Registered Insurance Brokers Act

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Sections78

• 1Definitions

  1 In this Act, “applicant” means an individual, partnership or corporation that applies for registration under this Act; (“auteur d’une demande”) “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”) “board of inquiry” means a board of inquiry appointed by the Council; (“commission d’enquête”) “certificate” means a certificate issued under this Act; (“certificat”) “Chief Executive Officer” means the Chief Executive Officer appointed under subsection 10 (2) of the Financial Services Regulatory Authority of Ontario Act, 2016; (“directeur général”) “Complaints Committee” means the Complaints Committee of the Council established under this Act; (“comité des plaintes”) “contract” has the same meaning as in the Insurance Act, but does not include a contract of l…

• 1.
• 2Prohibition re file

  2 (1) No person shall act as an insurance broker unless the person is a registered insurance broker under this Act. R.S.O. 1990, c. R.19, s. 2 (1). Exceptions (2) Subsection (1) does not apply to, (a) lawyers, accountants or actuaries acting in their professional capacity; (b) an insurance agent licensed under the Insurance Act, while acting within the authority of his or her licence; (c) an insurance adjuster licensed under the Insurance Act, while acting within the authority of his or her licence; (d) any individual, partnership or corporation who acts solely as a reinsurance broker; (e) a person registered under the Travel Industry Act, 2002, acting in respect of travel accident and sickness, baggage or trip cancellation insurance; (f) an employee of a person registered under this Act when the employee is acting for or on behalf of his or her employer engaged solely in the performance…

• 2.
• 3Prohibition re title

  3 (1) No person shall hold himself, herself or itself out as an insurance broker or as the holder of a certificate under this Act unless the person is the holder of a certificate under this Act. Use of title (2) No person shall use the title “registered insurance broker” or “courtiers d’assurances inscrit” or the designation “R.I.B. (Ont.)” or “C.A.I. (Ont.)” or other designation representing or similar to the title unless the person is the holder of a certificate as a registered insurance broker under this Act. R.S.O. 1990, c. R.19, s. 3.

• 3.
• 4Corporation

  4 (1) The Registered Insurance Brokers of Ontario is continued under the name Registered Insurance Brokers of Ontario in English and Courtiers d’assurances inscrits de l’Ontario in French, as a body corporate without share capital. Powers (2) The Corporation has the power to acquire, hold, dispose of and otherwise deal with real and personal property for the purposes of this Act. Objects (3) The Corporation shall have the general purpose of carrying out the powers and duties conferred on it by this Act. R.S.O. 1990, c. R.19, s. 4.

• 4.
• 5Membership

  5 (1) Every person who is registered by the Corporation is a member of the Corporation. Resignation of membership (2) An individual member may resign his or her membership by filing with the Manager a resignation in writing and the registration is thereupon cancelled. 2017, c. 34, Sched. 36, s. 1 (1). Cancellation for default of fees (3) The Manager may cancel a registration for non-payment of any prescribed fee after giving the member at least one month notice in writing of the default and intention to cancel the registration. R.S.O. 1990, c. R.19, s. 5; 2017, c. 34, Sched. 36, s. 1 (2). Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 36, s. 1 (1, 2) - 14/12/2017 Continuing jurisdiction

• 5.
• 5.1Former member

  5.1 (1) An individual who resigns as a member of the Corporation or whose membership expires or is revoked, cancelled or otherwise terminated remains subject to the continuing jurisdiction of the Corporation in respect of an investigation or disciplinary proceeding arising from his or her conduct while a member. 2017, chap. 34, Sched. 36, s. 2. Suspended member (2) A member whose membership is suspended remains subject to the continuing jurisdiction of the Corporation for all purposes under this Act. 2017, chap. 34, Sched. 36, s. 2. Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 36, s. 2 - 14/12/2017

