[38] Bill 5 Royal Assent (PDF)

Bill 5 2003

An Act to temporarily freeze
automobile insurance rates
for private passenger vehicles and to
provide for the review and regulation of
risk classification systems and
automobile insurance rates for
private passenger vehicles

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1.  In this Act,

"authorized rate" means, in respect of a contract of automobile insurance, the rate the insurer is authorized under this Act to charge on the issue or renewal of the contract; ("taux autorisé")

"automobile insurance" has the same meaning as in section 1 of the Insurance Act; (assurance-automobile")

"contract" has the same meaning as in section 1 of the Insurance Act; ("contrat")

"insurer" means a person who undertakes or agrees or offers to undertake a contract of automobile insurance and includes the Facility Association; ("assureur")

"Superintendent" means the Superintendent of Financial Services appointed under the Financial Services Commission of Ontario Act, 1997. ("surintendant")

Application of Act

2.  (1)  This Act applies to insurers and contracts of automobile insurance to which sections 410 to 417 of the Insurance Act would apply but for sections 4 and 5 of this Act.

Same

(2)  This Act does not apply to an insurer in respect of any category or coverage of automobile insurance for which the insurer is not required to make an application for approval under section 410 of the Insurance Act by reason of an exemption granted under subsection 413 (1) of that Act.

Facility Association

(3)  This Act applies to the Facility Association only with respect to the Personal Vehicles - Private Passenger Automobile category of automobile insurance.

Temporary insurance rate freeze

3.  Subject to sections 5, 6 and 7, every insurer, on issuing or renewing a contract of automobile insurance after October 22, 2003, shall use only the rate for each category and coverage of automobile insurance that was approved or was deemed to have been approved under the Insurance Act as of October 23, 2003.

Suspension of applications for approval

4.  (1)  Except as permitted under section 5, no insurer shall, while this section is in force,

(a) apply to the Superintendent for approval under section 410 of the Insurance Act; or

(b) submit a new application or resubmit an application to the Superintendent under subsection 411 (5) of the Insurance Act.

No applications to be approved

(2)  Except as permitted under section 5, the Superintendent shall not, while this section is in force, approve any application made under section 410 of the Insurance Act.

Superintendent deemed to have refused to approve

(3)  The Superintendent shall be deemed to have refused to approve any application made by an insurer under section 410 of the Insurance Act unless,

(a) the application was approved or was deemed to have been approved under that Act on or before October 23, 2003; or

(b) the application was made in accordance with section 5.

ss. 411, 412 and 412.1 of Insurance Act not applicable

(4)  Sections 411, 412 and 412.1 of the Insurance Act do not apply to any application for approval that the Superintendent is deemed under subsection (3) to have refused to approve.

Application for approval of first authorized rate

5.  (1)  An insurer shall apply for approval under section 410 of the Insurance Act and the Superintendent shall consider the application if,

(a) the insurer proposes to issue a contract of automobile insurance to which this Act applies; and

(b) there is no rate or risk classification system approved or deemed to have been approved under the Insurance Act as of October 23, 2003 for use by the insurer for the coverage or category of insurance to be provided by the insurer under the contract.

Prior application

(2)  The Superintendent shall consider an application for approval made under section 410 of the Insurance Act before section 4 came into force if the conditions described in clauses (1) (a) and (b) are satisfied.

Limitation on application

(3)  The following rules apply in respect of an application referred to in subsection (1) or (2):

1. The application shall be limited to the risk classification system and rates the insurer intends to use in respect of the coverages and categories provided under contracts to be issued after October 22, 2003 for which no rates or risk classification systems have been approved or deemed to have been approved under the Insurance Act as of October 23, 2003 for use by the insurer.

2. The application may only be made before the Superintendent orders the insurer to make an application under section 7.

3. Sections 411, 412 and 412.1 of the Insurance Act do not apply in respect of the application.

4. Subject to section 7, the Superintendent's decision with respect to the application is final for all purposes.

Application to charge higher rates

6.  (1)  An insurer may apply to the Superintendent for approval to charge rates that exceed the authorized rates if the insurer believes it is just and reasonable in the circumstances having regard to the insurer's financial circumstances, but the Superintendent shall not approve the application unless the criteria in clauses (2) (a) and (b) are satisfied.

