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Statutes of Newfoundland 1993


CHAPTER 24

CHAPTER 24

AN ACT TO AMEND THE INSURANCE
ADJUSTERS, AGENTS AND BROKERS ACT

(Assented to June 18, 1993)

Analysis

1. S.2 Amdt.
Definitions

2. S.5 Amdt.
Qualifications and requirements

3. S.8 Amdt.
Students

4. S.11 Rep.
Non-residents

5. S.13 Amdt.
Prohibition re licences

6. S.24 Amdt.
Special licence

7. S.30.1 Added
Exemption from S.30

8. Ss. 43.1 and 43.2 Added
43.1 Order for compliance
43.2 Property held in trust

9. S.45 Amdt.
Offence

10. S.46 R&S
Penalty

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


RSN 1990 cI-9 as amended

1. Section 2 of the Insurance Adjusters, Agents and Brokers Act is amended by adding immediately after paragraph (u) the following:

(u.1) "minister" means the Minister of Justice;

2. Section 5 of the Act is amended by adding immediately after subsection (3) the following:

(4) Every licensee shall be covered by a policy of errors and omissions insurance and other insurance in an amount that may be prescribed by the regulations.

3. Subsection 8(6) of the Act is repealed.

4. Section 11 of the Act is repealed.

5. (1) Subsection 13(1) is amended by deleting the words "or to a licensed real estate agent or real estate broker or their employees".

(2) Subsection 13(2) is amended by deleting the words "or to a licensed real estate agent or real estate broker or its employees".

6. Subsection 24(8) of the Act is repealed.

7. The Act is amended by adding immediately after section 30 the following:

Exemption from S.30

30.1 A person may make application to the minister for an exemption from the requirements in section 30 and the minister may exempt the applicant in whole or in part for a period not to exceed 12 months from the date of proclamation of the Insurance Adjusters, Agents and Brokers Act.

8. The Act is amended by adding immediately after section 43 the following:

Order for compliance

43.1 (1) Where it appears to the superintendent that a person is not complying with a provision of this Act or the regulations the superintendent may make an order directing that person to comply with the provision.

(2) An appeal lies to the minister from an order made under subsection (1).

(3) Where it appears to the superintendent that a person has failed to comply with or is not complying with

(a) an order, decision, direction or inquiry made under this Act;

(b) an undertaking given; or

(c) a term, condition or restriction imposed on a licence, where applicable,

the superintendent may, in addition to any other right under this Act, apply to a judge of the Trial Division for an order directing the person to comply with or restraining the person from violating the order, decision, direction, inquiry, undertaking, term, condition or restriction, and the judge may make an order that he or she considers appropriate.

(4) An appeal lies to the Court of Appeal from an order made under subsection (3).

Property held in trust

43.2 (1) Where the superintendent believes that a licensee has been or may be guilty of misconduct in connection with property in the licensee's possession or under the licensee's control, the minister may, upon the report of the superintendent, order that the property described in the order shall not be paid out or dealt with by the person named in the order without the approval of the minister.

(2) Where the superintendent believes that the business of a licensee or former licensee is neglected to the prejudice of a person or that the interests of the clients of the licensee or former licensee are not being protected or that the licensee or former licensee has converted trust funds, the minister may, upon the report of the superintendent, by order appoint a person as trustee to take possession of property or an undertaking in the possession of or under the control of the licensee or former licensee for the purpose of preserving, carrying on or winding up the business of the licensee or former licensee.

(3) A person appointed under subsection (2) shall be the trustee in respect of a trust property of the licensee or former licensee, and the person shall in respect of that trust property take the place of a personal representative, committee or other representative of the licensee or former licensee.

(4) A licensee or former licensee may appeal to the Trial Division in accordance with the Rules of Court, from an order made by the minister under this section within 30 days after the delivery of a copy of the order to the licensee or former licensee or an officer.

(5) The minister may, in an order made under subsection (2), make provision for the remuneration, disbursements and indemnification of the trustee out of that money or otherwise as the minister may specify.

9. (1) Subsection 45(4) of the Act is repealed.

(2) Section 45 is further amended by adding immediately after subsection (13) the following:

(14) Every person who fails to comply with a requirement of or an order or direction made under this Act is guilty of an offence.

10. Section 46 of the Act is repealed and the following substituted:

Penalty

46. (1) On conviction for an offence under this Act, the person convicted is liable on a 1st 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 in default of payment to a period of imprisonment of not more than 6 months.

(2) Every director or officer of a corporation and every person acting in a similar capacity or performing similar functions in an unincorporated association and every member of a partnership, who,

(a) caused, authorized, permitted or participated in an individual, corporation, unincorporated association or partnership committing an offence referred to in section 45; or

(b) failed to take reasonable care to prevent an individual, corporation, unincorporated association or partnership from committing an offence referred to in section 45,

is guilty of an offence and is liable on a 1st 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 in default of payment to a period of imprisonment of not more than 6 months whether or not the individual, corporation, unincorporated association or partnership has been prosecuted for or convicted of the offence.

(3) Where a person is convicted of an offence under this Act, the court making the conviction may, in addition to another penalty, order the person convicted to make compensation or restitution.

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