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O. Reg. 11/01: ASSESSMENT OF EXPENSES AND EXPENDITURES
filed January 25, 2001 under Financial Services Commission of Ontario Act, 1997, S.O. 1997, c. 28
Skip to contentONTARIO regulation 11/01
made under the
FINANCIAL SERVICES COMMISSION OF ONTARIO ACT, 1997
Made: January 24, 2001
Filed: January 25, 2001
Printed in The Ontario Gazette: February 10, 2001
ASSESSMENT OF EXPENSES AND EXPENDITURES
PART I
CREDIT UNIONS SECTOR
1. In this Part,
“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;
“assets” means, with respect to a credit union, the amount shown as the credit union’s total assets in the last Member Institution Return that was required to be filed with the Deposit Insurance Corporation of Ontario by the credit union before the start of the assessment period;
“credit union” means a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies;
“credit unions sector” means the entities referred to in clause (b) of the definition of “regulated sector” in section 1 of the Act;
“league” means a league to which the Credit Unions and Caisses Populaires Act, 1994 applies.
2. A credit union’s or league’s share of an assessment of the credit unions sector under section 25 of the Act shall be determined in accordance with the following rules:
1. Subject to rule 2, a credit union’s share of the assessment is,
i. $350, if the credit union’s assets are less than $250,000,
ii. $500, if the credit union’s assets are $250,000 or more but less than $500,000,
iii. $700, if the credit union’s assets are $500,000 or more, but less than $1 million,
iv. $1,400, if the credit union’s assets are $1 million or more, but less than $5 million,
v. $2,100, if the credit union’s assets are $5 million or more, but less than $10 million,
vi. $4,200, if the credit union’s assets are $10 million or more, but less than $25 million,
vii. $7,000, if the credit union’s assets are $25 million or more, but less than $50 million,
vii. $14,000, if the credit union’s assets are $50 million or more, but less than $100 million, or
viii. $20,900, if the credit union’s assets are $100 million or more.
2. If a credit union’s assets are $10 million or more, the credit union’s share of the assessment determined under rule 1 shall be increased by the amount determined in accordance with the following formula:
where,
|
A |
= |
the amount by which the credit union’s share of the assessment determined under rule 1 shall be increased,
|
|
B |
= |
the total of all expenses incurred and expenditures made by the Commission in respect of the credit union sector for the assessment period,
|
|
C |
= |
the total of the shares determined under rule 1 for the credit union and all other credit unions,
|
|
D |
= |
fees paid by the credit union sector during the assessment period to the Commission under the Act or to the Minister of Finance under the Credit Unions and Caisses Populaires Act, 1994,
|
|
E |
= |
the credit union’s assets,
|
|
F |
= |
the total of the assets of the credit union and all other credit unions that have assets of $10 million or more. |
3. A league’s share of the assessment is zero.
PART II
INSURANCE SECTOR
3. (1) In this Part,
“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;
“insurance sector” means the persons referred to in clause (c) of the definition of “regulated sector” in section 1 of the Act;
“property and casualty insurance” means insurance other than accident, sickness or life insurance.
(2) Words and expressions defined in section 1 of the Insurance Act have the same meaning in this Part.
(3) For the purpose of this Part,
(a) an insurer’s direct premiums for a class of insurance in a year are the premiums paid to the insurer in the year for that class of insurance, other than premiums for that class of insurance paid to the insurer in the year under agreements for reinsurance; and
(b) an insurer’s net premiums for a class of insurance in a year are the premiums paid to the insurer in the year for that class of insurance, including premiums for that class of insurance paid to the insurer in the year under agreements for reinsurance, less premiums for that class of insurance paid by the insurer in the year under agreements for reinsurance.
(4) For the purposes of this Part, an evaluation was not commenced through the Ontario Insurance Commission or the Financial Services Commission of Ontario if it was conducted by a private neutral evaluator.
4. (1) Subject to subsection (2), an insurer’s share of an assessment of the insurance sector under section 25 of the Act shall be determined in accordance with the following rules:
1. The total amount to be used in determining shares of the assessment shall be equal to the total of all expenses incurred and expenditures made by the Commission in respect of the insurance sector for the assessment period.