Criteria for approving higher rate

(2)  The Superintendent shall not approve a rate proposed by the insurer or a rate that is less than the proposed rate but more than the authorized rate unless,

(a) the insurer demonstrates to the Superintendent's satisfaction that a rate exceeding the authorized rate is just and reasonable in the circumstances, having regard to the insurer's exceptional financial circumstances; and

(b) the Superintendent considers that it is in the public interest to approve a rate that exceeds the authorized rate.

Not more than one application

(3)  An insurer shall not make more than one application under this section.

When no application may be made

(4)  An insurer shall not make an application under this section if,

(a) the insurer has made an application referred to in section 5; or

(b) the Superintendent has ordered the insurer to make an application under section 7.

Material to be provided

(5)  The Superintendent may require an applicant to provide such information, material and evidence as the Superintendent considers necessary in order to make a decision with respect to the application.

Effective date of rate increase

(6)  A rate increase approved by the Superintendent under this section takes effect on the date or dates specified in the Superintendent's decision.

Decision final

(7)  The decision of the Superintendent under this section is final for all purposes.

Order requiring application for approval

7.  (1)  The Superintendent shall order every insurer that is subject to this Act to apply to the Superintendent for approval of,

(a) the risk classification system the insurer intends to use, as of the date specified in the order, in determining the rates for each coverage and category of automobile insurance specified in the order; and

(b) the rates the insurer intends to use, as of the date specified in the order, for each coverage and category of automobile insurance specified in the order.

When application due

(2)  An order of the Superintendent under subsection (1) shall direct the insurer to make the application no later than January 23, 2004 or such later day as the Superintendent may specify in the order, but the Superintendent shall not specify a day that is more than 30 days after January 23, 2004.

Application

(3)  On receipt of an order under subsection (1), an insurer shall make the application in a form approved by the Superintendent and shall, on or before the date specified in the order, file the application together with such information, material and evidence as the Superintendent may require in the order.

Not more than one application

(4)  An insurer shall not make more than one application under this section.

Additional information

(5)  The Superintendent may require an applicant to provide such additional information, material and evidence as the Superintendent considers necessary in order to make a decision with respect to the application.

Superintendent's powers

(6)  After considering an application and any additional information, material or evidence relating to the application, the Superintendent may do one or more of the following:

1. Approve all or part of the application.

2. Refuse to approve all or part of the application.

3. Require the applicant to reduce or otherwise vary one or more of its current or proposed rates.

4. Require the applicant to vary one or more of its current or proposed risk classification systems.

Criteria for refusing to approve or requiring reduction, etc.

(7)  The Superintendent shall refuse to approve all or part of an application and may require the applicant to reduce or otherwise vary a current or proposed rate or a current or proposed risk classification system if,

(a) the current or proposed risk classification system or current or proposed rate is not just and reasonable in the circumstances;

(b) the current or proposed risk classification system is not reasonably predictive of risk or does not distinguish fairly between risks;

(c) the current or proposed rate would impair the applicant's solvency; or

(d) the current or proposed rate is excessive in relation to the applicant's financial circumstances.

Written submissions

(8)  The Superintendent shall give the insurer an opportunity to make written submissions before making an order refusing to approve all or part of an application or requiring the insurer to reduce or otherwise vary one or more of its current or proposed rates or one or more of its current or proposed risk classification systems.

Time for making order

(9)  The Superintendent shall make an order in respect of an application under this section not more than 60 days after the later of,

(a) the day the application is filed; or

(b) the day the additional information, material or evidence is provided, if the Superintendent has required the applicant to provide additional information, material or evidence under subsection (5).

Effective date of order

(10)  An order of the Superintendent under this section takes effect on the date or dates specified in the order.

Order final

(11)  An order of the Superintendent under subsection (9) is final for all purposes.

Applications by affiliates

(12)  Section 414 of the Insurance Act applies with necessary modifications to applications under this section.

Insurers to charge authorized rate

8.  No insurer shall charge a rate in respect of a contract of automobile insurance that exceeds the authorized rate.

Deemed approval under the Insurance Act

9.  After the repeal of section 4, the rates and risk classification systems of an insurer as approved under section 7 shall, for the purposes of sections 410, 411, 412, 415 and 417 of the Insurance Act, be deemed to be the rates and risk classification systems approved for use by the insurer under the Insurance Act.

