Regulation - LGIC
Proposed Amendments to O. Reg. 579/05 under the Real Estate and Business Brokers Act, 2002
Regulation Number(s):
O. Reg. 579/05
Instrument Type:
Regulation - LGIC
Bill or Act:
Real Estate Business Brokers Act, 2002
Summary of Proposal:
The Ministry of Government and Consumer Services is seeking input on draft regulatory amendments to the insurance requirements under Regulation 579/05 of the Real Estate and Business Brokers Act, 2002 (REBBA). The proposed amendments are intended to update the regulation and assist the Real Estate Council of Ontario (RECO) when negotiating with insurers and in administering the group insurance policy.
This posting is the second regulatory posting on this topic. In March 2015, the ministry posted a policy paper for public consultation. For reference, the original posting can be found at:
http://www.ontariocanada.com/registry/view.do?postingId=17662&language=en
These draft regulatory amendments include proposals that were consulted on in March 2015 as well as two additional technical amendments to remove the conditions associated with deposit insurance and commission protection insurance. This proposal would expand the scope of coverage and clarify and align the regulation with current practice regarding registrant participation in the group insurance.
If approved and implemented, the proposed regulatory amendments would take effect on January 1, 2017. The proposed changes would:
• replace term "errors and omissions insurance" with "professional liability insurance";
• specify in regulation that registrants are required to pay the deductible surcharge under the insurance policy;
• establish minimum insurance coverage amounts instead of maximum amounts as currently specified in regulation;
• remove conditions currently included in the definitions of commission protection and deposit insurance; and
• clarify that all registrants are required to participate in the group insurance.
The ministry welcomes feedback and encourages anyone interested to provide comments on the proposal. Interested parties can respond by e-mail or mail.
This posting is the second regulatory posting on this topic. In March 2015, the ministry posted a policy paper for public consultation. For reference, the original posting can be found at:
http://www.ontariocanada.com/registry/view.do?postingId=17662&language=en
These draft regulatory amendments include proposals that were consulted on in March 2015 as well as two additional technical amendments to remove the conditions associated with deposit insurance and commission protection insurance. This proposal would expand the scope of coverage and clarify and align the regulation with current practice regarding registrant participation in the group insurance.
If approved and implemented, the proposed regulatory amendments would take effect on January 1, 2017. The proposed changes would:
• replace term "errors and omissions insurance" with "professional liability insurance";
• specify in regulation that registrants are required to pay the deductible surcharge under the insurance policy;
• establish minimum insurance coverage amounts instead of maximum amounts as currently specified in regulation;
• remove conditions currently included in the definitions of commission protection and deposit insurance; and
• clarify that all registrants are required to participate in the group insurance.
The ministry welcomes feedback and encourages anyone interested to provide comments on the proposal. Interested parties can respond by e-mail or mail.
Further Information:
O. Reg. 579/05
Draft regulation
Proposal Number:
16-MGCS008
Posting Date:
October 24, 2016
Comments Due Date:
November 23, 2016
Contact Address:
56 Wellesley Street, 6th floor
Policy Branch
Toronto, Ontario
M7A 1C1
Attention: REBBA Insurance Changes
rebbainsurance@ontario.ca
Policy Branch
Toronto, Ontario
M7A 1C1
Attention: REBBA Insurance Changes
rebbainsurance@ontario.ca