Superintendent
of surintendant des
Financial services
Services financiers
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REGARDING the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular sections 441.1, 441.2 and 441.3
AND REGARDING the Automobile Insurance Rate Stabilization Act, 2003, S.O. 2003, c. 9, as amended (“AIRSA”), in particular section 11.3
AND REGARDING Security National Insurance Company
ORDER TO IMPOSE AN
ADMINISTRATIVE PENALTY
Security National Insurance Company (“Security National”) holds insurer licence 397 issued by the Superintendent of Financial Services (“Superintendent”) under the Act.
On April 28, 2016, the Superintendent issued a Notice of Proposal to impose an administrative penalty of $50,000 on Security National. The Superintendent had determined that during the period including January 2013 through November 2014, Security National charged rates for automobile insurance in the Personal Vehicles – Private Passenger Automobile category that were not approved by the Superintendent, in contravention of section 8 of the AIRSA. Specifically, Security National’s contravention involved mid-term modifications to an insurance policy’s “principal group” and “rating group” properties.
The Notice of Proposal was given to Security National on May 2, 2016, and Security National had 15 days to request a hearing by the Financial Services Tribunal (“Tribunal”) in accordance with the Act.
The Registrar of the Tribunal has confirmed that, as of May 18, 2016, no request for hearing has been filed by Security National or anyone on its behalf.
Subsection 441.3(7) of the Act provides that the Superintendent may carry out the proposal to impose the administrative penalty if no hearing has been requested.
ORDER
Pursuant to subsection 441.3(7) of the Act, an administrative penalty of $50,000 is imposed on Security National Insurance Company.
TAKE NOTICE THAT Security National Insurance Company will receive an invoice from Ontario Shared Services, a part of the Ministry of Government and Consumer Services, with information as to where and how to make the payment.
FURTHER, TAKE NOTICE THAT Security National Insurance Company must pay the administrative penalty no later than 30 days from the date of the invoice. If Security National Insurance Company fails to pay the administrative penalty in accordance with the terms of this Order, the Superintendent may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.
DATED at Toronto, Ontario, May 19, 2016
original signed by Brian Mills
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Brian Mills
Superintendent of Financial Services