Superintendent may investigate

10.  The Superintendent may examine and investigate the affairs of an insurer to determine if the insurer is committing any act or pursuing a course of conduct that is a contravention of this Act or that might reasonably be expected to result in a situation that would constitute a contravention of this Act.

Superintendent's order after contravention of Act

11.  (1)  If, in the opinion of the Superintendent, an insurer is committing any act or pursuing a course of conduct that is a contravention of this Act or that might reasonably be expected to result in a situation that would constitute a contravention of this Act, the Superintendent may, without giving prior notice, make an order to take effect immediately on its making,

(a) requiring the insurer to cease doing or to refrain from doing any act or pursuing any course of conduct identified by the Superintendent;

(b) requiring the insurer to perform any act that, in the opinion of the Superintendent, is necessary to remedy the situation, including requiring an insurer to reimburse an insured in respect of any excess premium paid by the insured to the insurer by reason of the insurer's contravention of this Act; or

(c) suspending or cancelling the insurer's licence under the Insurance Act.

Reconsideration at request of insurer

(2)  At the request of an insurer that is the subject of an order under this section, the Superintendent shall, after giving the insurer an opportunity to make written submissions, reconsider the order.

Superintendent's powers

(3)  After reconsidering an order under this section, the Superintendent shall confirm, modify or revoke the order.

Order final

(4)  An order under this section may be reconsidered at the request of the insurer only once and, subject to the decision of the Superintendent after a reconsideration under subsection (2), is final for all purposes.

Offences

12.  (1)  Every insurer that does any of the following is guilty of an offence and on conviction 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:

1. Contravenes section 7 or 8.

2. Fails to comply with an order of the Superintendent made under section 11.

3. Directly or indirectly furnishes false, misleading or incomplete information, material or evidence to the Superintendent under this Act.

Derivative offence

(2)  Every director, officer and chief agent of an insurer is guilty of an offence who,

(a) causes, authorizes, permits or participates in the insurer committing an offence under this Act; or

(b) fails to take reasonable care to prevent the insurer from committing an offence under this Act.

Penalty on derivative offence

(3)  A person who is guilty of an offence under subsection (2) 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, whether the insurer is prosecuted for or convicted of an offence.

Restitution

(4)  If a person is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person convicted to make compensation or restitution in relation to the offence.

Notices

13.  Section 33 of the Insurance Act applies to documents required or permitted to be submitted under this Act and to orders made under this Act.

Repeal

14.  (1)  This Act is repealed on a day to be named by proclamation of the Lieutenant Governor.

Same

(2)  Any proclamation referred to in subsection (1) may apply to the whole or any part or parts or portion or portions or section or sections of this Act, and proclamations may be issued at different times as to any part or parts or portion or portions or section or sections of this Act.

Commencement

15.  (1)  Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2)  Sections 1, 2, 3, 4 and 8 shall be deemed to have come into force on October 23, 2003.

Short title

16.  The short title of this Act is the Automobile Insurance Rate Stabilization Act, 2003.

EXPLANATORY NOTE

This Explanatory Note was written as a reader's aid to Bill 5 and does not form part of the law. Bill 5 has been enacted as Chapter 9 of the Statutes of Ontario, 2003.

The Bill temporarily freezes automobile insurance rates for private passenger vehicles at the rates in effect on October 23, 2003 and suspends the approval of applications under the Insurance Act for rate changes while the Bill is in force.

An insurer may apply to the Superintendent of Financial Services for a rate increase if the insurer believes that it is just and reasonable in the circumstances having regard to the insurer's financial circumstances. The Superintendent shall not approve the insurer's proposed rate increase or a smaller increase unless the Superintendent finds that it is in the public interest and just and reasonable in the circumstances to do so, given the insurer's exceptional financial circumstances.

Every insurer affected by the freeze must apply to the Superintendent by January 23, 2004 or by a day specified by the Superintendent not more than 30 days after January 23, 2004 for approval of its risk classification system and rates. No rate or risk classification changes may be implemented without the Superintendent's prior approval. The Superintendent may approve a rate or require a rate to be reduced or otherwise varied.

Insurers that fail to comply with the Bill may be prosecuted, may have their licences suspended or cancelled under the Insurance Act and may be ordered to refund premiums charged in excess of authorized rates.

