PART II GENERAL PROVISIONS APPLICABLE TO INSURERS
Authority rules
121.0.1 (1) The Authority may make rules in respect of the following matters: 1.  Prescribing terms, conditions and limitations with respect to the reinsurance of risk. 1.1.  Prescribing jurisdictions other than Ontario and governing the adoption of international standards of solvency regulation for the purposes of paragraph 1 of subsection 42 (1.1) and paragraph 1 of subsection 42 (1.3). 2.  Prescribing limitations and conditions for the purpose of subsection 43 (4). 3.  Designating one or more bodies corporate or associations as compensation associations and designating any such body corporate or association as a compensation association for one or more classes of insurers specified by the Authority rules. 4.  Designating insurers for the purposes of clause 44 (3) (a) and designating classes of insurers for the purposes of clause 44 (3) (e). 5.  Prescribing ratios, percentages, amounts and calculations for the purposes of subsection 102 (8), and any such Authority rule may prescribe different ratios, percentages, amounts and calculations for one or more classes of insurance and for insurers whose business is limited to that of reinsurance. 6.  Exempting any insurer or class of insurers from any Authority rule made under paragraph 5, subject to such terms and conditions as may be set out in the Authority rules. 7.  Prescribing categories of insurers for the purpose of subsection 101 (1), requiring insurers to file a return under that subsection by category and prescribing the information that insurers may solicit from insured persons for the purposes of such returns. 8.  Prescribing the information to be provided under section 101.1 and any conditions that apply to the provision of the information. 8.1  Prescribing persons, information and other requirements for the purposes of section 101.2. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 121.0.1 (1) of the Act is amended by adding the following paragraph: (See: 2022, c. 17, Sched. 2, s. 4) 8.2  Prescribing the information to be provided under subsection 101.3 (1) and prescribing requirements for the purposes of that subsection. 9.  Prescribing categories of insurers for the purposes of subsection 102 (1). 10.  Prescribing dates for the purposes of clause 102 (1) (a). 11.  Governing the preparation of financial statements required under this Act, the regulations or the Authority rules. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 121.0.1 (1) of the Act is amended by adding the following paragraph: (See: 2021, c. 40, Sched. 14, s. 2) 11.1  Governing the conduct of insurers and agents with respect to the design, marketing, sale, issuance and administration of variable insurance contracts as defined in subsection 110 (1), including the following matters: i.  Prescribing the form and content of variable insurance contracts. ii.  Prescribing the form, content, time of filing and delivery of information folders and the persons to whom information folders shall be delivered. iii.  The furnishing of information by an insurer or an agent thereof to prospective purchasers of variable insurance contracts. iv.  Prescribing the documents, reports, statements, agreements and other information required to be filed, furnished or delivered under section 110, and the form and content thereof. v.  Governing what constitutes an individual variable insurance contract. 12.  Prescribing the circumstances in which an individual is affiliated with an insurer for the purposes of Part II.2. 13.  Governing the establishment and operation of committees of insurers, including setting out requirements respecting the composition, membership, quorum, powers and duties of committees established by the directors of insurers. 14.  Exempting any insurer or class of insurers from Part II.2 or from any provision of that Part or the Authority rules made for the purposes of that Part, subject to such conditions as may be set out in the exempting Authority rules. 15.  Governing the investment and valuation of the assets of the Fire Mutuals Guarantee Fund. 16.  Prescribing information for which access is limited under clause 174 (8) (b). 16.1  Prescribing requirements respecting the electronic designation of a beneficiary under subsection 190 (1.2). 17.  For the purposes of subsection 190 (4), respecting the circumstances under which an insurer may not restrict or exclude in a contract of life insurance the right of an insured to designate persons to whom or for whose benefit insurance money is to be payable and respecting the restriction or exclusion in a contract of such right. 18.  Prescribing the rights the insured may exercise under a contract of life insurance in the circumstances described in subsection 197 (2). 18.1  Prescribing, for the purposes of subsection 229 (1), the times for supplying information and the information to be supplied. 19.  Prescribing, for the purposes of subsection 236 (6), types of contracts and circumstances. 20.  Governing the filing and determination of grounds under section 238 for different coverages and categories of automobile insurance, including in respect of, i.  filing requirements and materials to be furnished, ii.  the provision of information, iii.  prohibitions from using grounds, and iv.  the criteria to be considered in determining whether a ground to terminate is just and reasonable in the circumstances. 21.  Governing the concurrent filing of grounds under section 238.1. 22.  Prescribing anything that, in sections 288.3 to 288.7, is required or permitted to be prescribed or to be done in accordance with the Authority rules. 23.  