Amendments to regulations made under the Insurance Act and the Compulsory Automobile Insurance Act regarding the delivery and electronic format of certain records and other documents.
Regulation 777/93 (Statutory Conditions – Automobile Insurance) under the Insurance Act.
Regulation 676 (Uninsured Automobile Coverage) under the Insurance Act.
Regulation 283/95 (Disputes Between Insurers) under the Insurance Act.
Regulation 347/04 (Agents) under the Insurance Act.
Regulation 95 (Exemptions) under the Compulsory Automobile Insurance Act.
Regulation - LGIC
Bill or Act:
Insurance Act; Compulsory Automobile Insurance Act
Summary of Proposal:
As part of the Putting Drivers First Blueprint announced in the 2019 Ontario Budget, the government committed to facilitate electronic communications that will make it faster and simpler for people and insurance companies to do business. This initiative is part of a broader government commitment to make the auto insurance system more accessible and affordable for the people of Ontario.
This includes clarifying that insurance companies can use electronic communications and e-commerce, except for policy terminations, when interacting with their customers.
If the proposed changes are approved, consumers can still choose to continue using paper communications. This proposal does not make electronic communication the default communication method, and insurance companies do not have the power to require consumers to receive documents or communicate electronically.
The Protecting What Matters Most Act (Budget Measures), 2019 ("the Budget Bill") included legislative amendments to the Compulsory Automobile Insurance Act and the Insurance Act ("the Acts") relating to the delivery and electronic format of certain records and other documents.
The Budget Bill received Royal Assent on May 29, 2019.
The Budget Bill amendments are proposed to be proclaimed into force shortly after the required regulation amendments, if approved, are filed.
Amendments to regulations made under the Acts are now required to reflect the amendments included in the Budget Bill, including:
Permitting the delivery of certain documents by prepaid courier, in addition to personal delivery or delivery by registered mail as currently permitted.
Permitting a regulated health professional, who receives certain claims-related documents, to provide a copy of those documents to the insured person in electronic format (current requirement is by "ordinary mail or fax").
In addition, amendments are proposed to regulations under the Insurance Act to remove references to "fax" and "facsimile".
The Ministry of Finance is seeking public input on these proposed regulation amendments.
Consultation drafts of these proposed regulation amendments are attached.
Analysis of Regulatory Impact:
The proposed regulation amendments regarding the optional delivery and electronic format of certain records and other documents in the insurance sector will make it faster and simpler for people and insurance companies to do business, and will contribute to the government's burden reduction commitments.
The proposed amendments would not increase compliance costs on businesses and key business sectors, and would have no impact on the Broader Public Service or non-profit sectors. There is no cost to government as a result of this proposal.
September 27, 2019
Comments Due Date:
November 12, 2019
Auto Insurance Policy Unit
Financial Institutions Policy Branch
Ministry of Finance
95 Grosvenor Street
Frost Building North, 4th Floor