O. Reg. 37/10: Unfair or Deceptive Acts or Practices
filed February 26, 2010 under Insurance Act, R.S.O. 1990, c. I.8Skip to content
ontario regulation 37/10
made under the
Made: February 24, 2010
Filed: February 26, 2010
Published on e-Laws: March 2, 2010
Printed in The Ontario Gazette: March 13, 2010
Amending O. Reg. 7/00
(Unfair or Deceptive Acts or Practices)
1. Ontario Regulation 7/00 is amended by adding the following section:
0.1 In this Regulation,
“affiliated insurer” means an insurer that is considered to be affiliated with another insurer under subsection 414 (3) of the Act; (“assureur du même groupe”)
“credit information” means information about a person’s creditworthiness, including the person’s credit score, credit-based insurance score, credit rating and information about or derived in whole or in part from his or her occupation, previous places of residence, number of dependants, educational or professional qualifications, current or previous places of employment, estimated income, outstanding debt obligations, past debt payment history, cost of living obligations and assets; (“information de crédit”)
“declination grounds” means the grounds on which an insurer is authorized under the Act to decline to issue or to terminate or refuse to renew a contract of automobile insurance or to refuse to provide or continue a coverage or endorsement; (“motifs de refus”)
“prohibited factor” means,
(a) any reason or consideration that, under section 5 of Regulation 664 of the Revised Regulations of Ontario, 1990 (Automobile Insurance), made under the Act, insurers are prohibited from using in the manner described in that section,
(b) any fact or factor that, under section 16 of Regulation 664 of the Revised Regulations of Ontario, 1990, insurers are prohibited from using as elements of a risk classification system, and
(c) any other factor that is an estimate of, a surrogate for or analogous to a prohibited factor referred to in clause (a) or (b); (“critère interdit”)
“prohibited manner” means a manner that is subjective or arbitrary or that bears little or no relationship to the risk to be borne by the insurer. (“manière interdite”)
2. (1) Section 2 of the Regulation is amended by adding the following paragraphs:
4. When such a person uses credit information or a prohibited factor,
i. in processing or otherwise responding to requests for quotations for automobile insurance,
ii. in processing or otherwise responding to requests for applications to apply for automobile insurance,
iii. in processing or otherwise responding to completed and signed applications for automobile insurance,
iv. in processing offers to renew existing contracts of automobile insurance, or
v. in connection with any other matter relating to quotations for automobile insurance, applications for automobile insurance or renewals of existing contracts of automobile insurance.
5. When such a person applies any information or other factor in a prohibited manner on receiving a request for a quotation for automobile insurance, a request for an application to apply for automobile insurance, an application for automobile insurance or in connection with an offer to renew an existing contract of automobile insurance.
6. When such a person requires someone to consent or to obtain the consent of another person to the collection, use or disclosure of any credit information as a condition for providing a quotation for automobile insurance or an offer to renew an existing contract of automobile insurance.
7. When such a person collects, uses or discloses any credit information about someone in any manner in connection with automobile insurance, other than,
i. for the limited purposes, if any, described in the form of application for insurance approved by the Superintendent under subsection 227 (1) of the Act, or
ii. in accordance with the consent obtained in compliance with the Personal Information Protection and Electronic Documents Act (Canada) of the person to whom the information relates.
8. When, in connection with a request for a quotation for automobile insurance or an application for automobile insurance made to an affiliated insurer, or an offer by an affiliated insurer to renew an existing contract of automobile insurance, such a person fails to provide the lowest rate available from the insurer or any of the insurers with which it is affiliated in accordance with,
i. their declination grounds, and
ii. their rates and risk classification systems as approved under the Act or the Automobile Insurance Rate Stabilization Act, 2003.
(2) Section 2 of the Regulation is amended by adding the following subsection:
(2) The reference to the “lowest rate available” in paragraph 8 of subsection (1) is a reference to the lowest rate available having regard to all of the circumstances, including the means of distribution through which the request, application or offer is made.
3. The Regulation is amended by adding the following section:
6. For the purposes of the definition of “unfair or deceptive acts or practices” in section 438 of the Act, each of the following actions is prescribed as an unfair or deceptive act or practice in relation to a claim for statutory accident benefits under the Statutory Accident Benefits Schedule — Effective September 1, 2010, made under the Act (in this section referred to as the Schedule):
1. The failure or refusal of an insurer without reasonable cause to pay a claim for goods or services or for the cost of an assessment within the time prescribed for payment in the Schedule.
2. The making of a statement by or on behalf of an insurer for the purposes of an adjustment or settlement of a claim if the insurer knows or ought to know that the statement misrepresents or unfairly presents the findings or conclusions of a person who conducted an examination under section 44 of the Schedule.
4. This Regulation comes into force on the later of September 1, 2010 and the day it is filed.