[38] Bill 5 Original (PDF)

Bill 5 2003

An Act to temporarily freeze
automobile insurance rates
for private passenger vehicles and to
provide for the review and regulation of
risk classification systems and
automobile insurance rates for
private passenger vehicles

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1.  In this Act,

"authorized rate" means, in respect of a contract of automobile insurance, the rate the insurer is authorized under this Act to charge on the issue or renewal of the contract; ("taux autorisé")

"automobile insurance" has the same meaning as in section 1 of the Insurance Act; (assurance-automobile")

"contract" has the same meaning as in section 1 of the Insurance Act; ("contrat")

"insurer" means a person who undertakes or agrees or offers to undertake a contract of automobile insurance and includes the Facility Association; ("assureur")

"Superintendent" means the Superintendent of Financial Services appointed under the Financial Services Commission of Ontario Act, 1997. ("surintendant")

Application of Act

2.  (1)  This Act applies to insurers and contracts of automobile insurance to which sections 410 to 417 of the Insurance Act would apply but for sections 4 and 5 of this Act.

Same

(2)  This Act does not apply to an insurer in respect of any category or coverage of automobile insurance for which the insurer is not required to make an application for approval under section 410 of the Insurance Act by reason of an exemption granted under subsection 413 (1) of that Act.

Facility Association

(3)  This Act applies to the Facility Association only with respect to the Personal Vehicles - Private Passenger Automobile category of automobile insurance.

Temporary insurance rate freeze

3.  Subject to sections 5, 6 and 7, every insurer, on issuing or renewing a contract of automobile insurance after October 22, 2003, shall use only the rate for each category and coverage of automobile insurance that was approved or was deemed to have been approved under the Insurance Act as of October 23, 2003.

Suspension of applications for approval

4.  (1)  Except as permitted under section 5, no insurer shall, while this section is in force,

(a) apply to the Superintendent for approval under section 410 of the Insurance Act; or

(b) submit a new application or resubmit an application to the Superintendent under subsection 411 (5) of the Insurance Act.

No applications to be approved

(2)  Except as permitted under section 5, the Superintendent shall not, while this section is in force, approve any application made under section 410 of the Insurance Act.

Superintendent deemed to have refused to approve

(3)  The Superintendent shall be deemed to have refused to approve any application made by an insurer under section 410 of the Insurance Act unless,

(a) the application was approved or was deemed to have been approved under that Act on or before October 23, 2003; or

(b) the application was made in accordance with section 5.

ss. 411, 412 and 412.1 of Insurance Act not applicable

(4)  Sections 411, 412 and 412.1 of the Insurance Act do not apply to any application for approval that the Superintendent is deemed under subsection (3) to have refused to approve.

Application for approval of first authorized rate

5.  (1)  An insurer shall apply for approval under section 410 of the Insurance Act and the Superintendent shall consider the application if,

(a) the insurer proposes to issue a contract of automobile insurance to which this Act applies; and

(b) there is no rate or risk classification system approved or deemed to have been approved under the Insurance Act as of October 23, 2003 for use by the insurer for the coverage or category of insurance to be provided by the insurer under the contract.

Prior application

(2)  The Superintendent shall consider an application for approval made under section 410 of the Insurance Act before section 4 came into force if the conditions described in clauses (1) (a) and (b) are satisfied.

Limitation on application

(3)  The following rules apply in respect of an application referred to in subsection (1) or (2):

1. The application shall be limited to the risk classification system and rates the insurer intends to use in respect of the coverages and categories provided under contracts to be issued after October 22, 2003 for which no rates or risk classification systems have been approved or deemed to have been approved under the Insurance Act as of October 23, 2003 for use by the insurer.

2. The application may only be made before the Superintendent orders the insurer to make an application under section 7.

3. Sections 411, 412 and 412.1 of the Insurance Act do not apply in respect of the application.

4. Subject to section 7, the Superintendent's decision with respect to the application is final for all purposes.

Application to charge higher rates

6.  (1)  An insurer may apply to the Superintendent for approval to charge rates that exceed the authorized rates if the insurer believes it is just and reasonable in the circumstances having regard to the insurer's financial circumstances, but the Superintendent shall not approve the application unless the criteria in clauses (2) (a) and (b) are satisfied.