• 6.
• 6Council

  6 (1) The Council shall be the governing body and board of directors of the Corporation and shall manage and administer its affairs. Composition (2) Subject to the regulations, the Council shall be composed of, (a) eight persons who are individual members of the Corporation and are elected by the members in the manner provided by the regulations; (b) three persons who are not members of the Corporation and are appointed by the Lieutenant Governor in Council. Increased size of Council (3) The Lieutenant Governor in Council may, by regulation, vary the size of the Council but at least one-quarter of the members of the Council shall be persons appointed by the Lieutenant Governor in Council who are not members of the Corporation. Transition (4) Despite clause (2) (a), when this Act comes into force, the Lieutenant Governor in Council shall appoint to the Council the eight persons who are in…

• 7.
• [s7]
• 7Qualifications to vote

  7 Every individual member who is, (a) registered under this Act; and (b) not in default of payment of any prescribed fee,

• 8.
• [s8]

  is qualified to vote at an election of members of the Council. R.S.O. 1990, c. R.19, s. 7.

• 9.
• 10.
• 8Organization of Council

  8 (1) The Council shall elect annually a President and one or more Vice-Presidents from among its members. Manager and officers (2) The Council shall appoint during pleasure a Manager and such other officers and servants as may from time to time be necessary or desirable in the opinion of the Council to perform the work of the Corporation. Quorum (3) A majority of the members of the Council, including at least one member who is not a member of the Corporation, constitutes a quorum. R.S.O. 1990, c. R.19, s. 8.

• 11.
• 9Chief Executive Officer

  9 (1) The Chief Executive Officer shall be deemed to have an interest in the Corporation, as the representative of all persons who may be served by registered insurance brokers. 1997, c. 28, s. 228; 2018. c. 8, Sched. 29, s. 3. Information (2) The Corporation shall, within a reasonable time, furnish the Chief Executive Officer with the information and financial statements with respect to the Corporation that the Chief Executive Officer requires. 1997, c. 28, s. 228; 2018. c. 8, Sched. 29, s. 3. Section Amendments with date in force (d/m/y) 1997, c. 28, s. 228 - 01/07/1998 2018, c. 8, Sched. 29, s. 3 - 08/06/2019

• 10Annual reports

  10 (1) The Corporation shall, within four months after the termination of each financial year, provide to its members and the Minister an annual report relating to its activities in that year including, (a) financial statements of the Corporation and the auditor’s report thereon; (b) a summary of the complaints received against members, categorized by source, type and disposition of the complaint; (c) a summary of disciplinary proceedings undertaken against members, categorized by source, type and disposition of the proceedings; (d) a summary of the applications for registration and the disposition of the applications; (e) membership statistics of the Corporation, categorized by size and type of member; (f) an identification of matters of policy currently under review by the Council and of any proposed changes in policies or programs; and (g) any other information considered relevant by …

• 12.
• 11By-laws

  11 (1) The Council may pass by-laws relating to the administrative and domestic affairs of the Corporation not inconsistent with this Act and the regulations and, without limiting the generality of the foregoing, (a) prescribing the seal of the Corporation; (b) providing for the execution of documents by the Corporation; (c) fixing the financial year of the Corporation and providing for the audit of the accounts and transactions of the Corporation; (d) providing procedures for the election of President, Vice-Presidents and other officers of the Corporation, the filling of a vacancy in those offices, and prescribing their duties; (e) respecting the calling, holding and conducting of meetings of the Council and the duties of members of the Council; (f) respecting the calling, holding and conducting of meetings of the membership of the Corporation; (g) prescribing the remuneration of the me…

• 13.
• [s13]
• 12Establishment of committees

  12 (1) The Council shall establish and appoint as hereinafter provided the following committees: (a) a Qualification and Registration Committee; (b) one or more Complaints Committees; (c) a Discipline Committee,

• 14.
• [s14]

  and may establish such other or additional committees as the Council from time to time considers necessary. Panel of lay persons (2) The Lieutenant Governor in Council may appoint such number of persons as the Lieutenant Governor in Council considers appropriate who are not members of the Corporation or members of the Council to a panel of lay persons eligible to serve as members of a Complaints Committee and the Discipline Committee. Term of appointment (3) The appointment of every person under subsection (2) shall be for a term not exceeding four years and a person whose appointment expires is eligible for one reappointment. R.S.O. 1990, c. R.19, s. 12.

