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Bill 12, Ending Automobile Insurance Discrimination in the Greater Toronto Area Act, 2022

Rakocevic, Tom

Begum, Doly

Stiles, Marit

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Status

Debates

Acts affected

Original

Bill 12 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 12 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

August 25, 2022

First Reading

Ordered for Second Reading

August 25, 2022

First Reading

Vote

Carried

First Reading

August 25, 2022

Carried