person other than himself, herself or itself, an application for, or a policy of insurance to or from such insurer, or offers or assumes to act in the negotiation of such insurance or in negotiating its continuance or renewal with such insurer,
and who is not a member of the Registered Insurance Brokers of Ontario; (“agent”)
“aircraft insurance” means insurance against loss of or damage to an aircraft and against liability for loss or damage to persons or property caused by an aircraft or by the operation thereof; (“assurance-aéronef”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “aircraft insurance” is repealed by the Statutes of Ontario, 2002, chapter 18, Schedule H, subsection 4(1). See: 2002, c.18, Sched.H, ss.4(1), 16(2).
“automobile” includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails, watercraft or aircraft; (“automobile”)
“automobile insurance” means insurance,
(a)against liability arising out of,
(i)bodily injury to or the death of a person, or
(ii)loss of or damage to property,
caused by an automobile or the use or operation thereof, or
(b)against loss of or damage to an automobile and the loss of use thereof,
and includes insurance otherwise coming within the class of accident insurance where the accident is caused by an automobile or the use or operation thereof, whether liability exists or not, if the contract also includes insurance described in clause (a); (“assurance-automobile”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “automobile insurance” is repealed by the Statutes of Ontario, 2002, chapter 18, Schedule H, subsection 4(1). See: 2002, c.18, Sched.H, ss.4(1), 16(2).
“boiler and machinery insurance” means insurance against loss or damage to property and against liability for loss or damage to persons or property through the explosion, collapse, rupture or breakdown of, or accident to, boilers or machinery of any kind; (“assurance des chaudières et machines”)
Note: On a day to be named by proclamation of the Lieutenant Governor, the definition of “boiler and machinery insurance” is repealed by the Statutes of Ontario, 2002, chapter 18, Schedule H, subsection 4(1). See: 2002, c.18, Sched.H, ss.4(1), 16(2).