• 15.
• 13Issuance of certificates of registration

  13 (1) The Manager shall issue a certificate or renewal thereof to any applicant therefor who is qualified under this Act and the regulations and has passed such examinations as the Council may set or approve and the Manager shall refer to the Qualification and Registration Committee every application for a certificate or renewal thereof that he or she proposes to refuse. Powers and duties of Qualification and Registration Committee (2) The Qualification and Registration Committee shall determine the eligibility of applicants for certificates or renewals thereof and may require an applicant to take and pass such additional examinations as the Council may set or approve and pay such fees therefor as the Qualification and Registration Committee fixes or to take such additional training as the Qualification and Registration Committee specifies. Conditions of certificates (3) The Qualificati…

• 16.
• 14Notice of proposal to refuse registration

  14 (1) Where the Qualification and Registration Committee proposes to refuse to grant a certificate to an applicant, the Manager on behalf of the Committee shall serve notice of the proposal of the Committee together with written reasons therefor, on the applicant. Exemptions (2) Subsection (1) does not apply to a refusal to grant a certificate to a person who was previously registered and whose registration was suspended or revoked as a result of a decision of the Discipline Committee. Notice requiring hearing or review (3) A notice under subsection (1) shall inform the applicant that he, she or it is entitled to a hearing by the Qualification and Registration Committee if he, she or it mails or delivers within fifteen days after the notice under subsection (1) is served on the applicant, notice in writing to the Committee requiring a hearing. Powers of Committee (4) Where an applicant …

• 17.
• 15Complaints Committee

  15 (1) Each Complaints Committee shall be composed of such number of persons as the Council may determine but at least one member of the Committee shall be a person who is not a member of the Corporation and who is appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council. Appointment (2) The Council may appoint any individual member of the Corporation to a Complaints Committee. Membership in other committees (3) No person who is a member of the Discipline Committee shall be a member of a Complaints Committee. Chair (4) The Council shall name one member of each Complaints Committee to be chair of that Committee. Quorum (5) A majority of the members of a Complaints Committee constitutes a quorum. R.S.O. 1990, c. R.19, s. 15.

• 18.
• 16Duties

  16 (1) A Complaints Committee shall consider and investigate complaints regarding the conduct or actions of any member of the Corporation, but no action shall be taken by the Committee under clause (2) (a) unless, (a) a written complaint has been filed with the Manager and the member whose conduct or actions are being investigated has been notified of the complaint and given at least two weeks in which to submit in writing to the Committee any explanation or representations the member may wish to make concerning the matter; and (b) the Committee has examined or has made every reasonable effort to examine all records and other documents relating to the complaint. Idem (2) The Committee in accordance with the information it receives may, (a) direct that the matter be referred, in whole or in part, to the Discipline Committee; (b) direct that the matter not be referred under clause (a); (c)…

• 19.
• 17Discipline Committee

  17 (1) The Discipline Committee shall be composed of such number of persons as the Council may determine but at least four members of the Committee shall be persons who are not members of the Corporation and who are appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council. Appointment (2) The Council may appoint any individual member of the Corporation to the Discipline Committee. Chair (3) The Council shall appoint one of the members of the Discipline Committee who is a member of Council to be the chair of the Committee. Composition of panels (4) The chair of the Discipline Committee may assign a panel of five members of the Committee to hold a hearing of whom one shall be a person appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council and a panel of the Discipline Committee is sufficient to exercise the jurisdi…

