C-26, r. 55 - Regulation respecting the practice of the certified general accountancy profession within a partnership or joint-stock company

Section 11 Disposition versions

2012-09-01

11. The following minimum conditions for the security must be set out in a specific rider or contract:

(1)  an undertaking by the insurer or surety to pay in lieu of the partnership or joint-stock company, over and above the amount of the security to be furnished by the member pursuant to the Regulation respecting professional liability insurance for certified general accountants (chapter C-26, r. 46), or the coverage taken out by a member if it is greater, up to the amount of the security, any sum that the partnership or joint-stock company may be legally bound to pay to an injured third person on a claim filed during the coverage period and arising from fault or negligence on the part of the member in the practice of the profession;

(2)  an undertaking by the insurer or surety to take up the cause of the partnership or joint-stock company and defend it in any action against it and to pay, in addition to the amounts covered by the security, all legal costs of actions against the partnership or joint-stock company, including the costs of the inquiry and defence and interest on the amount of the security;

(3)  an undertaking that the security extends to all claims submitted in the 3 years following the coverage period during which a member of the partnership or joint-stock company has died, withdrawn from the partnership or joint-stock company or ceased to be a member of the Order, in order to maintain coverage for the partnership or joint-stock company for fault or negligence on the part of the member in the practice of the profession within the partnership or joint-stock company;

(4)  an amount of at least $1,000,000 per claim for all claims filed against the partnership or joint-stock company during a 12-month coverage period;

(5)  where a member is a sole practitioner, as the sole shareholder of a joint-stock company in which no other member of the Order is an employee, the coverage must be at least $500,000 per claim for all claims filed against the joint-stock company during a 12-month coverage period;

(6)  an undertaking by the insurer or surety to provide the secretary of the Order with a 30-day notice of intent to cancel the insurance or suretyship contract, to amend a condition of this section or not to renew the contract; and

(7)  an undertaking by the insurer or surety to provide the secretary of the Order with a notice that the insurance or suretyship contract has not been renewed; the notice must be sent within 15 days following the expiry of the contract.

O.C. 1094-2005, s. 11.