2. Calculate the expenses incurred and expenditures made in respect of automobile insurance, in accordance with the following formula:
where,
|
D |
= |
the expenses incurred and expenditures made in respect of automobile insurance,
|
|
E |
= |
the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period for automobile insurance dispute resolution activity,
|
|
F |
= |
the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period for the Commission’s Accident Benefits Analysis Unit,
|
|
G |
= |
the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period in respect of insurance rates, classifications and actuarial activities,
|
|
H |
= |
the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period for the Commission’s Office of the Insurance Ombudsman. |
3. Calculate the total assessment for mediations under section 280 of the Insurance Act, in accordance with the following formula:
B = C ´ $500
where,
|
B |
= |
the total assessment for mediations under section 280 of the Insurance Act,
|
|
C |
= |
the total number of mediations under section 280 of the Insurance Act where, during the assessment period, a mediator filed a report at the conclusion of the mediation process outlining the status of the issues in dispute filed by the parties. |
4. Calculate the total assessment for evaluations under section 280.1 of the Insurance Act, in accordance with the following formula:
I = J ´ $1,000
where,
|
I |
= |
the total assessment for evaluations under section 280.1 of the Insurance Act,
|
|
J |
= |
the total number of evaluations commenced through the Financial Services Commission of Ontario under section 280.1 of the Insurance Act that were commenced during the assessment period. |
5. Calculate the total assessment for arbitrations under section 282 of the Insurance Act, in accordance with the following formula:
K = (L ´ $2,000) + (M ´ $3,000)
where,
|
K |
= |
the total assessment for arbitrations under section 282 of the Insurance Act,
|
|
L |
= |
the total number of arbitrations commenced under section 282 of the Insurance Act during the assessment period in respect of which an evaluation was commenced through the Ontario Insurance Commission or the Financial Services Commission of Ontario under section 280.1 of that Act before the issues in dispute were referred to an arbitrator,
|
|
M |
= |
the total number of arbitrations commenced under section 282 of the Insurance Act during the assessment period in respect of which an evaluation was not commenced through the Ontario Insurance Commission or the Financial Services Commission of Ontario under section 280.1 of that Act before the issues in dispute were referred to an arbitrator. |
6. Calculate the total assessment for appeals under section 283 of the Insurance Act, in accordance with the following formula:
N = P ´ $500
where,
|
N |
= |
the total assessment for appeals under section 283 of the Insurance Act,
|
|
P |
= |
the total number of appeals commenced under section 283 of the Insurance Act during the assessment period. |
7. Calculate the total assessment for applications under section 284 of the Insurance Act, in accordance with the following formula:
Q = R ´ $500
where,
|
Q |
= |
the total assessment for applications under section 284 of the Insurance Act,
|
|
R |
= |
the total number of applications commenced under section 284 of the Insurance Act during the assessment period. |
8. Calculate the insurer’s automobile insurance share of the assessment, in accordance with the following formula:
where,
|
S |
= |
the insurer’s automobile insurance share of the assessment,
|
|
T |
= |
the insurer’s direct premiums for automobile insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,
|
|
D |
= |
the expenses incurred and expenditures made in respect of automobile insurance, calculated under rule 2,
|
|
B |
= |
the total assessment for mediations under section 280 of the Insurance Act, calculated under rule 3,
|
|
I |
= |
the total assessment for evaluations under section 280.1 of the Insurance Act, calculated under rule 4,
|
|
K |
= |
the total assessment for arbitrations under section 282 of the Insurance Act, calculated under rule 5,
|
|
N |
= |
the total assessment for appeals under section 283 of the Insurance Act, calculated under rule 6, |
|
Q |
= |
the total assessment for applications under section 284 of the Insurance Act, calculated under rule 7,
|
|
U |
= |
the total, for all insurers licensed for automobile insurance during the assessment period, of all direct premiums for automobile insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period. |
9. Calculate the amount to be recovered with respect to activities other than automobile insurance, in accordance with the following formula:
V = A - D - W
where,
|
V |
= |
the amount to be recovered with respect to activities other than automobile insurance,
|
|
A |
= |
the total amount to be used in determining shares of the assessment, as set out in rule 1, |
|
D |
= |
the expenses incurred and expenditures made in respect of automobile insurance, calculated under rule 2, |
|
W |
= |
the total revenue collected during the assessment period by the Financial Services Commission of Ontario and the Minister of Finance under the Insurance Act and the Prepaid Hospital and Medical Services Act, other than taxes paid under section 391 of the Insurance Act and assessments paid under section 14.1 of the Insurance Act. |