Governing the sale and marketing of prescribed classes of insurance to members of a group, including prescribing and regulating qualifications for membership in groups. 24.  Governing group insurance contracts or schemes, or any class thereof, including prescribing and regulating their terms and conditions, qualifications for membership in groups and regulating the marketing of group insurance contracts or schemes. 25.  Governing the advertising of insurance contracts, or any class thereof, including prescribing and regulating the form and content of advertisements and requiring their filing. 26.  Prescribing information for which access is limited under clause 293 (8) (b). 26.1  Prescribing requirements respecting the electronic designation of a beneficiary under subsection 313 (1.0.2). 27.  For the purpose of subsection 313 (1.2), respecting the circumstances under which an insurer may not restrict or exclude in a contract of accident and sickness insurance the right of an insured to designate persons to whom or for whose benefit insurance money is to be payable and respecting the restriction or exclusion in a contract of such right. 28.  Prescribing such matters as are required or permitted to be prescribed under sections 380.1 to 386 with respect to reciprocal insurance exchanges. 29.  Prescribing the rights the insured may exercise under a contract of accident and sickness insurance in the circumstances described in subsection 317.1 (2). 30.  Prescribing types of contracts of automobile insurance and types of endorsements to contracts of automobile insurance in respect of which sections 410 to 417 apply. 31.  Governing applications and approvals in respect of risk classification systems and rates for different coverages and categories of automobile insurance under sections 410 to 417, including in respect of, i.  application requirements and materials to be furnished, ii.  the provision of information, and iii.  the criteria to be considered in determining whether a risk classification system or rate is just and reasonable in the circumstances. 32.  Prescribing a risk classification system or elements of a risk classification system that must be used by insurers or a class of insurers in classifying risks for a coverage or category of automobile insurance. 33.  Prescribing elements of a risk classification system that insurers or a class of insurers are prohibited from using in classifying risks for a coverage or category of automobile insurance. 34.  Prescribing maximum monetary amounts and percentages by which the rate for a class of risks in respect of a coverage or category of automobile insurance may increase or decrease as a result of the application of an Authority rule made under paragraph 32 or 33. 35.  With respect to the definition of “commercial loan” in subsection 432 (1), i.  prescribing an amount for the purposes of subclause (a) (i) of the definition, ii.  prescribing international agencies and other entities for the purposes of subclauses (a) (iii) and (b) (ii) of the definition, iii.  prescribing rules for determining amounts for the purposes of subclause (a) (v) and sub-subclauses (a) (vi) (A), (a) (vii) (A) and (a) (viii) (A) of the definition, and iv.  defining “widely distributed” for the purposes of subclauses (b) (iv) and (c) (i) of the definition. 36.  Prescribing classes of subsidiaries of insurers for the purposes of the definition of “prescribed subsidiary” in subsection 432 (1). 37.  Prescribing permitted entities and classes of permitted entities in which an insurer may acquire, hold or increase a substantial investment and prescribing any circumstances or conditions that must be satisfied for an entity to be a permitted entity for the purposes of Part XVII. 38.  Prescribing interests in real property for the purposes of Part XVII. 39.  Respecting the investment by insurers in permitted entities, including restrictions and limits on investments in permitted entities and rules relating to the form of the investments in permitted entities. 40.  Prescribing undertakings and information for the purposes of subsections 435.1 (4) and (5). 41.  Prescribing circumstances in which an insurer or a member of a class of insurers may acquire, hold or increase a substantial investment in an entity or a class of entities. 42.  Prescribing conditions for the purposes of clauses 435.3 (1) (c) and (d). 43.  Prescribing circumstances for the purposes of clause 435.3 (4) (a), 435.4 (4) (a) or 435.6 (4) (a). 44.  Repealed: 2019, c. 14, Sched. 9, s. 20. 45.  Prescribing circumstances for the purposes of clause 435.6 (1) (f). 46.  Prescribing rules for determining the various financial limits referred to in Part XVII. 47.  Prescribing restrictions or conditions on the making of investments or loans or on acquiring an interest in property for the purposes of section 435.7. 48.  Prescribing circumstances for the purposes of subsection 435.8 (1). 49.  Prescribing requirements for the purposes of subsection 435.8 (3). 50.  Prescribing an amount or rules for determining an amount for the purposes of, i.  Repealed: 2019, c. 14, Sched. 9, s. 20. ii.  subsection 435.9 (2), iii.  section 435.10, iv.  subsection 435.11 (2), and v.  subsection 435.12 (2). 51.  Prescribing rules for determining the value of assets and an insurer’s total assets for the purposes of section 435.14. 52.  Prescribing rules and circumstances for the purposes of clause 435.14 (3) (c). 53.  Exempting any insurer or class of insurers from Part XVII or from any provision of that Part or the Authority rules made for the purposes of that Part, subject to such conditions as may be set out in the exempting Authority rules. 54.  