C-48.1, r. 3 - Regulation respecting the professional liability insurance of certified management accountants of Québec

Updated to 1 September 2012

This document has official status.

chapter C-48.1, r. 3

Regulation respecting the professional liability insurance of certified management accountants of Québec

Chartered Professional Accountants Act

(chapter C-48.1, s. 2).

Professional Code

(chapter C-26, s. 93, par. d).

The former alphanumerical designation of this Regulation was: c. C-26, r. 26.

1. A member of the Ordre professionnel des comptables en management accrédités du Québec who practises full or part time in a private practice, on the member’s own account or for the account of a partnership of members, shall contribute to an insurance contract establishing coverage against any liability the member may incur as a result of faults or negligence committed in the practice of the profession.

The insurance contract may be entered into in the name of a partnership of members, but the coverage shall extend to each of the partners or employees individually.

Where a member employs other members, the coverage shall extend to each of the employed members individually.

O.C. 166-93, s. 1.

2. The amount of the coverage shall not be less than $250,000 per claim and $500,000 for all the claims submitted against the member during the period covered.

In the case of a partnership of members, the amount of the coverage per claim and for all the claims submitted against the partnership shall not be less than $250,000 multiplied by the number of partners or employees of the partnership, up to $1,000,000 per period of coverage. The same applies to a member who employs other members.

O.C. 166-93, s. 2.

3. The insurance contract shall provide that

(1)  the insurer agrees to pay instead of the member any damages, up to the amount of the coverage, less the deductible, that the member may be legally liable to pay in respect of a claim submitted during the period of coverage and resulting from faults or negligence committed by the member in the practice of the profession or committed by the member’s employees in the performance of their duties;

(2)  the insurer agrees to take up the member’s defence, to defend the member in any action brought against the member and to pay, in addition to the sums covered by the coverage, all the costs and expenses of the member’s defence, including costs and interest resulting from a conviction;

(3)  the insurer agrees to extend the coverage to any claim submitted during the 5 years following a period of coverage during which a member dies, ceases permanently to practise or ceases to practise the profession referred to in section 1;

(4)  the insurer agrees to issue, in favour of a member who ceases to practise in a private practice during the period of coverage, an insurance contract that covers the subsequent 5-year period and, with the necessary changes, meets the requirements of this section;

(5)  the insurer agrees to issue an insurance contract whose coverage extends to faults or negligence committed by the member in the private practice of the profession prior to the coming into force of the contract, until the expiry of the period of coverage;

(6)  the insurer agrees to extend the coverage automatically, without prior notification, to any member who becomes the partner or the employee of another member or of a partnership of members during the period of coverage;

(7)  the insurer agrees to notify the Order within 30 days following any change made to the insurance contract held by a member or by a partnership of members, or following any cancellation or non-renewal of such contract;

(8)  the insurer agrees to notify the Order where the insurer pays any sum of money to fulfill obligations under an insurance contract held by a member or a partnership of members; and

(9)  the insurer agrees to issue an insurance contract containing an exclusion whereby acts committed by the member of the member’s employees under the influence of narcotics, soporifics, drugs or alcohol are void as against the claimant. However, the insurance contract may contain the exclusions generally recognized in professional liability insurance.

O.C. 166-93, s. 3.

4. Where the Order purchases, for all or some of the members referred to in section 1, a liability insurance contract that meets the requirements of section 3, a member or a partnership of members shall participate in the group insurance contract in question.

The Order shall issue a certificate of insurance to each member or partnership of members, and a copy of the contract shall be issued where a member or a partnership of members applies for such copy in writing.

O.C. 166-93, s. 4.

5. Before 1 April each year, a member or a partnership of members shall submit to the secretary of the Order proof that the member or partnership of members holds an insurance contract which is in effect for a 12-month period from that date, which meets the requirements of this Regulation and for which the premium has been paid in full.

O.C. 166-93, s. 5.

6. Where a member or a partnership of members opens a professional office, proof that the member or partnership holds an insurance contract meeting the requirements of this Regulation and in effect until 1 April of the following year shall be sent to the secretary of the Order within 30 days.

O.C. 166-93, s. 6.

7. (Omitted).

O.C. 166-93, s. 7.

REFERENCES

O.C. 166-93, 1993 G.O. 2, 837