Regulation - LGIC
Regulation 991 Amendments
Regulation Number(s):
Instrument Type:
Regulation - LGIC
Bill or Act:
Registered Insurance Brokers Act
Summary of Decision:
The amendments would:
o Impose a statutory duty on RIBO members to cooperate with investigations;
o Require principal brokers to report suspected acts of misconduct by members in their firm;
o Increase the maximum fine for misconduct from $5,000 to $25,000 for an insurance broker, and from $25,000 to $100,000 for a brokerage;
o Make it an act of misconduct for a RIBO member to fail to comply with RIBO's by-laws;
o Require brokers to have minimum errors and omissions insurance of $3,000,000 to pay consumers' losses arising from brokers errors or omissions, up from the $1,000,000 minimum currently required;
o Make any finding of incompetence or professional misconduct or a finding of a similar nature against a RIBO member by the governing authority of the profession in a jurisdiction other than Ontario, a finding of incompetence or misconduct for purposes of RIBO discipline; and
o Revoke the supervisory obligation of a principal broker (the obligation is in a by-law, so that would eliminate duplication).
o Impose a statutory duty on RIBO members to cooperate with investigations;
o Require principal brokers to report suspected acts of misconduct by members in their firm;
o Increase the maximum fine for misconduct from $5,000 to $25,000 for an insurance broker, and from $25,000 to $100,000 for a brokerage;
o Make it an act of misconduct for a RIBO member to fail to comply with RIBO's by-laws;
o Require brokers to have minimum errors and omissions insurance of $3,000,000 to pay consumers' losses arising from brokers errors or omissions, up from the $1,000,000 minimum currently required;
o Make any finding of incompetence or professional misconduct or a finding of a similar nature against a RIBO member by the governing authority of the profession in a jurisdiction other than Ontario, a finding of incompetence or misconduct for purposes of RIBO discipline; and
o Revoke the supervisory obligation of a principal broker (the obligation is in a by-law, so that would eliminate duplication).
Analysis of Regulatory Impact:
The proposal imposes no administrative costs for business.
Further Information:
Amendments to O. Reg. 991
Proposal Number:
18-MOF006
Posting Date:
February 9, 2018
Summary of Proposal:
The regulatory amendments are intended to:
• Help deter insurance broker behaviour that is detrimental to consumers by increasing the maximum fines for misconduct;
• Provide better financial protection for Registered Insurance Brokers of Ontario (RIBO) members and consumers by increasing the minimum limit for errors and omissions insurance, and improve RIBO's ability to learn about and investigate misconduct.
Specifically, the amendements would:
o Impose a statutory duty on RIBO members to cooperate with investigations;
o Require principal brokers to report suspected acts of misconduct by members in their firm;
o Increase the maximum fine for misconduct from $5,000 to $25,000 for an insurance broker, and from $25,000 to $100,000 for a brokerage;
o Make it an act of misconduct for a RIBO member to fail to comply with RIBO's by-laws;
o Require brokers to have minimum errors and omissions insurance of $3,000,000 to pay consumers' losses arising from brokers errors or omissions, up from the $1,000,000 minimum currently required;
o Make any finding of incompetence or professional misconduct or a finding of a similar nature against a RIBO member by the governing authority of the profession in a jurisdiction other than Ontario, a finding of incompetence or misconduct for purposes of RIBO discipline; and
o Revoke the supervisory obligation of a principal broker (the obligation is in a by-law, so that would eliminate duplication).
• Help deter insurance broker behaviour that is detrimental to consumers by increasing the maximum fines for misconduct;
• Provide better financial protection for Registered Insurance Brokers of Ontario (RIBO) members and consumers by increasing the minimum limit for errors and omissions insurance, and improve RIBO's ability to learn about and investigate misconduct.
Specifically, the amendements would:
o Impose a statutory duty on RIBO members to cooperate with investigations;
o Require principal brokers to report suspected acts of misconduct by members in their firm;
o Increase the maximum fine for misconduct from $5,000 to $25,000 for an insurance broker, and from $25,000 to $100,000 for a brokerage;
o Make it an act of misconduct for a RIBO member to fail to comply with RIBO's by-laws;
o Require brokers to have minimum errors and omissions insurance of $3,000,000 to pay consumers' losses arising from brokers errors or omissions, up from the $1,000,000 minimum currently required;
o Make any finding of incompetence or professional misconduct or a finding of a similar nature against a RIBO member by the governing authority of the profession in a jurisdiction other than Ontario, a finding of incompetence or misconduct for purposes of RIBO discipline; and
o Revoke the supervisory obligation of a principal broker (the obligation is in a by-law, so that would eliminate duplication).
Contact Address:
Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor
Toronto, ON
M7A 1Z1
Effective Date:
July 1, 2018
Decision:
Approved