Insurance Enforcement and Administration Regulation

(Consolidated up to 158/2025) ALBERTA REGULATION 101/2022 Captive Insurance Companies Act Insurance Act INSURANCE ENFORCEMENT AND ADMINISTRATION REGULATION Table of Contents 1 Prescribed provisions 2 Notice of administrative penalty 3 Amount of penalty 4 Interest 5, 6 Designation of compensation association 7 Non‑application to captive insurance company policies 8 Repeal 9 Expiry 10 Coming into force Schedule Prescribed provisions 1 (1) Subject to subsection (2), the Minister may give a notice of administrative penalty under (a) section 789 of the Insurance Act in respect of (i) a provision of that Act if that Act makes the contravention of that provision an offence, or (ii) any of the provisions of the regulations that are listed as items 1 and 3 to 7 in the Schedule to this Regulation, or (b) section 57 of the Captive Insurance Companies Act in respect of (i) a provision of that Act if that Act makes the contravention of that provision an offence, or (ii) any of the provisions of the regulation listed as item 2 in the Schedule to this Regulation. (2) The Minister shall not give a notice of administrative penalty under section 789 of the Insurance Act to a holder or former holder of a certificate of authority under that Act in respect of any act or omission if the Minister also has a remedy against the holder or former holder under section 480 of that Act in respect of that act or omission. Notice of administrative penalty 2 A notice of administrative penalty must contain the following information: (a) the name of the person required to pay the administrative penalty; (b) particulars of the contravention; (c) the amount of the administrative penalty and the time by which it must be paid. Amount of penalty 3 The amount of an administrative penalty shall be determined by the Minister, who shall take into account the following factors: (a) the seriousness of the contravention; (b) the importance of the regulatory scheme of compliance with the provision; (c) the degree of wilfulness or negligence in the contravention; (d) whether or not there was any mitigation relating to the contravention; (e) whether or not steps have been taken to prevent reoccurrence of the contravention; (f) whether or not the person who receives the notice of administrative penalty has a history of non‑compliance; (g) whether or not the person who receives the notice of administrative penalty has derived any economic benefit from the contravention; (h) any other factors that, in the opinion of the Minister, are relevant. Interest 4 (1) If an administrative penalty is not paid by the date specified in the notice, the person to whom the notice was given is liable for the payment of interest on the unpaid amount at the rate of 12% per year, running from the due date until the administrative penalty is fully paid. (2) An unpaid administrative penalty together with unpaid interest constitutes a debt owing to the Crown and may be recovered in an action in debt. Designation of compensation association 5 The Property and Casualty Insurance Compensation Corporation is designated as a compensation association for the following classes of insurance: (a) accident and sickness insurance in respect of policies issued by a property and casualty company that is also licensed to offer other classes of insurance; (b) automobile insurance; (c) boiler and machinery insurance; (d) credit protection insurance in respect of policies issued by a property and casualty company; (e) legal expense insurance; (f) liability insurance; (g) other approved products insurance; (h) product warranty insurance; (i) property insurance, but those classes do not include crop insurance, directors’ and officers’ insurance or errors and omissions insurance. Designation of compensation association 6 Assuris is designated as a compensation association for the following classes of insurance: (a) life insurance in respect of policies of that class issued by a life company other than a mutual benefit society or a fraternal society; (b) accident and sickness insurance in respect of policies issued by a life company or by a property and casualty insurer licensed to offer accident and sickness insurance only; (c) credit protection insurance in respect of policies issued by a life company. Non‑application to captive insurance company policies 7 For greater certainty, sections 5 and 6 do not apply in respect of policies issued by a captive insurance company. Repeal 8 The Enforcement and Administration Regulation (AR 129/2001) is repealed. Expiry 9 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on January 31, 2027. Coming into force 10 This Regulation comes into force on the coming into force of section 82 of the Captive Insurance Companies Act . Schedule Regulatory Provisions in Respect of Which an Administrative Penalty is Payable 1 Automobile Insurance Premiums Regulation (AR 117/2014) — sections 2(1), 4(1), 5(1), 5.1, 6, 8, 9.2, 11(1) and 12. 2 Captive Insurance Companies Regulation (AR 100/2022) — sections 8(1), (2), (4), (5) and (6) and 10(3), (4), (5) and (6). 3 Fair Practices Regulation (AR 128/2001) — sections 2, 3 and 5(3). 4 Home Warranty Insurance Regulation (AR 225/2013) — section 4. 5 Insurance Agents and Adjusters Regulation (AR 122/2001) — sections 15(3), 18(2) and 28. 6 Provincial Companies Regulation (AR 124/2001) — sections 2, 3, 4(1) and (3), 5, 6(1), 7(1) and 14(2) and (3). 7 Replacement of Life Insurance Contracts Regulation (AR 127/2001) — sections 2, 8 and 10. AR 101/2022 Sched;150/2023;158/2025