• 20.
• 18Duties and powers of Discipline Committee

  18 (1) The Discipline Committee shall, (a) when so directed by the Council or by a Complaints Committee, hear and determine allegations of misconduct or incompetence against any member; (b) hear and determine matters referred to it under sections 16 and 22; and (c) perform such other duties as are assigned to it by the Council. Idem (2) In the case of hearings into allegations of misconduct or incompetence, the Discipline Committee shall, (a) consider the allegations, hear the evidence and ascertain the facts of the case; (b) determine whether upon the evidence and the facts so ascertained the allegations have been proved; (c) determine whether in respect of the allegations so proved the member is guilty of misconduct or incompetence; (d) determine the penalty to be imposed as hereinafter provided in cases in which it finds the member guilty of misconduct or of incompetence. Misconduct (…

• 21.
• 19Discipline proceedings

  19 (1) In proceedings before the Discipline Committee, the Corporation and the member of the Corporation whose conduct is being investigated in the proceedings are parties to the proceedings. Examination of documentary evidence (2) A member whose conduct is being investigated in proceedings before the Discipline Committee shall be afforded an opportunity to examine before the hearing any written or documentary evidence that will be produced or any report the contents of which will be given in evidence at the hearing. Members holding hearing not to have taken part in investigation, etc. (3) Members of the Discipline Committee holding a hearing shall not have taken part before the hearing in any investigation of the subject-matter of the hearing other than as a member of the Council considering the referral of the matter to the Discipline Committee or at a previous hearing of the Committee…

• 22.
• 20Reference to board of inquiry

  20 (1) Where the Manager receives information leading him or her to believe that a member may be an incapacitated member, the Manager shall make such inquiry as he or she considers appropriate and report to the Council who may, upon notice to the member, appoint a board of inquiry composed of at least two members of the Corporation and one member of the Council appointed thereto by the Lieutenant Governor in Council who shall inquire into the matter. Examination (2) The board of inquiry shall make such inquiries as it considers appropriate and may require the member to submit to physical or mental examination by such qualified person as the board designates and if the member refuses or fails to submit to such examination the board may order that his or her certificate be suspended until he or she complies. Hearing by Qualification and Registration Committee (3) The board of inquiry shall…

• 23.
• 21Appeal to court

  21 (1) Any party to proceedings before the Discipline Committee or the Qualification and Registration Committee may appeal from its decision or order to the Divisional Court. Powers of court on appeal (2) An appeal under this section may be made on questions of law or fact or both and the court may affirm or may rescind the decision of the Committee appealed from and may exercise all powers of the Committee and may direct the Committee or the Corporation to take any action which the Committee or the Corporation may take and as the court considers proper, and for such purposes the court may substitute its opinion for that of the Committee, or the court may refer the matter back to the Committee for rehearing, in whole or in part, in accordance with such directions as the court considers proper. R.S.O. 1990, c. R.19, s. 21.

• 24.
• 22Restoration of registration or certificate

  22 (1) A person whose certificate has been revoked or suspended for cause under this Act may apply at any time in writing to the Manager for the issuance of a certificate or removal of the suspension. Reference to Discipline Committee (2) The Manager shall refer the application to the Discipline Committee or, where the revocation or suspension was on the grounds of incapacity, to the Qualification and Registration Committee, which shall hold a hearing and decide upon the application, and shall report its decision and reasons to the Council and to the former member. R.S.O. 1990, c. R.19, s. 22.

• 25.
• 23Restraining orders

  23 (1) Where it appears to the Corporation that a person does not comply with a provision of this Act or the regulations, despite the imposition of any penalty in respect of such non-compliance and in addition to any other rights it may have, the Corporation may apply to a judge of the Superior Court of Justice for an order directing such person to comply with such provision, and upon the application the judge may make such order or such other order as the judge thinks fit. R.S.O. 1990, c. R.19, s. 23 (1); 2006, c. 19, Sched. C, s. 1 (1). Appeal (2) An appeal lies to the Divisional Court from an order made under subsection (1). R.S.O. 1990, c. R.19, s. 23 (2). Section Amendments with date in force (d/m/y) 2006, c. 19, Sched. C, s. 1 (1) - 22/06/2006

