Bill 108 2012

An Act to amend the Insurance Act to ban the use of credit history and ratings in respect of homeowners and other personal property insurance

Note: This Act amends the Insurance Act.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

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

   1.  (1)  Section 438 of the Insurance Act is amended by adding the following definition:

"personal property insurance" means homeowners insurance, condominium insurance and tenant insurance; ("assurance de biens meubles")

   (2)  The definition of "unfair or deceptive acts or practices" in section 438 of the Act is amended by adding "or that is set out in section 439.1" at the end.

   (3)  Section 438 of the Act is amended by adding the following subsection:

Regulations

   (2)  For the purposes of the definition of "personal property insurance" in subsection (1), the Lieutenant Governor in Council may make regulations defining "homeowners insurance", "condominium insurance" and "tenant insurance".

   2.  The Act is amended by adding the following section:

Application of section, personal property insurance

   439.1  (1)  This section applies to insurers engaged in the business of personal property insurance.

Prohibited practices, same

   (2)  No insurer shall engage in any of the following unfair or deceptive acts or practices in respect of personal property insurance:

    1.  Declining to issue, terminating or refusing to renew a contract or refusing to provide or continue any coverage or endorsement in respect of a contract on any of the grounds listed in subsection (3).

    2.  Using any of the grounds listed in subsection (3) for the purpose of classifying risks in the determination of rates for a coverage or category of insurance.

Grounds referred to in subs. (2)

   (3)  The grounds referred to in paragraphs 1 and 2 of subsection (2) are the following:

    1.  The credit history of a person who would be an insured person under the contract.

    2.  The credit rating of a person who would be an insured person under the contract.

Commencement

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

Short title

   4.  The short title of this Act is the Homeowners Insurance Credit Scoring Ban Act, 2012.

EXPLANATORY NOTE

The Bill prohibits insurers from using, in respect of personal property insurance, a person's credit history or rating as grounds for the following:

    1.   Declining to issue, terminating or refusing to renew a contract or refusing to provide or continue any coverage or endorsement in respect of a contract.

    2.   Classifying risks in the determination of rates for a coverage or category of insurance.