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Insurance Act

ONTARIO REGULATION 408/12

ADMINISTRATIVE PENALTIES

Consolidation Period: From February 12, 2015 to the e-Laws currency date.

Last amendment: 30/15.

Legislative History: 238/13, 230/14, 262/14, 30/15.

This is the English version of a bilingual regulation.

Interpretation

Interpretation

1. A provision that is listed or set out in a schedule to this Regulation without reference to a statute or regulation is a provision of the Act.  O. Reg. 408/12, s. 1.

General Administrative Penalties Imposed under Section 441.3 of the Act

Prescribed provisions

2. The provisions of the Act or of a regulation that are listed in Schedules 1, 2 and 2.1 are prescribed for the purpose of imposing a general administrative penalty under section 441.3 of the Act.  O. Reg. 408/12, s. 2; O. Reg. 230/14, s. 1.

Maximum penalty

3. (1) The maximum penalty that may be imposed under section 441.3 of the Act for a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 1 is the maximum amount specified in subsection 441.5 (1) of the Act.  O. Reg. 408/12, s. 3 (1).

(2) The maximum penalty that may be imposed under section 441.3 of the Act for a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 2 is,

(a) $100,000 for a person other than an individual;

(b) $50,000 for an individual.  O. Reg. 408/12, s. 3 (2).

(3) The maximum penalty that may be imposed under section 441.3 of the Act for a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 2.1 is $25,000. O. Reg. 230/14, s. 2.

Determination of amount of penalty

4. (1) The Superintendent is authorized to determine the amount of a penalty imposed under section 441.3 of the Act, subject to the limits set out in section 3.  O. Reg. 408/12, s. 4 (1).

(2) The Superintendent shall consider only the following criteria when determining the amount of an administrative penalty to be imposed under section 441.3 of the Act for a purpose set out in section 441.2 of the Act: 

1. The degree to which the contravention or failure was intentional, reckless or negligent.

2. The extent of the harm or potential harm to others resulting from the contravention or failure.

3. The extent to which the person tried to mitigate any loss or to take other remedial action.

4. The extent to which the person derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure.

5. Any other contraventions of or failures to comply with a requirement established under the Act or with any other financial services legislation of Ontario or of any jurisdiction during the preceding five years by the person.  O. Reg. 408/12, s. 4 (2).

Deadline for paying penalty

5. (1) A person on whom a penalty has been imposed under section 441.3 of the Act shall pay the penalty no later than 30 days after the person is given notice of the order imposing the penalty or such longer time as may be specified in the order.  O. Reg. 408/12, s. 5 (1).

(2) If a person requests a hearing on the notice of a proposal to impose a penalty in accordance with subsection 441.3 (5) of the Act, the person shall pay the penalty no later than 30 days after the matter is finally determined or such longer time as may be specified in the order.  O. Reg. 408/12, s. 5 (2).

Summary Administrative Penalties Imposed under Section 441.4 of the Act

Prescribed provisions

6. The provisions of the Act or of a regulation that are set out in Column 1 of Schedule 3 and the provisions of the Act that are listed in Schedule 4 are prescribed for the purpose of imposing a summary administrative penalty under section 441.4 of the Act.  O. Reg. 408/12, s. 6.

Amount of penalty

7. The amount that is set out in Column 2 of Schedule 3 opposite a provision set out in Column 1 of Schedule 3 is the penalty that may be imposed under section 441.4 of the Act for a contravention of or failure to comply with a requirement imposed by that provision.  O. Reg. 408/12, s. 7.

Daily penalty

8. (1) Subject to subsection (2), the Superintendent may impose a penalty of $250 for each day or part of a day on which a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 4 occurs or continues.  O. Reg. 408/12, s. 8 (1).

(2) The maximum penalty that may be imposed under section 441.4 of the Act for a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 4 is the maximum amount specified in subsection 441.5 (2) of the Act.  O. Reg. 408/12, s. 8 (2).

Deadline for paying penalty

9. (1) A person on whom a penalty has been imposed under section 441.4 of the Act shall pay the penalty no later than 30 days after the person is given notice of the order imposing the penalty or such longer time as may be specified in the order.  O. Reg. 408/12, s. 9 (1).

(2) If a person appeals the Superintendent’s order in accordance with subsection 441.4 (4) of the Act, the person shall pay the penalty no later than 30 days after the matter is finally determined or such longer time as may be specified in the varied or confirmed order.  O. Reg. 408/12, s. 9 (2).

10. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 408/12, s. 10.

Schedule 1
General Administrative Penalties Imposed under Section 441.3 of the Act — Maximum Penalty Specified in Act

Item

Provision

1.

