Compulsory Automobile Insurance Act

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Sections48

• 1Definitions

  1 (1) In this Act, “agent” means an agent or broker within the meaning of the Insurance Act who is authorized to solicit automobile insurance; (“agent”) “Association” means the Facility Association referred to in subsection 7 (1); (“Association”) “Authority” means the Financial Services Regulatory Authority of Ontario continued under subsection 2 (1) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“Autorité”) “automobile insurance” means insurance against liability arising out of bodily injury to or the death of a person or loss of or damage to property caused by a motor vehicle or the use or operation thereof, and which, (a) insures at least to the limit required by section 251 of the Insurance Act, (b) provides the statutory accident benefits set out in the Statutory Accident Benefits Schedule under the Insurance Act, and (c) provides the benefits prescribed under…

• 1.
• 2Compulsory automobile insurance

  2 (1) Subject to the regulations, no owner or lessee of a motor vehicle shall, (a) operate the motor vehicle; or (b) cause or permit the motor vehicle to be operated,

• 2.
• [s2]

  on a highway unless the motor vehicle is insured under a contract of automobile insurance. 1994, c. 11, s. 383; 1996, c. 21, s. 50 (3). Definition (2) For the purposes of subsection (1), where a permit for a motor vehicle has been issued under subsection 7 (7) of the Highway Traffic Act, “contract of automobile insurance”, with respect to that motor vehicle, means a contract of automobile insurance made with an insurer. R.S.O. 1990, c. C.25, s. 2 (2). Offence (3) Every owner or lessee of a motor vehicle who, (a) contravenes subsection (1) of this section or subsection 13 (11); or (b) surrenders an insurance card for inspection to a police officer, when requested to do so, purporting to show that the motor vehicle is insured under a contract of automobile insurance when the motor vehicle is not so insured, is guilty of an offence and is liable on a first conviction to a fine of not less t…

• 3.
• 3Operator to carry insurance card

  3 (1) An operator of a motor vehicle on a highway shall have in the motor vehicle at all times, (a) an insurance card for the motor vehicle; or (b) an insurance card evidencing that the operator is insured under a contract of automobile insurance,

• 4.
• [s4]

  and the operator shall surrender the insurance card for reasonable inspection upon the demand of a police officer. R.S.O. 1990, c. C.25, s. 3 (1). Excluded driver to carry insurance card (2) Despite subsection (1), an operator of a motor vehicle who is named as an excluded driver under the contract of automobile insurance under which the vehicle is insured shall have in the vehicle at all times an insurance card evidencing that the operator is a named insured under another contract of automobile insurance, and the operator shall surrender the insurance card for reasonable inspection upon the demand of a police officer. R.S.O. 1990, c. C.25, s. 3 (2). Offence (3) A person who contravenes this section is guilty of an offence and on conviction is liable to a fine of not more than $400. R.S.O. 1990, c. C.25, s. 3 (3); 1996, c. 21, s. 50 (7). Section Amendments with date in force (d/m/y) 1996…

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• 4Particulars to be disclosed

  4 (1) An operator of a motor vehicle on a highway who is directly or indirectly involved in an accident shall, on the request of any person directly or indirectly involved in the accident, disclose to the person the particulars of the contract of automobile insurance insuring the motor vehicle. R.S.O. 1990, c. C.25, s. 4 (1). Definition (2) For the purposes of subsection (1), “particulars of the contract of automobile insurance” means, (a) the name and address of the insured, (b) the make, model and serial number of the insured vehicle, (c) the effective date and expiry date of the contract, (d) the name of the insurer, (e) the name of the insurer’s agent, if any, and (f) the policy number of the contract. R.S.O. 1990, c. C.25, s. 4 (2). Offence (3) A person who contravenes subsection (1) is guilty of an offence and on conviction is liable to a fine of not more than $400. 1993, c. 10, s.…

• 6.
• 5Obligations of agents

  5 An agent shall, (a) provide to an owner or lessee of a motor vehicle who is a resident of Ontario an application for automobile insurance; and (b) submit to an insurer a completed application for automobile insurance,

