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

Section 7 Disposition versions

2012-09-01

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.