Revoked: O. Reg. 238/13, s. 1 (1).

2.

Revoked: O. Reg. 238/13, s. 1 (1).

3.

subsection 40 (1)

4.

subsection 40 (2)

5.

subsection 40 (3)

6.

subsection 40 (4)

7.

subsection 40 (6)

8.

subsection 40 (7)

9.

subsection 65.1 (2)

10.

subsection 102 (8)

11.

subsection 102 (11)

12.

subsection 110 (2)

13.

clause 110 (6) (a)

14.

clause 110 (6) (b)

15.

section 115

16.

subsection 117 (1)

17.

subsection 117 (3)

18.

subsection 237 (1)

19.

subsection 237 (2)

20.

subsection 238 (1)

20.1

subsection 288.2 (1)

21.

subsection 392.2 (6)

22.

section 395

23.

subsection 413.1 (1)

24.

subsection 417 (1)

25.

subsection 417 (2)

26.

section 439, paragraph 2 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

27.

section 439, paragraph 3 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

28.

section 439, paragraph 4 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

29.

section 439, paragraph 5 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

30.

section 439, paragraph 6 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

31.

section 439, paragraph 7 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

32.

section 439, paragraph 8 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

33.

section 439, paragraph 9 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

34.

section 439, paragraph 10 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

35.

section 439, paragraph 11 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

36.

section 439, paragraph 12 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

37.

section 439, paragraph 13 of section 1 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

38.

section 439, section 2 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

39.

section 439, section 3 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

40.

section 439, section 5 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

41.

section 439, section 6 of O. Reg. 7/00 (Unfair or Deceptive Acts or Practices)

42.

section 439, section 5 of O. Reg. 132/97 (Variable Insurance Contracts)

43.

section 439, section 6 of O. Reg. 132/97 (Variable Insurance Contracts)

44.

section 439, section 8 of O. Reg. 132/97 (Variable Insurance Contracts)

44.1

subsection 442.1 (5)

44.2

subsection 442.3 (1)

44.3

subsection 442.3 (3), but only in respect of a request under subsection 442.3 (1)

44.4

subsection 443 (2)

44.5

subsection 443 (3)

44.6

subsection 443 (3.1)

44.7

subsection 444 (6)

44.8

subsection 446.1 (1)

44.9

subsection 446.1 (2)

45.

clause 447 (2) (a)

46.

clause 447 (2) (a.1)

47.

clause 447 (2) (a.2)

48.

clause 447 (2) (a.3)

49.

section 2 of O. Reg 347/04 (Agents)

50.

section 12 of O. Reg. 347/04 (Agents)

51.

section 17 of O. Reg. 347/04 (Agents)

52.

subsection 2.1 (2) of O. Reg. 283/95 (Disputes Between Insurers)

53.

subsection 2.1 (3) of O. Reg. 283/95 (Disputes Between Insurers)

54.

subsection 2.1 (5) of O. Reg. 283/95 (Disputes Between Insurers)

55.

subsection 2.1 (6) of O. Reg. 283/95 (Disputes Between Insurers)

56.

subsection 2.1 (7) of O. Reg. 283/95 (Disputes Between Insurers)

57.

subsection 3.1 (2) of O. Reg. 283/95 (Disputes Between Insurers)

O. Reg. 408/12, Sched. 1; O. Reg. 238/13, s. 1; O. Reg. 230/14, s. 3; O. Reg. 262/14, s. 1.

Schedule 2
general administrative penalties imposed under section 441.3 of the act — lesser maximum penalties prescribed by subsection 3 (2)

Item

Provision

1.

section 105

2.

section 106

3.

subsection 109 (1)

4.

subsection 110 (5)

5.

section 111

6.

section 121.15

7.

subsection 227 (1)

8.

subsection 227 (7)

9.

section 228

10.

subsection 232 (8)

11.

section 371

12.

subsection 397 (7)

13.

subsection 400 (9)

14.

section 401

15.

section 403

16.

subsection 413.1 (2)

17.

subsection 417.0.1 (1)

18.

subsection 417.0.1 (3)

19.

section 439, section 7 of O. Reg. 132/97 (Variable Insurance Contracts)

20.

section 439, clause 9 (a) of O. Reg. 132/97 (Variable Insurance Contracts)

21.

section 439, clause 9 (b) of O. Reg. 132/97 (Variable Insurance Contracts)

22.

section 439, clause 9 (c) of O. Reg. 132/97 (Variable Insurance Contracts)

23.

section 439, section 9.1 of O. Reg. 132/97 (Variable Insurance Contracts)

24.

subsection 445 (1)

25.

subsection 445 (2)

