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

Section 3 Disposition versions

2012-09-01

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.