• 26.
• 24Stop-orders and other orders

  24 (1) Where the Corporation in the absence of evidence to the contrary made a case that a member has been or may be guilty of misconduct in connection with any property in the member’s possession or under the member’s control, a judge of the Superior Court of Justice may, upon an application made without notice by the Corporation, order that the property described in the order shall not be paid out or dealt with by the person or persons named in the order without the leave of a judge of the Superior Court of Justice. R.S.O. 1990, c. R.19, s. 24 (1); 1993, c. 27, Sched.; 2006, c. 19, Sched. C, s. 1 (1). Appointment of trustee (2) Where the Corporation in the absence of evidence to the contrary makes a case that the business of a member or former member is neglected to the prejudice of any person or that the interests of the clients of the member or former member are not being protected o…

• 27.
• 25Investigation of members

  25 (1) Where the Manager, or in his or her absence, a person designated by the Manager, believes on reasonable and probable grounds that a member has committed an act of misconduct or incompetence, the Manager or the Manager’s designate may by order appoint one or more persons to make an investigation to ascertain whether such an act has occurred, and the person appointed shall report the result of the investigation to the Manager or the Manager’s designate. R.S.O. 1990, c. R.19, s. 25 (1). Idem (2) Where the Manager or the Manager’s designate appoints persons to make an investigation to ascertain whether a member has committed an act of misconduct or incompetence involving trust funds, the persons appointed shall include two persons representing the insurers for whom funds were or ought to have been held in trust. R.S.O. 1990, c. R.19, s. 25 (2). Powers of investigator (3) For purposes …

• 28.
• 26Matters confidential

  26 (1) Every person employed in the administration of this Act, including any person making an inquiry or investigation under section 25 and any member of the Council or a Committee, shall preserve secrecy with respect to all matters that come to his or her knowledge in the course of his or her duties, employment, inquiry or investigation under section 25 and shall not communicate any such matters to any other person except, (a) as may be required in connection with the administration of this Act and the regulations and by-laws or any proceedings under this Act or the regulations; (b) to his or her counsel; or (c) with the consent of the person to whom the information relates. Testimony in civil suit (2) No person to whom subsection (1) applies shall be required to give testimony in any civil suit or proceeding with regard to information obtained by him or her in the course of his or her…

• 29.
• 27Repealed

  27 Repealed: 2001, c. 8, s. 215. Section Amendments with date in force (d/m/y) 2001, c. 8, s. 215 - 29/06/2001

• 30.
• 28Mailing address

  28 (1) Every member shall maintain a mailing address in Ontario, which address shall be suitable to permit service by registered mail, and shall register the mailing address with the Manager. Personal service (2) Any legal process and any notice or document served personally or served by registered mail at the mailing address registered with the Manager shall be deemed for all purposes to have been served personally upon the member. Deemed resident (3) For the purpose of any civil action brought against a member, the member shall be deemed to be a resident of the county in which the mailing address is located. R.S.O. 1990, c. R.19, s. 28.

• 31.
• 29Service of notice and oaths

  29 (1) Subject to section 28, any notice or document required by this Act to be served may be served personally or by mail addressed to the person to whom notice is to be given at his or her last known address and, where notice is served by mail, the service shall be deemed to have been made on the fifth day after the day of mailing unless the person to whom notice is given establishes that the person, acting in good faith, through absence, accident, illness or other cause beyond the person’s control, did not receive the notice, or did not receive the notice until a later date. R.S.O. 1990, c. R.19, s. 29 (1); 2016, c. 37, Sched. 21, s. 3. Idem (2) For a period of one year after the date on which a former member ceased to be a member of the Corporation, the mailing address of the former member registered with the Manager under section 28 shall be deemed to be the former member’s last kno…

• 32.
• 30Registrar’s certificate as evidence

  30 Any statement containing information from the records required to be kept by the Manager under this Act, purporting to be certified by the Manager under the seal of the Corporation is admissible in evidence in all courts as proof, in the absence of evidence to the contrary, of the facts stated therein without proof of the appointment or signature of the Manager and without proof of the seal. R.S.O. 1990, c. R.19, s. 30.

