C-48.1, r. 4 - Regulation respecting professional liability insurance for certified general accountants

Updated to 1 September 2012

This document has official status.

chapter C-48.1, r. 4

Regulation respecting professional liability insurance for certified general accountants

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. 46.

DIVISION I APPLICATION OF THE LIABILITY INSURANCE PLAN

1. The secretary of the Ordre professionnel des comptables généraux accrédités du Québec shall verify whether each member on the roll of the Order complies with the obligation prescribed in section 3 and shall inform the board of directors thereof.

O.C. 1645-92, s. 1.

2. The secretary of the Order shall make such recommendations as he considers appropriate to the board of directors and shall submit an annual report of his activities.

O.C. 1645-92, s. 2.

3. A member in private practice, practising alone or practising for the account of another member, a partnership of members or a separate organization, on a full-time or part-time basis, shall enroll in the group professional liability insurance contract subscribed to by the Order, referred to herein as the “insurance plan”.

O.C. 1645-92, s. 3.

4. A member who ceases private practice or who permanently ceases to practise his profession shall, before the date on which he ceases to practise, obtain the insurance coverage described in paragraph 4 of section 7 for a period of at least 3 years except where, for the last 3 years preceding the permanent cessation of practice, he was not required to enroll in the insurance plan or would not have been required to had this Regulation been in force.

O.C. 1645-92, s. 4.

DIVISION II INSURANCE PLAN

5. The Order shall take out an insurance plan with an insurer. The insurer shall issue a certificate of insurance to each member enrolled in the insurance plan contracted by the Order. A copy of the insurance policy shall be furnished to the member upon request in writing.

O.C. 1645-92, s. 5.

6. The insurance plan shall be approved by resolution of the board of directors and shall come into force on the date determined by the board of directors.

O.C. 1645-92, s. 6.

7. The insurance plan subscribed to by the Order shall contain the following minimum provisions applicable to each certificate:

(1)  the minimum amount of the guarantee must be $1,000,000 per claim and $3,000,000 for the aggregate of claims for the period covered by the guarantee;

(2)  an agreement by the insurer to pay, in place of the insured person, within the limits of the guarantee, any amount, excluding a deductible not exceeding $2,500, that the insured person may legally be required to pay to a third party as damages for any claim resulting from professional services and made during the period covered by the guarantee;

(3)  an agreement by the insurer to have the conduct of the legal proceeding of the insured person and to take up his defence in any action taken against him and to bear the costs and expenses of proceedings taken against him, including those of his defence and interest on convictions, in addition to the amounts covered by the guarantee;

(4)  an agreement by the insurer to issue, for a period of at least 3 years, to a member subject to section 4, an insurance policy for previous acts identical to the policy in force at the time, for a premium equal to the amount of the last annual premium paid;

(5)  the insurer may not deny coverage without giving notice in writing to both the insured person and the secretary at the same time;

(6)  the insurance plan must also offer, for an additional premium and on an optional basis, terms of coverage that are more advantageous;

(7)  an agreement by the insurer to notify the Order within 30 days following a modification, cancellation or non-renewal of the insurance plan;

(8)  an agreement by the insurer to notify the Order in the event it pays a sum of money owing in the performance of obligations under the insurance plan.

O.C. 1645-92, s. 7.

8. The exclusions generally included in professional liability insurance may be provided for in the insurance contract. Notwithstanding the foregoing, no exclusion respecting acts committed under the influence of narcotics, soporifics, drugs, alcohol or any other similar substance may be set up against a third party referred to in paragraph 2 of section 7 to whom the insured person is legally required to pay damages.

O.C. 1645-92, s. 8.

9. The insurance agreement shall cover professional services rendered or the failure to render professional services, before the insurance plan comes into force and up until the expiry of the period covered by the guarantee.

O.C. 1645-92, s. 9.

10. The Order shall collect the premiums and may make an agreement whereby the broker or the insurer collects the premiums on behalf of the Order.

O.C. 1645-92, s. 10.

DIVISION III TRANSITORY AND FINAL

11. A member must enroll in the insurance plan not later than 30 days after the insurance plan comes into force. A member who, at the time the insurance plan comes into force, already has insurance coverage for a guarantee that is at least equal to the limits provided herein, excluding deductibles, shall comply with this Regulation by keeping the insurance coverage in force until its expiry date, for a maximum duration of 1 year.

O.C. 1645-92, s. 11.

12. This Regulation replaces the Regulation of the Corporation professionnelle généraux licenciés du Québec respecting professional liability insurance (Decision 83-05-18).

O.C. 1645-92, s. 12.

13. (Omitted).

O.C. 1645-92, s. 13.

REFERENCES

O.C. 1645-92, 1992 G.O. 2, 5046

S.Q. 2008, c. 11, s. 212

S.Q. 2009, c. 35, s. 76