Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 Sousa, Hon. Charles Minister of Finance — Bill 171 (40th Parliament, 2nd Session)

Bill 171, 40-2

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Bill 171, Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014

Sousa, Hon. Charles Minister of Finance

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[40] Bill 171 Original (PDF)

Bill 171 2014

Act respecting insurance system reforms and repair and storage liens

Her

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

Province of Ontario, enacts as follows:

Insurance

Act

1. The

definition of "Director" in

section 1 of the Insurance Act

is repealed.

Section

6 of the Act is repealed.

3. Subsection

7 (4) of the Act is repealed.

Section

8 of the Act is repealed.

Section

9 of the Act is repealed.

Section

11 of the Act is repealed and the following substituted:

Evidence

of persons who conducted certain proceedings

(1) A

person who conducted a proceeding described in subsection (2) shall not be

required to testify in a civil proceeding or in a proceeding before any

tribunal respecting the proceeding described in subsection (2) or respecting

information obtained in the discharge of the person's duties under this Act.

Proceedings

(2) The proceedings referred to in

subsection (1) are mediations, evaluations and arbitrations under sections 279

to 287, as those sections read immediately before being repealed by

section 14

of the Fighting Fraud and Reducing Automobile Insurance

Rates Act, 2014 .

7. Subsection

20 (1) of the Act is repealed and the following substituted:

Exclusive

jurisdiction

(1) This

section applies with respect to

proceedings under this Act before the Tribunal or the Superintendent.

Section

21 of the Act is repealed.

Section

22 of the Act is repealed.

10. Clause

25 (2) (

g) of the Act is repealed and the following substituted:

(

g) stating

whether a document or notification was received or issued by the

Superintendent.

(1) Paragraph

25 of subsection 121 (1) of the Act is repealed.

(2) Paragraph 25.2 of subsection 121 (1) of

the Act is repealed and the following substituted:

25.2 governing the

assignment of statutory accident benefits under

Part VI, including the

application of sections 279 to 282 to persons to whom the benefits are

assigned;

(3) Paragraph 26 of subsection 121 (1) of

the Act is repealed and the following substituted:

26. governing

proceedings before the Licence Appeal Tribunal under

section 280, including

imposing time limits or limitation periods;

(4) Paragraph 27 of subsection 121 (1) of

the Act is repealed.

(5) Paragraph 28.1 of subsection 121 (1) of

the Act is amended by striking out "section 393 and sections 397 to 401 or from

any provision of those sections" and substituting "subsection 392.2 (6) or 397

(7) or

section 401".

(6) Paragraph 28.3 of subsection 121 (1) of

the Act is repealed.

(7) Subsection 121 (1) of the Act is

amended by adding the following paragraph:

37.0.2 governing

assessments under

section 282;

(8) Clause 121 (4) (

b) of the Act is

repealed and the following substituted:

(

b) may prescribe

the burden of proof and standard of proof applicable in a proceeding before the

Licence Appeal Tribunal under

section 280;

Section

258.3 of the Act is amended by adding the following subsection:

Same

(8.1) Subsection 128 (2) of the Courts of Justice Act does not apply in respect of the

calculation of prejudgment interest for damages for non-pecuniary loss in an

action referred to in subsection (8).

13. Subsection

275 (5) of the Act is repealed and the following substituted:

Stay

of arbitration

(5) No

arbitration hearing shall be held with respect to indemnification under this

section if, in respect of the incident for which indemnification is

sought, any of the insurers and an insured are parties to a proceeding before the

Licence Appeal Tribunal under

section 280 or to an appeal from such a

proceeding.

14. Sections

279 to 288 of the Act are repealed and the following substituted:

Definitions

279. For the purposes of

sections 280 to 283,

"insured

person" includes a person who is claiming funeral expenses or a death benefit

under the Statutory Accident Benefits

Schedule ; (" personne

assurée ")

"Licence Appeal Tribunal" means the Licence Appeal

Tribunal established under the Licence Appeal Tribunal

Act, 1999 . ("Tribunal d'appel en matière de permis")

Resolution

of disputes

(1) This

section applies with respect to the resolution of disputes in respect of an

insured person's entitlement to statutory accident benefits or in respect of

the amount of statutory accident benefits to which an insured person is

entitled.

Application

to Tribunal

(2) The insured person or the insurer may

apply to the Licence Appeal Tribunal to resolve a dispute described in

subsection (1).

Limit

on court proceedings

(3) No person may bring a proceeding in any

court with respect to a dispute described in subsection (1), other than an

appeal from a decision of the Licence Appeal Tribunal or an application for

judicial review.

Resolution

in accordance with

Schedule

(4) The dispute shall be resolved in

accordance with the Statutory Accident Benefits

Schedule .

Orders,

powers and duties

(5) The regulations may provide for and

govern the orders and interim orders that the Licence Appeal Tribunal may make

and may provide for and govern the powers and duties that the Licence Appeal Tribunal

shall have for the purposes of conducting the proceeding.

Orders

for costs, other amounts

(6) Without limiting what else the

regulations may provide for and govern, the regulations may provide for and

govern the following:

1. Orders,

including interim orders, to pay costs, including orders requiring a person

representing a party to pay costs personally.

2. Orders,

including interim orders, to pay amounts even if those amounts are not costs or

amounts to which a party is entitled under the Statutory

Accident Benefits

Schedule .

Protection

of benefits after Tribunal resolution

281 .