• 33.
• 31Immunity

  31 No action or other proceeding for damages shall be instituted against the Corporation, the Council, a Committee or any member of the Council or committee, or any officers, servants, agents or appointees of the Corporation, for any act done in good faith in the performance or intended performance of any duty or in the exercise or the intended exercise of any power under this Act, a regulation or a by-law, or for any neglect or default in the performance or exercise in good faith of such duty or power. R.S.O. 1990, c. R.19, s. 31.

• 34.
• 32Trust funds

  32 (1) All funds received or receivable by a member in the course of business on behalf of insurers from members of the public or on behalf of members of the public from insurers are deemed to be trust funds. Idem (2) No member shall assign, pledge, hypothecate or mortgage or in any way charge the funds referred to in subsection (1) whether or not such funds have been received or remain receivable. Idem (3) Any assignment, pledge, hypothecation, mortgage or other charge of or on funds referred to in subsection (1) is null and void as against the beneficial owner of the funds. R.S.O. 1990, c. R.19, s. 32.

• 35.
• 33Falsification of certificates

  33 (1) No person shall make or cause to be made any wilful falsification in any matter relating to a register or issue a false certificate or document with respect to registration. False representations, etc. (2) No person shall wilfully procure or attempt to procure himself, herself or itself or any other person to be registered under this Act by knowingly making any false representation or declaration or by making any fraudulent representation or declaration, either orally or in writing. R.S.O. 1990, c. R.19, s. 33.

• 36.
• 34Offence

  34 (1) Every person who contravenes any provision of this Act and every director or officer of a corporation or unincorporated association and every member of a partnership who knowingly concur in such contravention is guilty of an offence and on conviction is liable to a fine of $100,000 or to imprisonment for a term of not more than six months, or to both. R.S.O. 1990, c. R.19, s. 34 (1); 2016, c. 37, Sched. 21, s. 4. Corporation (2) Where a corporation is convicted of an offence under subsection (1), the maximum penalty that may be imposed upon the corporation is $200,000 and not as provided therein. R.S.O. 1990, c. R.19, s. 34 (2). Limitation period (3) No proceeding under this section shall be commenced more than five years after the time when the subject-matter of the proceeding arose. R.S.O. 1990, c. R.19, s. 34 (3). Section Amendments with date in force (d/m/y) 2016, c. 37, Sched…

• 35Regulations

  35 The Lieutenant Governor in Council may make regulations, (a) respecting and governing the nomination, election and term of office of the members to be elected to the Council, the filling of vacancies on the Council and controverted elections; (b) governing the size and composition of the Council; (c) respecting any matter ancillary to the provisions of this Act with regard to the issuing, renewal, suspension and revocation of certificates; (d) providing for the expiration of certificates and governing and establishing the requirements and qualifications for the issuing and renewal of certificates; (e) providing for the maintenance and inspection of registers; (f) governing standards of practice for registered insurance brokers; (g) defining misconduct for the purposes of this Act and providing for a code of conduct; (h) providing for a program for the continuing education of members t…

• 35.1Repealed

  35.1 Repealed: 2020, c. 36, Sched. 14, s. 15 (2). Section Amendments with date in force (d/m/y) 2018, c. 8, Sched. 29, s. 2 - 08/06/2019 2020, c. 36, Sched. 14, s. 15 (2) - 08/12/2020

• 36Transition

  36 Despite any other provision of this Act, a person holding a valid licence as an insurance agent or an insurance broker under the Insurance Act issued before the 1st day of October, 1981, who was an insurance broker within the meaning of insurance broker contained in this Act, shall be deemed to be a registered insurance broker under this Act and the person shall be so registered as a member by the Manager. R.S.O. 1990, c. R.19, s. 36. ______________