Criteria for approving higher rate

(2)  The Superintendent shall not approve a rate proposed by the insurer or a rate that is less than the proposed rate but more than the authorized rate unless,

(a) the insurer demonstrates to the Superintendent's satisfaction that a rate exceeding the authorized rate is just and reasonable in the circumstances, having regard to the insurer's exceptional financial circumstances; and

(b) the Superintendent considers that it is in the public interest to approve a rate that exceeds the authorized rate.

Not more than one application

(3)  An insurer shall not make more than one application under this section.

When no application may be made

(4)  An insurer shall not make an application under this section if,

(a) the insurer has made an application referred to in section 5; or

(b) the Superintendent has ordered the insurer to make an application under section 7.

Material to be provided

(5)  The Superintendent may require an applicant to provide such information, material and evidence as the Superintendent considers necessary in order to make a decision with respect to the application.

Effective date of rate increase

(6)  A rate increase approved by the Superintendent under this section takes effect on the date or dates specified in the Superintendent's decision.

Decision final

(7)  The decision of the Superintendent under this section is final for all purposes.

Order requiring application for approval

7.  (1)  The Superintendent shall order every insurer that is subject to this Act to apply to the Superintendent for approval of,

(a) the risk classification system the insurer intends to use, as of the date specified in the order, in determining the rates for each coverage and category of automobile insurance specified in the order; and

(b) the rates the insurer intends to use, as of the date specified in the order, for each coverage and category of automobile insurance specified in the order.

When application due

(2)  An order of the Superintendent under subsection (1) shall direct the insurer to make the application no later than January 23, 2004 or such later day as the Superintendent may specify in the order, but the Superintendent shall not specify a day that is more than 30 days after January 23, 2004.

Application

(3)  On receipt of an order under subsection (1), an insurer shall make the application in a form approved by the Superintendent and shall, on or before the date specified in the order, file the application together with such information, material and evidence as the Superintendent may require in the order.

Not more than one application

(4)  An insurer shall not make more than one application under this section.

Additional information

(5)  The Superintendent may require an applicant to provide such additional information, material and evidence as the Superintendent considers necessary in order to make a decision with respect to the application.

Superintendent's powers

(6)  After considering an application and any additional information, material or evidence relating to the application, the Superintendent may do one or more of the following:

1. Approve all or part of the application.

2. Refuse to approve all or part of the application.

3. Require the applicant to reduce or otherwise vary one or more of its current or proposed rates.

4. Require the applicant to vary one or more of its current or proposed risk classification systems.

Criteria for refusing to approve or requiring reduction, etc.

(7)  The Superintendent shall refuse to approve all or part of an application and may require the applicant to reduce or otherwise vary a current or proposed rate or a current or proposed risk classification system if,

(a) the current or proposed risk classification system or current or proposed rate is not just and reasonable in the circumstances;

(b) the current or proposed risk classification system is not reasonably predictive of risk or does not distinguish fairly between risks;

(c) the current or proposed rate would impair the applicant's solvency; or

(d) the current or proposed rate is excessive in relation to the applicant's financial circumstances.

Written submissions

(8)  The Superintendent shall give the insurer an opportunity to make written submissions before making an order refusing to approve all or part of an application or requiring the insurer to reduce or otherwise vary one or more of its current or proposed rates or one or more of its current or proposed risk classification systems.

Time for making order

(9)  The Superintendent shall make an order in respect of an application under this section not more than 60 days after the later of,

(a) the day the application is filed; or

(b) the day the additional information, material or evidence is provided, if the Superintendent has required the applicant to provide additional information, material or evidence under subsection (5).

Effective date of order

(10)  An order of the Superintendent under this section takes effect on the date or dates specified in the order.

Order final

(11)  An order of the Superintendent under subsection (9) is final for all purposes.

Applications by affiliates

(12)  Section 414 of the Insurance Act applies with necessary modifications to applications under this section.

Insurers to charge authorized rate

8.  No insurer shall charge a rate in respect of a contract of automobile insurance that exceeds the authorized rate.

Deemed approval under the Insurance Act

9.  After the repeal of section 4, the rates and risk classification systems of an insurer as approved under section 7 shall, for the purposes of sections 410, 411, 412, 415 and 417 of the Insurance Act, be deemed to be the rates and risk classification systems approved for use by the insurer under the Insurance Act.

