AR 129/2001 ENFORCEMENT AND ADMINISTRATION REGULATION (Consolidated up to 39/2016)
ALBERTA REGULATION 129/2001
Insurance Act
ENFORCEMENT AND ADMINISTRATION REGULATION
Table of Contents
Administrative Penalties
                1      Prescribed provisions
                2      Notice of administrative penalty
                3      Amount of penalty
                4      Interest
Compensation Associations
            5, 6      Designation of compensation association
Repeals, Expiry and Coming into Force
                7      Repeal
                8      Expiry
                9      Coming into force
Schedule Administrative Penalties
Prescribed provisions
1(1)  Subject to subsection (2) the Minister may give a notice of administrative penalty under section 789 of the Act in respect of
                               (a)    a provision of the Act if the Act makes the contravention of that provision an offence, or
                              (b)    any of the provisions of the regulations that are listed in the Schedule to this Regulation.
(2)  The Minister shall not give a notice of administrative penalty to a holder or former holder of a certificate of authority in respect of any act or omission if the Minister also has a remedy against the holder or former holder under section 480 of this Act in respect of that act or omission.
Notice of administrative penalty
2   A notice of administrative penalty must contain the following information:
                               (a)    the name of the person required to pay the administrative penalty;
                              (b)    particulars of the contravention;
                               (c)    the amount of the administrative penalty and the time by which it must be paid.
Amount of penalty
3   The amount of an administrative penalty shall be determined by the Minister, who shall take into account the following factors:
                               (a)    the seriousness of the contravention;
                              (b)    the importance of the regulatory scheme of compliance with the provision;
                               (c)    the degree of wilfulness or negligence in the contravention;
                              (d)    whether or not there was any mitigation relating to the contravention;
                               (e)    whether or not steps have been taken to prevent reoccurrence of the contravention;
                               (f)    whether or not the person who receives the notice of administrative penalty has a history of non‑compliance;
                               (g)    whether or not the person who receives the notice of administrative penalty has derived any economic benefit from the contravention;
                              (h)    any other factors that, in the opinion of the Minister, are relevant.
Interest
4(1)  If an administrative penalty is not paid by the date specified in the notice, the person to whom the notice was given is liable for the payment of interest on the unpaid amount at the rate of 12% per year, running from the due date until the administrative penalty is fully paid.
(2)  An unpaid administrative penalty together with unpaid interest constitutes a debt owing to the Crown and may be recovered in an action in debt.
Compensation Associations
Designation of compensation association
5(1)  The Property and Casualty Insurance Compensation Corporation is designated as a compensation association for the following classes of insurance:
                               (a)    accident and sickness insurance in respect of policies issued by a property and casualty company that is also licensed to offer other classes of insurance;
                              (b)    automobile insurance;
                               (c)    boiler and machinery insurance;
                              (d)    credit protection insurance in respect of policies issued by a property and casualty company;
                               (e)    legal expense insurance;
                               (f)    liability insurance;
                               (g)    other approved products insurance;
                              (h)    product warranty insurance;
                               (i)    property insurance,
but those classes do not include crop insurance, directors’ and officers’ insurance or errors and omissions insurance.
AR 129/2001 s5;147/2011
Designation of compensation association
6   The Canadian Life and Health Insurance Compensation Corporation is designated as a compensation association for the following classes of insurance:
                               (a)    life insurance in respect of policies of that class issued by a life company other than a mutual benefit society or a fraternal society;
                              (b)    accident and sickness insurance in respect of policies issued by a life company or by a property and casualty insurer licensed to offer accident and sickness insurance only;
                               (c)    credit protection insurance in respect of policies issued by a life company.
AR 129/2001 s6;147/2011
Repeals, Expiry and Coming into Force
Repeal
7   The Compensation Associations and Classes of Insurance Regulation (AR 282/88) is repealed. Expiry
8   For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on April 30, 2018.
AR 129/2001 s8;99/2006;39/2016
Coming into force
9   This Regulation comes into force on the coming into force of any section of the Insurance Act (SA 1999 cI‑5.1).
Schedule  
Regulatory Provisions in Respect of Which an Administrative Penalty is Payable
1   Provincial Companies Regulation
                                       - sections 2, 3, 4, 5, 6, 7(1) and 14(2) and (3).
2   Replacement of Life Insurance Contracts Regulation
                                       - sections 2, 8 and 10.
3   Insurance Agents and Adjusters Regulation
                                       - sections 15(3), 18(2) and 28.
4   Fair Practices Regulation (AR 128/2001)
                                       - sections 2, 3 and 5(3).
5   Repealed AR 99/2006 s3.
6   Automobile Insurance Premiums Regulation
                                       - sections 2, 3, 4, 5, 6, 8, 11(1) and 12.
AR 129/2001 Sched.;382/2003;124/2004;99/2006;117/2014