REGARDING the Insurance Act, R.S.O. 1990,
Chapter I. 8, as amended, in particular section 441
AND REGARDING Old Republic Insurance Company of Canada ("Old Republic")
CEASE AND DESIST ORDER
The Superintendent of the Financial Services Commission of Ontario ("Superintendent") is of the opinion that Old Republic committed an unfair or deceptive act or practice by writing non-fleet insurance business which it was not authorized to do.
TAKE NOTICE THAT pursuant to section 441(2) of the Insurance Act (the "Act"), and with the consent of Old Republic, the Superintendent hereby orders that the Chief Executive Officer and Vice President of Finance of Old Republic, on behalf of Old Republic, shall provide on or before November 30, 2007, written confirmation to the Superintendent that they are satisfied that Old Republic’s written internal control procedures with respect to its operating processes have been reviewed and amended so that the deficiencies that resulted in or permitted the writing of unapproved non-fleet policies with unapproved rates have been appropriately addressed. The confirmation shall also include a description of any revisions or amendments that are made as a result of this review, together with copies of the revised or amended internal control procedures.
AND TAKE NOTICE THAT section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and section 447(3) provides that that a person guilty of an offence under section 447(2)(b) is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.
AND FURTHER TAKE NOTICE THAT section 447(4) of the Act provides that every director, officer and chief agent of a corporation who caused, authorized, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.
ISSUED AT the City of Toronto, July 6, 2007
Superintendent of Financial Services
Old Republic Insurance Company of Canada
Box 557, 100 King Street West
Hamilton ON L8N 3K9
Paul M. Field, Chief Executive Officer
Jason Smith, Vice President Finance