10. If the insurer is licensed for property and casualty insurance during the assessment period, calculate the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, in accordance with the following formula:
where,
|
X |
= |
the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, |
|
V |
= |
the amount to be recovered with respect to activities other than automobile insurance, calculated under rule 9, |
|
Y |
= |
the total, for all insurers that are licensed for property and casualty insurance during the assessment period and that are incorporated or organized under the laws of Ontario and are not members of the Fire Mutuals Guarantee Fund, of all net premiums for property and casualty insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period, |
|
Z |
= |
the total, for all insurers that are licensed for property and casualty insurance during the assessment period and that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, of all net premiums for property and casualty insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period. |
11. If the insurer is licensed for property and casualty insurance during the assessment period and is a member of the Fire Mutuals Guarantee Fund or is incorporated or organized under the laws of a foreign jurisdiction, calculate the insurer’s property and casualty insurance share of the assessment, in accordance with the following formula:
where,
|
AA |
= |
the insurer’s property and casualty insurance share of the assessment, |
|
BB |
= |
the insurer’s net premium for property and casualty insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period, |
|
X |
= |
the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, calculated under rule 10. |
12. If the insurer is licensed for property and casualty insurance during the assessment period, is incorporated or organized under the laws of Ontario and is not a member of the Fire Mutuals Guarantee Fund, calculate the insurer’s property and casualty insurance share of the assessment, in accordance with the following formula:
CC = DD ´ (X + 0.0004)
where,
|
CC |
= |
the insurer’s property and casualty insurance share of the assessment, |
|
DD |
= |
the insurer’s net premiums for property and casualty insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period, |
|
X |
= |
the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, calculated under rule 10. |
13. If the insurer is licensed for accident, sickness or life insurance during the assessment period, calculate the accident, sickness and life insurer assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions, in accordance with the following formula:
where,
|
EE |
= |
the accident, sickness and life insurer assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions, |
|
V |
= |
the amount to be recovered with respect to activities other than automobile insurance, calculated under rule 9, |
|
FF |
= |
the total, for all insurers incorporated or organized under the laws of Ontario that are licensed for accident, sickness or life insurance during the assessment period, of all net premiums for accident, sickness and life insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period, |
|
GG |
= |
the total, for all insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident, sickness or life insurance during the assessment period, of all net premiums for accident, sickness and life insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period. |
14. If the insurer is incorporated or organized under the laws of a foreign jurisdiction and is licensed for accident, sickness or life insurance during the assessment period, calculate the insurer’s accident, sickness and life insurance share of the assessment, in accordance with the following formula:
HH = II ´ EE
where,
|
HH |
= |
the insurer’s accident, sickness and life insurance share of the assessment, |
|
II |
= |
the insurer’s net premiums for accident, sickness and life insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period, |
|
EE |
= |
the accident, sickness and life insurer assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions, calculated under rule 13. |
15. If the insurer is incorporated or organized under the laws of Ontario and is licensed for accident, sickness or life insurance during the assessment period, calculate the insurer’s accident, sickness and life insurance share of the assessment, in accordance with the following formula:
JJ = KK ´ (EE + 0.0004)
where,
|
JJ |
= |
the insurer’s accident, sickness and life insurance share of the assessment, |
|
KK |
= |
the insurer’s net premiums for accident, sickness and life insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,
|
|
EE |
= |
the accident, sickness and life insurer assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions, calculated under rule 13. |
16. Calculate the sum of the following amounts that apply to the insurer:
i. The insurer’s automobile insurance share of the assessment, calculated under rule 8.
ii. The insurer’s property and casualty insurance share of the assessment, calculated under rule 11 or 12.
iii. The insurer’s accident, sickness and life insurance share of the assessment, calculated under rule 14 or 15.
