Regulation - LGIC
Proposed regulatory amendments under the Insurance Act with respect to O. Reg. 7/00 (Unfair or Deceptive Acts or Practices).
Regulation Number(s):
7/00 (Unfair or Deceptive Acts or Practices)
Instrument Type:
Regulation - LGIC
Bill or Act:
Insurance Act
Summary of Proposal:
The Financial Services Regulatory Authority of Ontario (FSRA) is exercising rule-making authority given to it under various sector statutes, including the Insurance Act and Financial Services Regulatory Authority of Ontario Act (FSRA Act), to replace the existing O. Reg 7/00 (Unfair or Deceptive Acts or Practices) Regulation with a Unfair or Deceptive Acts or Practices (UDAP) Rule.
The FSRA Act sets out requirements FSRA must follow when developing rules. For a rule to become effective, FSRA must deliver the proposed rule to the Minister of Finance, who may approve the rule, reject the rule, or return it to FSRA for further consideration.
Pending the Minister of Finance's approval of the UDAP Rule, the following regulatory amendments under the Insurance Act would be required:
- Revoke O. Reg 7/00 (Unfair or Deceptive Acts or Practices).
- Consequential amendments to O. Reg 408/12 (Administrative Penalties); and
- Consequential amendments to O. Reg 704/21 (Exemption Orders Under Section 15.1 of the Act).
The intent of these Insurance Act amendments is to support the transition of existing regulatory provisions, and enable the implementation of the UDAP Rule.
The Ministry of Finance is requesting comments regarding the proposed amendments.
Consultation drafts of the proposed regulatory amendments under the Insurance Act with respect to the transition of the UDAP Regulation to a UDAP Rule are attached.
The FSRA Act sets out requirements FSRA must follow when developing rules. For a rule to become effective, FSRA must deliver the proposed rule to the Minister of Finance, who may approve the rule, reject the rule, or return it to FSRA for further consideration.
Pending the Minister of Finance's approval of the UDAP Rule, the following regulatory amendments under the Insurance Act would be required:
- Revoke O. Reg 7/00 (Unfair or Deceptive Acts or Practices).
- Consequential amendments to O. Reg 408/12 (Administrative Penalties); and
- Consequential amendments to O. Reg 704/21 (Exemption Orders Under Section 15.1 of the Act).
The intent of these Insurance Act amendments is to support the transition of existing regulatory provisions, and enable the implementation of the UDAP Rule.
The Ministry of Finance is requesting comments regarding the proposed amendments.
Consultation drafts of the proposed regulatory amendments under the Insurance Act with respect to the transition of the UDAP Regulation to a UDAP Rule are attached.
Analysis of Regulatory Impact:
The proposed regulatory amendments under the Insurance Act with respect to the UDAP Regulation 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.
Further Information:
Insurance Act Regulation (Unfair or Deceptive Acts or Practices) - Consultation Draft
Insurance Act Regulation (Administrative Penalties) - Consultation Draft
Insurance Act Regulation (Exemption Orders) - Consultation Draft
Proposal Number:
22-MOF001
Posting Date:
January 26, 2022
Comments Due Date:
February 10, 2022
Contact Address:
Auto 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