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Bill 103, Ending Automobile Insurance Discrimination in the Greater Toronto Area Act, 2022

Singh, Gurratan

Hassan, Faisal

Rakocevic, Tom

Yarde, Kevin

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Status

Debates

Acts affected

Original

Bill 103 Original (PDF)

EXPLANATORY

NOTE

The

Bill amends the Insurance Act in order to prevent

residents of the Greater Toronto Area from paying different rates for

automobile insurance based solely on the municipality or area in which they

reside in the Greater Toronto Area.

Amendments

require the Chief

Executive Officer of the Financial Services Regulatory Authority of Ontario to

refuse to approve a risk classification system used in determining the rates

for each coverage and category of automobile insurance if the system considers

the geographic region as a determinant and fails to consider the Greater

Toronto Area as a single geographic area. The amendments also prohibit insurers

from entering into contracts of insurance that provide for insurance rates that

were determined based on such a risk classification system.

Bill 103 2022

Act to amend the Insurance Act to prevent discrimination with respect to automobile

insurance rates in the Greater Toronto Area

Preamble

Ontarians

pay the highest automobile insurance rates in Canada, and some pay more for

automobile insurance premiums than they pay in connection with the mortgage on

their home. Automobile insurance premiums continue to increase for families

across Ontario. Postal code discrimination in the Greater Toronto Area is the

reason too many Ontarians pay exorbitantly high automobile insurance premiums.

Successive governments have failed to tackle skyrocketing automobile insurance

rates. The people of Ontario believe that postal code discrimination needs to

end.

Therefore,

Her Majesty, by and with the advice and consent of the Legislative Assembly of

the Province of Ontario, enacts as follows:

The Insurance Act is amended by adding the

following section:

Refusal,

certain risk classification systems

410.1

(1) The Chief

Executive Officer shall refuse to approve an application made by an insurer

under

section 410 if,

(

a) the

risk classification system that the insurer intends to use in determining the

rates for each coverage and category of automobile insurance,

(

i) considers

the geographic region in which a person resides as an element in classifying

risks for a coverage or category of automobile insurance, and

(ii) fails

to consider the Greater Toronto Area as a single geographic area but rather

considers municipalities or other areas within the Greater Toronto Area as

separate geographic areas for purposes of classifying risk for a coverage or

category of automobile insurance; and

(

b) as

a result of differentiating between the various municipalities and areas within

the Greater Toronto Area, the risk classification system would allow for a rate

for a particular coverage or category of automobile insurance in one

municipality or area within the Greater Toronto Area that differs from the rate

for the same coverage or category in another municipality or area within the

Greater Toronto Area.

Prohibition

against certain automobile insurance contracts

(2) No

insurer shall enter into or renew, or offer to enter into or renew, a contract

for a coverage or category of automobile insurance with a prospective insured

who is a resident in the Greater Toronto Area if,

(

a) the

determination of the rate for the particular coverage or category required

under the contract was based on a risk classification system described in

clause (1) (a); and

(

b) the

rate for the coverage or category required under the contract would be

different if the insured resided in a different municipality or area within the

Greater Toronto Area.

Definition,

Greater Toronto Area

(3) In

this section,

“Greater

Toronto Area” means the geographic area composed of the City of Toronto and the

regional municipalities of Durham, Halton, Peel and York.

Commencement

This Act comes into force on the day it receives Royal Assent.

Short

title

The

short title of this Act is the Ending

Automobile Insurance Discrimination in the Greater Toronto Area Act, 2022 .

Date Bill stage Event Outcome Committee

April 11, 2022

Second Reading

Ordered referred to Standing Committee

Standing Committee on Regulations and Private Bills

April 11, 2022

Second Reading

Vote

Carried on division

April 7, 2022

Second Reading

Deferred vote

April 7, 2022

Second Reading

Debated

March 22, 2022

First Reading

Vote

Carried

Debates and Progress

First Reading

March 22, 2022

Committee

Second Reading

April 7, 2022

Mr. Kevin Yarde, Mr. Will Bouma, Mr. Faisal Hassan, Hon. Stephen Lecce, Mr. Tom Rakocevic, Ms. Sara Singh, Mr. Gurratan Singh

Vote deferred.

April 11, 2022

Carried on division. Referred to the Standing Committee on Regulations and Private Bills.

Committee

Standing Committee on Regulations and Private Bills

Third Reading

Royal Assent

Acts affected - Bill 103

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Insurance Act

Legislative Assembly of Ontario

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