Bill 129, Automobile Insurance Rates Control Act, 2003

Versions

Bill 129 2003

An Act to control
automobile insurance rates

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1. In this Act,

"automobile insurance" has the same meaning as in section 1 of the Insurance Act; ("assurance-automobile")

"capped rate" means, in respect of a coverage under a contract of automobile insurance, the lesser of,

(a) the premium that would have been charged for the coverage for comparable risks for a term commencing on June 19, 2003 had the premium been calculated using the rules, procedures and factors used by the insurer on that date,

(b) the premium that would have been charged for the coverage for comparable risks using the Facility Association rate in effect at the beginning of the term of the contract; ("taux plafonné")

"Facility Association rate" means the premium for a coverage determined under the Plan of Operation of the Facility Association under the Compulsory Automobile Insurance Act; ("taux de l'Association des assureurs")

"insurer" means an insurer licensed under the Insurance Act and carrying on the business of automobile insurance, but does not include an insurer whose licence is limited to contracts of reinsurance. ("assureur")

Rates capped

2. (1) No insurer shall charge a premium for automobile insurance that exceeds the capped rate.

Same

(2) The Facility Association shall not increase the Facility Association rate in respect of any coverage.

Offence

3. Every person who contravenes or fails to comply with this Act is guilty of an offence and on conviction is liable to a fine of $25,000.

Repeal

4. This Act is repealed on the earlier of,

(a) June 15, 2004; or

(b) a day to be named by proclamation of the Lieutenant Governor.

Commencement

5. This Act shall be deemed to have come into force on June 19, 2003.

Short title

6. The short title of this Act is the Automobile Insurance Rates Control Act, 2003.

EXPLANATORY NOTE

The Bill caps automobile insurance rates as of June 19, 2003.