A-32.1 - Insurers Act

Section 493 Disposition versions

2019-06-13

493. A monetary administrative penalty of $1,000 in the case of a natural person and $5,000 in any other case may be imposed on

(1)  an authorized insurer

(a)  that holds contributed capital securities issued by a legal person or partnership, participations in a trust or a share in a co-ownership acquired in contravention of the limits prescribed by section 84 without such holdings being authorized by section 85,

(b)  that, in contravention of section 89, is not a member, for the classes for which it is authorized to carry on an activity, of a compensation body recognized by the Authority for those classes,

(c)  more than half of whose board of directors, in contravention of section 98, is not composed of persons other than its employees or employees of a group of which it is the holder of control,

(d)  for which no actuary or auditor, in contravention of section 115, has been charged with the functions provided for in Chapter VII of Title II or for which an actuary or auditor has been charged with those functions but does not have the qualifications required under section 116,

(e)  that, in contravention of any of sections 149 to 154, fails to notify the Authority of any of the operations described in section 146, sends the Authority an incomplete notice of intention or fails to comply with the time limit prescribed by section 148 for filing the notice of intention, or

(f)  that, in contravention of section 21, carries on insurer activities in a class not covered by the authorization it has been granted by the Authority;

(2)  the authorized mandatary of a reciprocal union that, in contravention of section 190, fails to send the Authority a contract referred to in section 188, when it is amended;

(3)  an insurance company

(a)  that has outstanding debt obligations issued in contravention of section 242 or whose movable property is charged with a hypothec or other security granted in contravention of section 243,

(b)  that has outstanding shares that were issued without being fully paid, in contravention of section 244 or 257, as the case may be, or

(c)  whose board of directors, in contravention of section 266, is not composed of a majority of directors who are resident in Québec;

(4)  a self-regulatory organization whose board of directors has not, in contravention of section 354, established a professional liability insurance decision-making committee or has established one whose composition of contravenes section 361 or 363; or

(5)  a federation of mutual companies

(a)  more than one-third of whose board of directors, in contravention of section 397, is made up of general managers of member companies,

(b)  for which no auditor, in contravention of sections 115 and 448, has been charged with the functions provided for in Chapter VII of Title II or for which an auditor has been charged with those functions but does not have the qualifications required under section 116,

(c)  that, in contravention of section 417, has not determined the amount of the capital that must be maintained in its guarantee fund,

(d)  that fails to inspect its member companies’ affairs as required under section 442, or

(e)  whose books and accounts are not audited annually in contravention of section 446.

2018, c. 23, s. 3.

Not in force

In force: 2019-06-13

493. A monetary administrative penalty of $1,000 in the case of a natural person and $5,000 in any other case may be imposed on

(1)  an authorized insurer

(a)  that holds contributed capital securities issued by a legal person or partnership, participations in a trust or a share in a co-ownership acquired in contravention of the limits prescribed by section 84 without such holdings being authorized by section 85,

(b)  that, in contravention of section 89, is not a member, for the classes for which it is authorized to carry on an activity, of a compensation body recognized by the Authority for those classes,

(c)  more than half of whose board of directors, in contravention of section 98, is not composed of persons other than its employees or employees of a group of which it is the holder of control,

(d)  for which no actuary or auditor, in contravention of section 115, has been charged with the functions provided for in Chapter VII of Title II or for which an actuary or auditor has been charged with those functions but does not have the qualifications required under section 116,

(e)  that, in contravention of any of sections 149 to 154, fails to notify the Authority of any of the operations described in section 146, sends the Authority an incomplete notice of intention or fails to comply with the time limit prescribed by section 148 for filing the notice of intention, or

(f)  that, in contravention of section 21, carries on insurer activities in a class not covered by the authorization it has been granted by the Authority;

(2)  the authorized mandatary of a reciprocal union that, in contravention of section 190, fails to send the Authority a contract referred to in section 188, when it is amended;

(3)  an insurance company

(a)  that has outstanding debt obligations issued in contravention of section 242 or whose movable property is charged with a hypothec or other security granted in contravention of section 243,

(b)  that has outstanding shares that were issued without being fully paid, in contravention of section 244 or 257, as the case may be, or

(c)  whose board of directors, in contravention of section 266, is not composed of a majority of directors who are resident in Québec;

(4)  a self-regulatory organization whose board of directors has not, in contravention of section 354, established a professional liability insurance decision-making committee or has established one whose composition of contravenes section 361 or 363; or

(5)  a federation of mutual companies

(a)  more than one-third of whose board of directors, in contravention of section 397, is made up of general managers of member companies,

(b)  for which no auditor, in contravention of sections 115 and 448, has been charged with the functions provided for in Chapter VII of Title II or for which an auditor has been charged with those functions but does not have the qualifications required under section 116,

(c)  that, in contravention of section 417, has not determined the amount of the capital that must be maintained in its guarantee fund,

(d)  that fails to inspect its member companies’ affairs as required under section 442, or

(e)  whose books and accounts are not audited annually in contravention of section 446.

2018, c. 23, s. 3.