• 7.
• [s7]

  when requested to do so by the owner or lessee of a motor vehicle. R.S.O. 1990, c. C.25, s. 5; 1996, c. 21, s. 50 (9). Section Amendments with date in force (d/m/y) 1996, c. 21, s. 50 (9) - 01/11/1996

• 8.
• 6Insurance card to be issued

  6 (1) An insurer shall issue, or cause its agent to issue, an insurance card to a person with whom a contract of automobile insurance is made or whose contract of automobile insurance is renewed. R.S.O. 1990, c. C.25, s. 6 (1). Misrepresentations (2) No insurer or its agent shall, on an insurance card, specify an effective date earlier than the date on which the contract of automobile insurance was actually made or misrepresent in any other way the particulars of the automobile insurance. R.S.O. 1990, c. C.25, s. 6 (2).

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• 7Facility Association continued

  7 (1) The unincorporated non-profit association of insurers known as the Facility Association is continued under the name Facility Association in English and under the name Association des assureurs in French. R.S.O. 1990, c. C.25, s. 7 (1). Membership (2) Every insurer is a member of the Association. 1993, c. 10, s. 52 (3). The Plan (3) The Association shall, in its articles of association, establish a plan, to be known as the Plan of Operation, for providing a contract of automobile insurance to owners, lessees and licensed drivers of motor vehicles who, but for the Plan, would be unable to obtain such insurance. R.S.O. 1990, c. C.25, s. 7 (3); 1996, c. 21, s. 50 (10). Compliance with Plan, etc. (3.1) Every member of the Association shall comply with the Plan and the articles of association, by-laws, rules and resolutions of the Association. 1993, c. 10, s. 52 (4). Duty of Association …

• 11.
• 8Board of directors

  8 (1) The affairs of the Association shall be administered by a board of directors established in accordance with its articles of association. R.S.O. 1990, c. C.25, s. 8 (1). Information to be provided to Chief Executive Officer (2) The Association shall notify the Chief Executive Officer of the names and residence addresses of the persons elected or appointed as officers and directors of the Association forthwith after such election or appointment, and such names and addresses may be made available to the public by the Chief Executive Officer. R.S.O. 1990, c. C.25, s. 8 (2); 1997, c. 28, s. 29; 2018, c. 8, Sched. 4, s. 3. Service on Association (3) Service on the directors or officers of the Association, or any of them, is good and sufficient service on the Association, and such service may be by personal service or by registered mail. R.S.O. 1990, c. C.25, s. 8 (3). Note: On a day to b…

• 9By-laws

  9 (1) The Association may pass by-laws relating to its affairs and not inconsistent with this Act or the regulations, (a) providing for the execution of documents by the Association; (b) respecting banking and finance; (c) fixing the financial year of the Association and providing for the audit of the accounts and transactions of the Association; (d) providing for the appointment and remuneration of officers and employees of the Association; (e) respecting the calling, holding and conducting of meetings of the Association and the duties of members of the Association; (f) delegating to an operating committee such powers and duties of the board of directors as are set out in the by-law, other than the power to make, amend or revoke by-laws; (g) prescribing forms and providing for their use; (h) respecting management of the property of the Association; (i) respecting the application of the …

• 10Filing of by-laws and amendments

  10 (1) The Association shall file with the Chief Executive Officer every by-law and every amendment, revision or consolidation of the Plan or of the articles of association, by-laws, rules or resolutions of the Association at least thirty days before the effective date of the by-law or of the amendment, revision or consolidation. 1993, c. 10, s. 52 (7); 1997, c. 28, s. 29; 2018, c. 8, Sched. 4, s. 3. Approval of Chief Executive Officer (2) No by-law and no amendment, revision or consolidation of the Plan or of the articles of association, by-laws, rules or resolutions of the Association shall come into effect unless it is approved by the Chief Executive Officer. 1993, c. 10, s. 52 (7); 1997, c. 28, s. 29; 2018, c. 8, Sched. 4, s. 3. Rates (3) The Association may prepare rates in respect of contracts provided under the Plan. R.S.O. 1990, c. C.25, s. 10 (3). Idem (4) Rates prepared under s…