26.

section 13 of O. Reg. 347/04 (Agents)

27.

section 16 of O. Reg. 347/04 (Agents)

O. Reg. 408/12, Sched. 2; O. Reg. 230/14, s. 4.

schedule 2.1
general administrative penalties imposed under section 441.3 of the act — lesser maximum penalties prescribed by subsection 3 (3)

Item

Provision

1.

section 3 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

2.

subsection 4 (1) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

3.

subsection 4 (2) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

4.

section 5 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

5.

section 6 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

6.

section 7 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

7.

section 8 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

8.

subsection 9 (1) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

9.

subsection 10 (1) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

10.

section 11 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

11.

section 12 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

12.

section 13 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

13.

section 13.1 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

14.

section 14 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

15.

section 15 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

16.

subsection 16 (2) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

17.

section 17 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

18.

section 18 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

19.

section 2 of O. Reg. 349/13 (Service Providers — Principal Representatives)

O. Reg. 230/14, s. 5; O. Reg. 30/15, s. 1.

Schedule 3
Summary Administrative Penalties Imposed under Section 441.4 of the Act — Prescribed Penalty

Item

Column 1 — Provision

Column 2 — Penalty

1.

subsection 35 (2)

$1,000

2.

section 51

$1,000

3.

subsection 54 (7)

$1,000

4.

subsection 101 (4)

$1,000

5.

section 121.5

$1,000

6.

subsection 121.8 (2)

$1,000

7.

section 121.10

$1,000

8.

section 121.11

$1,000

9.

section 147

$1,000

10.

subsection 174 (4)

$1,000

11.

section 177

$1,000

12.

subsection 229 (1)

$1,000

13.

subsection 230 (1)

$1,000

14.

subsection 230 (2)

$1,000

15.

subsection 230 (3)

$1,000

16.

subsection 232 (5.2)

$1,000

17.

section 232.1

$1,000

18.

subsection 236 (1)

$3,000

19.

subsection 236 (2)

$3,000

20.

subsection 236 (3)

$3,000

21.

subsection 346 (1)

$1,000

22.

section 355

$1,000

23.

subsection 392.6 (4)

$1,000

24.

Revoked: O. Reg. 262/14, s. 2 (2).

25.

subsection 399 (3)

$3,000

26.

subsection 414 (2.1)

$1,000

27.

section 5.1 of O. Reg. 347/04 (Agents)

$1,000

28.

subsection 10 (1) of O. Reg. 347/04 (Agents)

$1,000

29.

subsection 11 (1) of O. Reg. 347/04 (Agents)

$3,000

30.

section 14 of O. Reg. 347/04 (Agents)

$1,000

31.

subsection 15 (1) of O. Reg. 347/04 (Agents)

$3,000

32.

subsection 15 (2) of O. Reg. 347/04 (Agents)

$3,000

33.

subsection 3 (5.1) of Reg. 664, R.R.O. 1990 (Automobile Insurance)

$1,000

34.

subsection 3 (6) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

35.

subsection 17 (1.1) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

36.

subsection 17 (2) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

37.

subsection 17 (3) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

38.

subsection 17 (4) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

39.

subsection 17 (6) of Reg. 664 of R.R.O. 1990 (Automobile Insurance)

$1,000

40.

subsection 2 (1) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

41.

subsection 2 (2) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

42.

subsection 2 (3) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

43.

subsection 2 (4) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

44.

section 2.1 of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

45.

section 2.2 of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

46.

subsection 3 (1) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

47.

subsection 3 (2) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

48.

subsection 3.1 (1) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

49.

subsection 3.1 (2) of Reg. 674 of R.R.O. 1990 (Replacement of Life Insurance Contracts)

$1,000

50.

section 19 of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

$250

51.

subsection 20 (1) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

$250

52.

subsection 20 (2) of O. Reg. 90/14

 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

$250

53.

subsection 21 (1) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

$1,000

54.

subsection 21 (2) of O. Reg. 90/14 (Service Providers — Standards for Business Systems and Practices and Other Prescribed Conditions)

$1,000

O. Reg. 408/12, Sched. 3; O. Reg. 230/14, s. 6; O. Reg. 262/14, s. 2; O. Reg. 30/15, s. 1.

Schedule 4
Summary Administrative Penalties Imposed under Section 441.4 of the Act — Daily Penalty

Item

Provision

1.

subsection 101 (1)

2.

subsection 101 (2)

3.

section 101.1

4.

clause 102 (1) (a)

5.

clause 102 (1) (b)

6.

subsection 102 (3)

7.

subsection 121.13 (3)

O. Reg. 408/12, Sched. 4.

 

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