17. The insurer’s share of the assessment under section 25 of the Act is equal to the greater of the amount calculated under rule 16 and,
i. $1,000, if the insurer is not a fraternal society, or
ii. $100, if the insurer is a fraternal society.
(2) An insurer’s share of an assessment calculated under subsection (1) shall be increased by,
(a) $500 for each mediation to which the insurer is a party under section 280 of the Insurance Act where, during the assessment period, a mediator files a report at the conclusion of the mediation process outlining the status of the issues in dispute filed by the parties;
(b) $1,000 for each evaluation to which the insurer is a party that is commenced through the Financial Services Commission of Ontario under section 280.1 of the Insurance Act during the assessment period;
(c) $2,000 for each arbitration to which the insurer is a party that is commenced under section 282 of the Insurance Act during the assessment period, if an evaluation was commenced through the Ontario Insurance Commission or the Financial Services Commission of Ontario under section 280.1 of that Act before the issues in dispute were referred to the arbitrator;
(d) $3,000 for each arbitration to which the insurer is a party that is commenced under section 282 of the Insurance Act during the assessment period, if an evaluation was not commenced through the Ontario Insurance Commission or the Financial Services Commission of Ontario under section 280.1 of that Act before the issues in dispute were referred to the arbitrator;
(e) $500 for each appeal to which the insurer is a party that is commenced under section 283 of the Insurance Act during the assessment period; and
(f) $500 for each application to which the insurer is a party that is commenced under section 284 of the Insurance Act during the assessment period.
PART III
LOAN AND TRUST SECTOR
5. In this Part,
“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;
“assets” includes, with respect to a trust corporation as defined in the Loan and Trust Corporations Act, the aggregate of company funds, guaranteed funds and assets held for administration under estates and trusts;
“loan or trust corporation” means a corporation registered or incorporated under the Loan and Trust Corporations Act;
“loan and trust sector” means the persons referred to in clause (d) of the definition of “regulated sector” in section 1 of the Act.
6. A loan or trust corporation’s share of an assessment of the loan and trust sector under section 25 of the Act shall be determined in accordance with the following rules:
1. Calculate the total amount to be used in determining shares of the assessment, in accordance with the following formula:
A = G - B
where,
|
A |
= |
the total amount to be used in determining shares of the assessment, |
|
G |
= |
the total of all expenses incurred and expenditures made by the Commission in respect of the loan and trust sector for the assessment period, |
|
B |
= |
fees paid by the loan and trust sector during the assessment period to the Commission under the Act or to the Minister of Finance under the Loan and Trust Corporations Act. |
2. Subject to rule 3, the loan or trust corporation’s share of the assessment is,
i. $10,000, if the corporation is incorporated in Ontario and has assets of less than $100 million,
ii. $15,000, if the corporation is incorporated in Ontario and has assets of $100 million or more but less than $1 billion,
iii. $20,000, if the corporation is incorporated in Ontario and has assets of $1 billion or more, or
iv. $1,500 if the corporation is not incorporated in Ontario.
3. The loan or trust corporation’s share of the assessment under rule 2 shall be increased by the amount determined in accordance with the following formula:
where,
|
C |
= |
the amount by which the corporation’s share of the assessment determined under rule 2 shall be increased, |
|
|
A |
= |
the total amount to be used in determining shares of the assessment, calculated under rule 1, |
|
|
D |
= |
the total of the shares determined under rule 2 for the corporation and all other loan or trust corporations, |
|
|
E |
= |
the corporation’s assets, |
|
|
F |
= |
the total of the assets of the corporation and all other loan or trust corporations. |
|
PART IV
APPLICATION
7. This Regulation applies in respect of assessments under section 25 of the Act that relate to expenses incurred and expenditures made after March 31, 2000.
PART V
REVOCATIONS
8. Ontario Regulations 300/98, 519/99 and 173/00 are revoked.