Providing that one or more of the financial limits prescribed for the purposes of Part XVII do not apply in respect of an insurer or class of insurers or with respect to an investment or class of investments, or both, and prescribing when the financial limit does not apply and any conditions that must be satisfied for the financial limit not to apply. 55.  Exempting any insurer or class of insurers from Part XVII.1 or from any provision of that Part or the Authority rules made for the purposes of that Part, subject to such conditions as may be set out in the exempting Authority rules. 56.  Prescribing holding companies and circumstances for the purposes of clause 437.13 (2) (c). 57.  Prescribing circumstances in which an insurer may enter into a transaction with a related party and setting out conditions respecting such transactions. 58.  Prescribing conditions and circumstances under which a transaction entered into by a subsidiary of an insurer will not be deemed to have been entered into by the insurer. 59.  Prescribing rules and conditions relating to transactions between insurers and related parties. 60.  Prescribing, for the purposes of paragraph 1 of subsection 437.18 (1), i.  a nominal amount or rules for determining what constitutes a nominal amount, and ii.  what constitutes a transaction that is immaterial to an insurer or rules for determining what constitutes an immaterial transaction. 61.  Prescribing conditions for the purposes of subparagraph 4 i and rules for the purposes of subparagraph 4 ii of subsection 437.18 (1). 62.  Prescribing permitted transactions for the purposes of paragraphs 10 and 16 of subsection 437.18 (1). 63.  Prescribing transactions between an insurer and a related party that are permitted for the purposes of subsection 437.18 (4), despite the fact that they are not on terms and conditions at least as favourable to the insurer as market terms and conditions. 64.  Prescribing an amount or rules for determining an amount for the purposes of subsection 437.19 (2). 65.  Prescribing for the purposes of subsection 437.19 (6), i.  types or classes of transactions, ii.  rules for determining the total value of transactions, and iii.  an amount or rules for determining an amount. 66.  Prescribing for the purposes of subsection 437.19 (7), i.  types or classes of transactions that require approval of the directors of an insurer, ii.  rules for determining the total value of transactions, iii.  an amount or rules for determining an amount, and iv.  what constitutes approval, including prescribing a minimum percentage of directors who must approve. 67.  Prescribing any activity or failure to act that constitutes an unfair or deceptive act or practice under the definition of “unfair or deceptive acts or practices” in section 438, and prescribing requirements that, if not complied with, constitute an unfair or deceptive act or practice. 68.  Respecting the relations between insurers, agents or brokers and, i.  entities that undertake the business of financial services, ii.  financial services intermediaries, and iii.  customers of persons and entities referred to in subparagraphs i and ii. 69.  Respecting networking arrangements between insurers and other persons providing products or services to the insurer or its customers. 70.  Prohibiting or restricting networking arrangements. 71.  Governing the conduct of insurers, agents and brokers in networking arrangements. 2017, c. 34, Sched. 21, s. 10; 2018, c. 8, Sched. 13, s. 9; 2019, c. 7, Sched. 33, s. 3 (2); 2019, c. 14, Sched. 9, s. 20; 2023, c. 8, Sched. 5, s. 1. Classes, service provider’s licences (2) For greater certainty, an Authority rule made under paragraph 22 of subsection (1) may create different classes of service provider’s licences and may establish different requirements, conditions and restrictions for each class. 2017, c. 34, Sched. 21, s. 10. Rules re agents’ licences (3) The Authority may make rules relating to licences authorizing a person to act as an insurance agent in Ontario. 2017, c. 34, Sched. 21, s. 10. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 121.0.1 (3) of the Act is amended by striking out “Ontario” at the end and substituting “Ontario, including rules requiring that a person licensed to act as an insurance agent use specified titles”. (See: 2019, c. 7, Sched. 25, s. 19) Rules re adjusters’ licences (4) The Authority may make rules relating to licences authorizing a person to act as an insurance adjuster in Ontario. 2017, c. 34, Sched. 21, s. 10. Legislation Act, 2006 (5) Part III (Regulations) of the Legislation Act, 2006 does not apply to the Authority rules. 2017, c. 34, Sched. 21, s. 10. Regulation prevails (6) If there is a conflict or an inconsistency between a regulation made by the Lieutenant Governor in Council under this Act and an Authority rule, the regulation prevails, but in all other respects an Authority rule has the same force and effect as a regulation. 2017, c. 34, Sched. 21, s. 10. Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 21, s. 10 - 08/06/2019 2018, c. 8, Sched. 13, s. 9 (1, 2) - 08/06/2019; CTS 04 SE 18 - 1 2019, c. 7, Sched. 25, s. 19 - not in force; 2019, c. 7, Sched. 33, s. 3 (1) - 08/06/2019; 2019, c. 7, Sched. 33, s. 3 (2) - 08/06/2019; 2019, c. 14, Sched. 9, s. 20 - 10/12/2019 2021, c. 40, Sched. 14, s. 2 - not in force 2022, c. 17, Sched. 2, s. 4 - not in force 2023, c. 8, Sched. 5, s. 1 - 18/05/2023 121.1 Repealed:
2020, c. 36, Sched. 14, s. 8 (2). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 10 (25) - 10/10/1997 2015, c. 20, Sched. 17, s. 1 - no effect - see 2020, c. 36, Sched. 14, s. 3 - 08/12/2020 2020, c. 36, Sched. 14, s. 8 (2) - 08/12/2020