PART VI AUTOMOBILE INSURANCE
Grounds to terminate
238 (1) An insurer shall not decline to issue, terminate or refuse to renew a contract or refuse to provide or continue a coverage or endorsement, except on a ground filed with the Chief Executive Officer under this section.  1993, c. 10, s. 19; 1997, c. 28, s. 111; 2018, c. 8, Sched. 13, s. 22. Filing of grounds (2) An insurer shall file with the Chief Executive Officer the grounds on which the insurer intends to decline to issue, terminate or refuse to renew a contract or refuse to provide or continue a coverage or endorsement.  1993, c. 10, s. 19; 1997, c. 28, s. 111; 2018, c. 8, Sched. 13, s. 22. Material to be furnished (3) The grounds shall be filed in a form approved by the Chief Executive Officer and shall be filed together with such information, material and evidence as the Chief Executive Officer may specify.  1993, c. 10, s. 19; 1997, c. 28, s. 111; 2018, c. 8, Sched. 13, s. 22. Request for additional information (3.1) The Chief Executive Officer may require that the insurer provide such additional information, material and evidence as the Chief Executive Officer may specify in order to make a decision with respect to a filed ground.  2010, c. 26, Sched. 9, s. 1 (1); 2018, c. 8, Sched. 13, s. 22. Prohibition from using ground (4) The Chief Executive Officer shall notify the insurer orally or otherwise that the insurer is prohibited from using one or more of the grounds filed under subsection (2) if the Chief Executive Officer is of the opinion that the ground, (a)  is subjective; (b)  is arbitrary; (c)  bears little or no relationship to the risk to be borne by the insurer in respect of an insured; or (d)  is contrary to public policy.  2010, c. 26, Sched. 9, s. 1 (2); 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (4) of the Act is repealed and the following substituted: (See: 2017, c. 34, Sched. 21, s. 19 (1)) Prohibition from using ground (4) The Superintendent shall notify the insurer orally or otherwise that the insurer is prohibited from using one or more of the grounds filed under subsection (2) if the Superintendent is of the opinion that the ground is not just and reasonable, having considered the criteria set out in the Authority rules. 2017, c. 34, Sched. 21, s. 19 (1). Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (4) of the Act, as re-enacted by section 19 of Schedule 21 to the Stronger, Fairer Ontario Act (Budget Measures), 2017, is amended by striking out “Superintendent” wherever it appears and substituting in each case “Chief Executive Officer”. (See: 2018, c. 8, Sched. 13, s. 10) When insurer may use ground (4.1) Unless the Chief Executive Officer notifies the insurer that the insurer is prohibited from using a ground, the insurer may use the ground 30 days after the later of, (a)  the day the insurer files the ground under subsection (2); or (b)  the day the additional information, material or evidence requested is provided, if the Chief Executive Officer requires the insurer to provide additional information, material or evidence under subsection (3.1).  2010, c. 26, Sched. 9, s. 1 (2); 2018, c. 8, Sched. 13, s. 22. Notice (5) If the Chief Executive Officer notifies an insurer orally that the insurer is prohibited from using a ground, the Chief Executive Officer shall promptly mail a written notice to the insurer confirming that fact.  1993, c. 10, s. 19; 1997, c. 28, s. 111; 2018, c. 8, Sched. 13, s. 22. Appeal to Tribunal (6) If the Chief Executive Officer notifies an insurer that the insurer is prohibited from using a ground, the insurer may within 15 days appeal the decision to the Tribunal.  1997, c. 28, s. 112; 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (6) of the Act is repealed and the following substituted: (See: 2017, c. 34, Sched. 21, s. 19 (2)) Decision final (6) A decision of the Superintendent is final for all purposes. 2017, c. 34, Sched. 21, s. 19 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (6) of the Act, as re-enacted by section 19 of Schedule 21 to the Stronger, Fairer Ontario Act (Budget Measures), 2017, is amended by striking out “Superintendent” and substituting “Chief Executive Officer”. (See: 2018, c. 8, Sched. 13, s. 10) Prohibition by Tribunal (7) After the hearing, the Tribunal shall prohibit the insurer from using the ground if the Tribunal finds that the ground comes within any of clauses (4) (a), (b), (c) and (d).  1997, c. 28, s. 112. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (7) of the Act is repealed and the following substituted: (See: 2017, c. 34, Sched. 21, s. 19 (2)) Definition (7) In this section, “insurer” includes the Facility Association. 2017, c. 34, Sched. 21, s. 19 (2). Reconsideration (8) The Chief Executive Officer may, at any time, give notice in writing to an insurer that, (a)  he or she is of the opinion that a ground that has been filed under this section or the manner in which it is applied comes within any of clauses (4) (a), (b), (c) and (d); and (b)  he or she intends to prohibit the use of the ground or to prohibit the use of the ground in a specified manner.  1997, c. 28, s. 112; 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (8) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) Request for hearing (9) Within 15 days after receiving the notice, the insurer may request in writing that the Tribunal hold a hearing before the Chief Executive Officer takes any action described in the notice.  1997, c. 28, s. 112; 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (9) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) Hearing (10) If, within the time period allowed, the insurer requests a hearing, the Tribunal shall hold a hearing.  1997, c. 28, s. 112. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (10) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) No request for hearing (11) If, within the time period allowed, the insurer does not request a hearing, the Chief Executive Officer may take any action described in the notice.  1997, c. 28, s. 112; 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (11) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) Powers of Tribunal (12) At a hearing, if the Tribunal finds that the ground or the manner in which it applies comes within any of clauses (4) (a), (b), (c) and (d), the Tribunal shall prohibit the insurer from using the ground or from using it in a specified manner.  1997, c. 28, s. 112. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (12) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) Information to provide (13) The Chief Executive Officer or the Tribunal may require insurers, agents and brokers to provide the information, material and evidence that the Chief Executive Officer or Tribunal, as the case requires, considers necessary for the purposes of this section.  1997, c. 28, s. 112; 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 238 (13) of the Act is repealed. (See: 2017, c. 34, Sched. 21, s. 19 (2)) Section Amendments with date in force (d/m/y) 1993, c. 10, s. 19 - 01/01/1994; 1997, c. 28, ss. 111, 112 - 01/07/1998 2010, c. 26, Sched. 9, s. 1 (1, 2) - 08/12/2010 2017, c. 34, Sched. 21, s. 19 (1, 2) - not in force 2018, c. 8, Sched. 13, s. 10 - not in force; 2018, c. 8, Sched. 13, s. 22 - 08/06/2019; CTS 04 SE 18 - 1