Permanent Cease And Desist Order Against Security National Insurance Company (Security National) And TD General Insurance Company (TD General)

REGARDING the Insurance Act, R.S.O. 1990, Chapter I.8, as amended, in particular section 441

 

AND REGARDING Security National Insurance Company (“Security National”) and TD General Insurance Company (“TD General”)
 
 

CEASE AND DESIST ORDER

On March 14, 2005, the Superintendent of Financial Services (“Superintendent”) issued a “Notice of Proposed Cease and Desist Order” to Security National and TD General as he was of the opinion that Security National and TD General had committed unfair or deceptive acts or practices by charging rates for coverages or categories of automobile insurance that were not approved by the Superintendent.

 

On March 14, 2005, Security National and TD General were each served with a copy of the “Notice of Proposed Cease and Desist Order.”  Neither Security National nor TD General requested a hearing with respect to the “Notice of Proposed Cease and Desist Order” within 15 days.

TAKE NOTICE THAT pursuant to section 441(7) of the Insurance Act (“the Act”), the Superintendent hereby orders that Security National and TD General:

 

A.        Reimburse affected policyholders in a manner acceptable to the Superintendent

 

B.        Institute internal control procedures, which are satisfactory to the Superintendent, designed to ensure that all rates charged for all coverages or categories of automobile insurance are in accordance with the rates filed with, and approved by, the Superintendent or the Financial Services Tribunal, as the case may be, and provide the Superintendent with a written copy of these internal control procedures;

 

C.        Each make a payment to the Minister of Finance in the amount of $50,000 in order to remedy the effects of the failure to charge rates for coverages or categories of automobile insurance in accordance with the Act, including the reduction of public confidence in the automobile insurance industry.

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 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, March 30, 2005

                                                           

Bryan P. Davies

Chief Executive Officer and

Superintendent of Financial Services

 

TO:                 
Security National Insurance Company
c/o Meloche Monnex Inc.
50 Place Cremazie, 12th Floor
Montreal, Quebec   H2P 1B6

 

AND TO:
TD General Insurance Company
c/o Meloche Monnex Inc.
50 Place Cremazie, 12th Floor
Montreal, Quebec   H2P 1B6