(1) After

the Licence Appeal Tribunal issues a decision, the insurer shall not reduce

benefits to the insured person on the basis of an alleged change of

circumstances, alleged new evidence or an alleged error except as provided

under this section.

When

benefits may be reduced

(2) The insurer may reduce benefits if,

(

a) the

insured person agrees;

(

b) the

insurer is authorized to do so as a result of a successful appeal of the

Licence Appeal Tribunal's decision; or

(

c) the

insurer is authorized to do so by the Licence Appeal Tribunal.

Assessment

of dispute resolution costs

(1) The

Lieutenant Governor in Council may, in accordance with the regulations, assess all

insurers that have issued motor vehicle liability policies in Ontario for expenses

and expenditures of the Licence Appeal Tribunal relating to

disputes described in subsection 280 (1).

Same

(2) If

an assessment is made under subsection (1), the share of a particular insurer

shall be determined in the manner prescribed by regulation, which may take into

account the

degree of usage made of the Licence Appeal Tribunal that is specified in the

regulations .

Same,

fees received

(3) In

setting an assessment under subsection (1), the Lieutenant Governor in Council

shall take into account the fees received from insurers and insured persons in

respect of disputes described in subsection 280 (1).

Insurer's

duty to pay

(4) An

insurer shall pay the amount assessed against it.

Same

(5) If

an insurer fails to pay an assessment made under subsection (1), the

Superintendent may suspend or cancel the insurer's licence.

Same

(6) The

Superintendent may revive the licence of an insurer whose licence was suspended

or cancelled under subsection (5) if the insurer pays all amounts owing by the

insurer under this section.

Transition

- regulations

(1) The

Lieutenant Governor in Council may make regulations,

(

a) providing for transitional

matters in connection with the resolution of disputes described in subsection (2);

(

b) governing when a

dispute arises and when it is finally determined for the purposes of clause (2)

(a);

(

c) providing

for transitional matters in connection with the coming into force of the

following provisions of the Fighting Fraud and Reducing

Automobile Insurance Rates Act, 2014 :

(

i) Sections

1 to 10, subsections 11 (1) to (4) and (6) to (8) and sections 13 and 14, which

amend this Act.

(ii) Sections

24 to 27, which amend the Financial Services

Commission of Ontario Act, 1997 .

(iii)

Section

30, which amends the Motor Vehicle

Accident Claims Act .

Unresolved

prior disputes

(2) The disputes referred to in clause (1)

(

a) are disputes that,

(

a) arise

before the transition date but are not finally determined before that date; and

(

b) are

in respect of an insured person's entitlement to statutory accident benefits or

in respect of the amount of statutory accident benefits to which the insured

person is entitled.

Regulations

relating to disputes

(3) Without limiting what regulations may

be made under clause (1) (a), the regulations under that clause may,

(

a) provide

that sections 279 to 282 do not apply or apply with such modifications as the

regulations may specify;

(

b) provide

that sections 279 to 287 as those sections read immediately before being

repealed by

section 14 of the Fighting Fraud and Reducing

Automobile Insurance Rates Act, 2014 apply with such modifications as

the regulations may specify;

(

c) provide

for other provisions of this Act, as those provisions read immediately before

being amended or repealed by a provision of the Fighting

Fraud and Reducing Automobile Insurance Rates Act, 2014 , to apply with

such modifications as the regulations may specify;

(

d) provide for the continuation of,

(

i) the

office of the director of arbitrations appointed under

section 6 as that

section read immediately before being repealed by

section 2 of the Fighting Fraud and Reducing Automobile Insurance Rates Act, 2014 ,

(ii) arbitrators

appointed under

section 8 as that

section read immediately before being

repealed by

section 4 of the Fighting Fraud and Reducing

Automobile Insurance Rates Act, 2014 , and

(iii) mediators

appointed under

section 9 as that

section read immediately before being

repealed by

section 5 of the Fighting Fraud and Reducing

Automobile Insurance Rates Act, 2014 ;

(

e) provide

for the continuation of the powers and duties that any of the officials

referred to in clause (

d) had before the transition date to be exercised by the

officials continued by regulations made under clause (

d) or to be exercised by

other persons or bodies specified in the regulations.

Other

regulations

(4) Without limiting what regulations may

be made under clause (1) (c), the regulations under that clause may,

(

a) if the regulations made under clause (1) (

a) provide for

the continuation of the office of the director of arbitrations appointed

under

section 6 as that

section read immediately before being repealed by

section

2 of the Fighting Fraud and Reducing Automobile Insurance

Rates Act, 2014 , provide for that official to continue to be a member of

the Financial Services Commission of Ontario, despite subsection 2 (2) of the Financial Services Commission of Ontario Act, 1997 ;

(

b) govern

how

section 25 of the Financial Services

Commission of Ontario Act, 1997 applies in respect of

assessments that cover expenses and expenditures relating to disputes described

in subsection (2);

(

c) modify

the application of clause 6 (2) (

b) of the Motor Vehicle

Accident Claims Act with respect to disputes described in subsection

(2).

Transition

date

(5) In this section,

"transition date" means the date on which this

section

(as re-enacted by

section 14 of the Fighting Fraud and Reducing

Automobile Insurance Rates Act,

Document details

Collection	Ontario — Bills
Citation	Bill 171, 40-2
Type	bill
Volume / chapter	p40 s2 bill 171 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	680656bc8fc1f282ce8f693883526c0394538b7c

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