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• 11Investigatory powers

  11 The Chief Executive Officer has the same powers in respect of the Association that the Chief Executive Officer has in respect of an insurer under sections 442.1, 442.2, 442.3, 443 and 444 of the Insurance Act. 1993, c. 10, s. 52 (8); 1997, c. 28, s. 29; 2014, c. 7, Sched. 6, s. 1; 2018, c. 8, Sched. 4, s. 3. Section Amendments with date in force (d/m/y) 1993, c. 10, s. 52 (8) - 01/01/1994; 1997, c. 28, s. 29 - 01/07/1998 2014, c. 7, Sched. 6, s. 1 - 24/07/2014 2018, c. 8, Sched. 4, s. 3 - 08/06/2019

• 13.
• 11.1Annual report

  11.1 The Chief Executive Officer shall make an annual report to the Minister of Finance on the affairs of the Association and the Minister shall then lay the report before the Assembly if it is in session or, if not, at the next session. 1993, c. 10, s. 52 (8); 1997, c. 28, s. 29; 2018, c. 8, Sched. 4, s. 3. Section Amendments with date in force (d/m/y) 1993, c. 10, s. 52 (8) - 01/01/1994; 1997, c. 28, s. 29 - 01/07/1998 2018, c. 8, Sched. 4, s. 3 - 08/06/2019

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• 12Termination of contracts of insurance

  12 (1) Where a contract of automobile insurance has been in effect for more than sixty days, the insurer may only terminate the contract for one or more of the following reasons: 1. Non-payment of, or any part of, the premium due under the contract or of any charge under any agreement ancillary to the contract. 2. The insured has given false particulars of the described automobile to the prejudice of the insurer. 3. The insured has knowingly misrepresented or failed to disclose in an application for insurance any fact required to be stated therein. 4. For a material change of risk within the meaning of the statutory conditions referred to in section 234 of the Insurance Act. R.S.O. 1990, c. C.25, s. 12 (1); 1993, c. 10, s. 52 (9, 10). Exception (2) Subsection (1) does not apply to, (a) an insurer running off its business, where the insurer has specific approval of the Chief Executive Off…

• 13Validation or transfer of permits

  13 (1) No person shall apply for the issuance, validation or transfer of a permit for a motor vehicle unless the motor vehicle is insured under a contract of automobile insurance. 2002, c. 22, s. 34. Ministry to be satisfied of insurance (2) The Ministry of Transportation shall not issue, validate or transfer a permit for a motor vehicle unless it is satisfied that, at the time that the application for the issuance, validation or transfer is made, the motor vehicle is insured under a contract of automobile insurance. 2002, c. 22, s. 34. Minister may require information (3) The following persons shall, upon the request of the Minister of Transportation, give the Registrar such information as may be prescribed, including personal information, for any purpose related to this Act or any provision of the Highway Traffic Act concerning automobile insurance, subject to such conditions as may be…

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• 13.1Possession, use, sale, etc., of false or invalid insurance card

  13.1 (1) No person shall, (a) have a false or invalid insurance card in his or her possession that he or she knows or ought to know is false or invalid; (b) use a false or invalid insurance card that he or she knows or ought to know is false or invalid; (c) sell, give, deliver or distribute a false or invalid insurance card that he or she knows or ought to know is false or invalid; or (d) produce for inspection any other evidence, that he or she knows or ought to know is false or invalid, that the motor vehicle is insured under a contract of automobile insurance. 2002, c. 22, s. 34. Offence (2) A person who contravenes this section is guilty of an offence and is liable on a first conviction to a fine of not less than $10,000 and not more than $50,000 and on a subsequent conviction to a fine of not less than $20,000 and not more than $100,000. 2002, c. 22, s. 34. Definition (3) In this se…

