An Act to Implement Changes to The Compulsory Automobile Insurance Act, The Highway Traffic Act and Amend the Vicarious Liability Rules for Lessors in Ontario

On March 1st, 2006, Bill 18 will become effective.

As a major provider of insurance solutions to the Dealer, Leaseco, Daily Rental and Financial Institution community, and as a member of the Canadian Finance and Leasing Association (CFLA), HKMB is actively involved in reviewing and analyzing changes to legislation that affect our clients' businesses.

HKMB's analysis of Bill 18 determined that because of various changes made to definitions under the Highway Traffic Act and the Compulsory Automobile Insurance Act, policy forms which affect the insurance exposures for Lessors must be reviewed. Specifically, this would include the Lessors' Contingent Automobile Liability Policy (SEF #8) and the application of various Automobile Endorsements (OPCF #5, OPCF #5C,OPCF #27).

As a result of our findings, HKMB has been requested to provide input to the changes at a meeting with the Insurance Bureau of Canada and various insurance company representatives on February 28th, 2006.

We will report on the results of these discussions as soon as possible. HKMB's goal in the discussions is to advocate our clients' interests by ensuring that the exposures to Dealers/Lessors/Rental Car Operators and Financial Institutions are minimized by the amendments now being made.

Should you have any questions or concerns on this matter, contact Don McDonald, Partner, Automotive and Equipment Solutions.