Superintendent may investigate

10.  The Superintendent may examine and investigate the affairs of an insurer to determine if the insurer is committing any act or pursuing a course of conduct that is a contravention of this Act or that might reasonably be expected to result in a situation that would constitute a contravention of this Act.

Superintendent's order after contravention of Act

11.  (1)  If, in the opinion of the Superintendent, an insurer is committing any act or pursuing a course of conduct that is a contravention of this Act or that might reasonably be expected to result in a situation that would constitute a contravention of this Act, the Superintendent may, without giving prior notice, make an order to take effect immediately on its making,

(a) requiring the insurer to cease doing or to refrain from doing any act or pursuing any course of conduct identified by the Superintendent;

(b) requiring the insurer to perform any act that, in the opinion of the Superintendent, is necessary to remedy the situation, including requiring an insurer to reimburse an insured in respect of any excess premium paid by the insured to the insurer by reason of the insurer's contravention of this Act; or

(c) suspending or cancelling the insurer's licence under the Insurance Act.

Reconsideration at request of insurer

(2)  At the request of an insurer that is the subject of an order under this section, the Superintendent shall, after giving the insurer an opportunity to make written submissions, reconsider the order.

Superintendent's powers

(3)  After reconsidering an order under this section, the Superintendent shall confirm, modify or revoke the order.

Order final

(4)  An order under this section may be reconsidered at the request of the insurer only once and, subject to the decision of the Superintendent after a reconsideration under subsection (2), is final for all purposes.

Offences

12.  (1)  Every insurer that does any of the following is guilty of an offence and on conviction 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:

1. Contravenes section 7 or 8.

2. Fails to comply with an order of the Superintendent made under section 11.

3. Directly or indirectly furnishes false, misleading or incomplete information, material or evidence to the Superintendent under this Act.

Derivative offence

(2)  Every director, officer and chief agent of an insurer is guilty of an offence who,

(a) causes, authorizes, permits or participates in the insurer committing an offence under this Act; or

(b) fails to take reasonable care to prevent the insurer from committing an offence under this Act.

Penalty on derivative offence

(3)  A person who is guilty of an offence under subsection (2) 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, whether the insurer is prosecuted for or convicted of an offence.

Restitution

(4)  If a person is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person convicted to make compensation or restitution in relation to the offence.

Notices

13.  Section 33 of the Insurance Act applies to documents required or permitted to be submitted under this Act and to orders made under this Act.

Repeal

14.  (1)  This Act is repealed on a day to be named by proclamation of the Lieutenant Governor.

Same

(2)  Any proclamation referred to in subsection (1) may apply to the whole or any part or parts or portion or portions or section or sections of this Act, and proclamations may be issued at different times as to any part or parts or portion or portions or section or sections of this Act.

Commencement

15.  (1)  Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.

Same

(2)  Sections 1, 2, 3, 4 and 8 shall be deemed to have come into force on October 23, 2003.

Short title

16.  The short title of this Act is the Automobile Insurance Rate Stabilization Act, 2003.

EXPLANATORY NOTE

The Bill temporarily freezes automobile insurance rates for private passenger vehicles at the rates in effect on October 23, 2003 and suspends the approval of applications under the Insurance Act for rate changes while the Bill is in force.

An insurer may apply to the Superintendent of Financial Services for a rate increase if the insurer believes that it is just and reasonable in the circumstances having regard to the insurer's financial circumstances. The Superintendent shall not approve the insurer's proposed rate increase or a smaller increase unless the Superintendent finds that it is in the public interest and just and reasonable in the circumstances to do so, given the insurer's exceptional financial circumstances.

Every insurer affected by the freeze must apply to the Superintendent by January 23, 2004 or by a day specified by the Superintendent not more than 30 days after January 23, 2004 for approval of its risk classification system and rates. No rate or risk classification changes may be implemented without the Superintendent's prior approval. The Superintendent may approve a rate or require a rate to be reduced or otherwise varied.

Insurers that fail to comply with the Bill may be prosecuted, may have their licences suspended or cancelled under the Insurance Act and may be ordered to refund premiums charged in excess of authorized rates.