• 13.2Evidence in certain prosecutions

  13.2 (1) This section applies with respect to prosecutions for offences under sections 2, 13 and 13.1. 2002, c. 22, s. 34. Statutory declaration (2) A statutory declaration by a person who is identified in the declaration as an officer or employee of an insurer is admissible in evidence as proof, in the absence of evidence to the contrary, that the motor vehicle identified in the declaration was or was not insured by the insurer on the date or dates specified in the declaration. 2002, c. 22, s. 34. Section Amendments with date in force (d/m/y) 2002, c. 22, s. 34 - 01/07/2010

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• 14Definition

  14 (1) In this section, “person” includes the Association. 1993, c. 10, s. 52 (11). General penalty (2) Every person who contravenes any provision of this Act or the regulations is guilty of an offence and, except where otherwise provided, on conviction is liable on a first conviction to a fine of not more than $250,000 and on each subsequent conviction to a fine of not more than $500,000. 1993, c. 10, s. 52 (11); 2012, c. 8, Sched. 8, s. 1. Insurers, Association (3) If an insurer or the Association is convicted of an offence under subsection (2), the fine shall not be less than $5,000. 1993, c. 10, s. 52 (11). Directors, officers, etc. (4) Every director, officer or chief agent of an insurer or the Association is guilty of an offence who, (a) caused, authorized, permitted or participated in the insurer or Association committing an offence to which subsection (2) applies; or (b) failed t…

• 14.1Suspension or cancellation of licence

  14.1 (1) In addition to any penalty under this Act, if an insurer contravenes this Act, the Chief Executive Officer may suspend or cancel the insurer’s licence issued under the Insurance Act. 1997, c. 28, s. 32; 2018, c. 8, Sched. 4, s. 3. Hearing (2) If the Chief Executive Officer intends to suspend or cancel the licence of an insurer, the procedure set out in section 58 of the Insurance Act applies to the suspension or cancellation, as the case may be. 1997, c. 28, s. 32; 2018, c. 8, Sched. 4, s. 3. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 32 - 01/07/1998 2018, c. 8, Sched. 4, s. 3 - 08/06/2019

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• 14.2Definitions

  14.2 In sections 14.3 to 14.7 and subsection 15 (3), “person” includes the Association; (“personne”) “requirement established under this Act” means, (a) a requirement imposed by a provision of this Act that is prescribed for the purpose of section 14.4 or 14.5 or by a provision of a regulation that is prescribed for the purpose of either of those sections, (b) a requirement imposed by order, or (c) an obligation assumed by way of undertaking. (“exigence établie en vertu de la présente loi”) 2012, c. 8, Sched. 8, s. 2. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 8, s. 2 - 01/01/2013

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• 14.3Administrative penalties

  14.3 (1) An administrative penalty may be imposed under section 14.4 or 14.5 for either of the following purposes: 1. To promote compliance with the requirements established under this Act. 2. To prevent a person from deriving, directly or indirectly, any economic benefit as a result of contravening or failing to comply with a requirement established under this Act. 2012, c. 8, Sched. 8, s. 2. Same (2) An administrative penalty may be imposed alone or in conjunction with any other regulatory measure provided by this Act, including an order under section 14.1 for the suspension or cancellation of an insurer’s licence. 2012, c. 8, Sched. 8, s. 2. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 8, s. 2 - 01/01/2013

• 14.4General administrative penalties

  14.4 (1) If the Chief Executive Officer is satisfied that a person is contravening or not complying with or has contravened or failed to comply with any of the following, the Chief Executive Officer may, by order, impose an administrative penalty on the person in accordance with this section and the regulations: 1. A provision of this Act or the regulations as may be prescribed. 2. A requirement or obligation described in clause (b) or (c) of the definition of “requirement established under this Act” in section 14.2. 2012, c. 8, Sched. 8, s. 2; 2018, c. 8, Sched. 4, s. 3. Procedure (2) If the Chief Executive Officer proposes to impose an administrative penalty under subsection (1), the procedure set out in section 441.3 of the Insurance Act applies, with necessary modifications. 2012, c. 8, Sched. 8, s. 2; 2018, c. 8, Sched. 4, s. 3. Section Amendments with date in force (d/m/y) 2012, c.…

• 14.5Summary administrative penalties

  14.5 (1) If the Chief Executive Officer is satisfied that a person is contravening or not complying with or has contravened or failed to comply with a provision of this Act or the regulations as may be prescribed, the Chief Executive Officer may, by order, impose an administrative penalty on the person in accordance with this section and the regulations. 2012, c. 8, Sched. 8, s. 2; 2018, c. 8, Sched. 4, s. 3. Procedure (2) The procedure set out in section 441.4 of the Insurance Act applies, with necessary modifications, to the imposition of an administrative penalty under subsection (1). 2012, c. 8, Sched. 8, s. 2. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 8, s. 2 - 01/01/2013 2018, c. 8, Sched. 4, s. 3 - 08/06/2019

• 14.6Maximum administrative penalties

  14.6 (1) An administrative penalty imposed under section 14.4 shall not exceed the following amounts: 1. For a contravention or failure to comply by a person, other than an individual, $200,000 or such lesser amount as may be prescribed for a prescribed requirement established under this Act. 2. For a contravention or failure to comply by an individual, $100,000 or such lesser amount as may be prescribed for a prescribed requirement established under this Act. 2012, c. 8, Sched. 8, s. 2. Same (2) An administrative penalty imposed under section 14.5 shall not exceed $25,000 or such lesser amount as may be prescribed for a prescribed requirement established under this Act. 2012, c. 8, Sched. 8, s. 2. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 8, s. 2 - 01/01/2013

• 14.7Enforcement of administrative penalties

  14.7 Section 441.6 of the Insurance Act applies, with necessary modifications, with respect to the payment and enforcement of administrative penalties imposed under this Act. 2012, c. 8, Sched. 8, s. 2. Section Amendments with date in force (d/m/y) 2012, c. 8, Sched. 8, s. 2 - 01/01/2013

• 15Regulations

  15 (1) The Lieutenant Governor in Council may make regulations, (a) exempting any person or class of persons or vehicle or class of vehicles from this Act or any provision of this Act, subject to such conditions as are set out in the regulations; (b) prescribing identifying markers for all automobiles licensed in Ontario and providing for their use; (c) Repealed: 1997, c. 19, s. 2 (2). (c.1) making amendments to the Plan and to the articles of association, by-laws, rules and resolutions of the Association; (c.2) prescribing persons, classes of persons, insurers, classes of insurers, information and conditions for the purposes of subsection 13 (3). (d) Repealed: 1997, c. 19, s. 2 (3). R.S.O. 1990, c. C.25, s. 15; 1993, c. 10, s. 52 (12); 1996, c. 21, s. 50 (12, 13); 1997, c. 19, s. 2 (2, 3); 2002, c. 22, s. 35. Regulation under cl. (1) (c.1) (2) A regulation shall not be made under clause…

• 15.1Repealed

  15.1 Repealed: 2020, c. 36, Sched. 14, s. 4 (2). Section Amendments with date in force (d/m/y) 2018, c. 8, Sched. 4, s. 2 - 08/06/2019 2020, c. 36, Sched. 14, s. 4 (2) - 08/12/2020

• 16Forms

  16 (1) The Chief Executive Officer may approve forms for the purposes of this Act and the forms may provide for such information to be furnished as the Chief Executive Officer may require. 1997, c. 19, s. 2 (4); 1997, c. 28, s. 33 (2); 2018, c. 8, Sched. 4, s. 3. Electronic forms (2) The Chief Executive Officer may approve an electronic version of a form. 1997, c. 19, s. 2 (4); 1997, c. 28, s. 33 (2); 2018, c. 8, Sched. 4, s. 3. Section Amendments with date in force (d/m/y) 1997, c. 19, s. 2 (4) - 10/10/1997; 1997, c. 28, s. 33 (2) - 01/07/1998 2018, c. 8, Sched. 4, s. 3 - 08/06/2019 ______________