Agents Bonding and Insurance Regulation

Agents Bonding and Insurance Regulation, M.R. 105/90 The Legal Profession Act , C.C.S.M. c. L107 Regulation 105/90 Registered May 18, 1990 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Application 3 Registrar 4 Penal bond required 5 Amount of bond 6 Notification of change 7 Cancellation of bond 8 Rights of government under bond 9 Forfeiture of bond 10 Payment of moneys recovered under bond 11 Insufficient bond proceeds 12 Disposition of unexpended moneys 13 No claims against bond 14 Judgments to be final 15 Errors and omissions insurance required 16 Amount of insurance 17 Evidence of insurance to be filed 18 Certificate as evidence 19 Coming into force Schedule Definitions 1 In this regulation, "Act" means The Legal Profession Act ; («  Loi  ») "agent" means (a) an individual carrying on business as a sole proprietor, a corporation or a partnership, or (b) an employee of a sole proprietor, corporation or partnership, who acts as an agent or provides legal advice to another person pursuant to section 40 of the Act; (« représentant ») "minister" means the Minister of Justice; (« ministre ») "registrar" means the person appointed as the registrar under section 3. (« registraire ») M.R. 115/2025 Application 2 For the purposes of section 40 of the Act, an agent shall meet the requirements as to bonding and insurance set out in this regulation. M.R. 115/2025 Registrar 3 The minister may by written order appoint a person under the responsibility of the minister to be the registrar for the purposes of this Act. BONDING REQUIREMENTS Penal bond required 4 An agent shall furnish to the registrar a penal bond in the form set out in the Schedule, issued by a surety company licensed to carry on business in Manitoba. Amount of bond 5 The bond referred to in section 4 shall be in an amount of not less than $2500. for each agent. Notification of change 6 Where the agent (a) is a corporation and a change occurs in the directors or officers of the corporation; or (b) is a partnership and a change occurs in the partners of the partnership; the agent shall file with the registrar evidence satisfactory to the registrar that the surety that bonded the person has been notified of the change. Cancellation of bond 7(1) A bond under section 4 may be cancelled by any person bound thereunder by giving at least three months' notice in writing of intention to cancel to the registrar, and the bond shall be deemed to be cancelled on the date stated in the notice, which date shall be not less than 3 months after the receipt of the notice by the registrar. 7(2) For the purpose of every claim arising out of the provision of services by an agent occurring during the period prior to the cancellation of the bond under subsection (1), every bond shall continue in force for a period of two years following the cancellation of the bond. 7(3) Where a bond has been cancelled and the bond has not been forfeited, the registrar may, two years after the cancellation of the bond deliver the bond to the person bound thereunder. Rights of government under bond 8 Notwithstanding that the government has not suffered any loss or damages, every bond delivered to the registrar under section 4 shall be construed as being a penal bond; and, where the bond is forfeited under section 9, the amount due and owing as a debt to the government by the person bound thereby shall be determined as if the government suffered such loss or damages as would entitle the government to be indemnified to the maximum amount of liability under the bond. Forfeiture of bond 9(1) A bond is liable to be forfeited, upon demand of the registrar, where (a) the agent in respect of whose conduct the bond is conditioned has been convicted of (i) an offence under the Act or the regulations, or (ii) an offence involving fraud, theft, breach of trust, conversion or conspiracy to commit an offence involving fraud, theft, breach of trust or conversion under the Criminal Code (Canada); (b) judgment in respect of a claim arising out of the provision of services by an agent has been given against the person in respect of whose conduct the bond is conditioned; or (c) the agent in respect of whose conduct the bond is conditioned commits an act of bankruptcy, and proceedings have been taken under the Bankruptcy Act (Canada); and the conviction, judgment, or order has become final by reason of lapse of time or of having been confirmed by the highest court to which an appeal may be taken. 9(2) If a bond becomes liable to forfeiture under subsection (1), the registrar may direct that it be forfeited either in whole or in part, by giving written notice to that effect to the person liable on the bond. 9(3) Upon receipt of notice under subsection (2), the person liable on the bond shall, if so directed in the notice, immediately pay to the Minister of Finance the proceeds of the bond or such lesser amount as may be directed by the registrar. Payment of moneys recovered under bond 10(1) The Minister of Finance shall deposit the proceeds in a trust account and shall thereafter, from time to time, at the direction of the registrar, pay the whole or any part of the proceeds, as directed, to a judgment creditor whose judgment is based upon a claim arising out of the provision of services by an agent. 10(2) The registrar shall not issue a direction to the Minister of Finance under subsection (1) except with the consent of the claimant and the person liable on the bond. Insufficient bond proceeds 11 Where the proceeds of the bond are insufficient to satisfy the total amount of all the judgments filed with the registrar within the two year period from the date of forfeiture, the registrar may distribute the proceeds of the bond among the judgment creditors on a pro rata basis. Disposition of unexpended moneys 12 When the proceeds of the bond exceed the total amount of the judgments filed with the registrar within the two year period from the date of forfeiture, the registrar may pay the remaining balance of the proceeds of the bond to the person who paid over the proceeds of the bond under subsection 9(3). No claims against bond 13 Where a bond has been forfeited and no judgment of a creditor has been filed with the registrar within the two year period from the date of forfeiture, the registrar may pay the proceeds of the bond to the person who paid over the proceeds of the bond under subsection 9(3). Judgments to be final 14(1) Only judgments of creditors that have become final prior to the expiration of the two year period from the date of forfeiture shall be eligible to share in the proceeds of the bond. 14(2) Notwithstanding subsection (1), where judgment has been obtained by a creditor but has not become final prior to the expiration of the two year period from the date of forfeiture, such amount may be held in trust for such creditor until the judgment becomes final. INSURANCE REQUIREMENTS Errors and omissions insurance required 15 An agent shall furnish to the registrar evidence of liability insurance coverage issued by an insurance company licensed to carry on business in Manitoba, for errors, omissions and negligence arising out of the performance of services under section 40 of the Act. M.R. 115/2025 Amount of insurance 16(1) An agent who is (a) an individual carrying on business as a sole proprietor; or (b) an employee of a sole proprietor, a corporation or a partnership; shall be insured in the minimum amount of $100,000. with a maximum deductible of $1000. per loss. 16(2) An agent that is (a) a corporation; or (b) a partnership; shall be insured in the minimum amount of $500,000. with a maximum deductible of $1,000. per loss. Evidence of insurance to be filed 17 An agent shall file with the registrar such evidence as the registrar may require establishing to the satisfaction of the registrar that the insurance is in place. GENERAL PROVISIONS Certificate as evidence 18 A certificate signed by the registrar certifying (a) that a person has filed or not filed any document or material required or permitted to be filed with the registrar; (b) the time when the facts upon which proceedings are based first came to the knowledge of the registrar; or (c) as to any other matter pertaining to the bonding or insurance requirements under section 40 of the Act or this regulation; is, without proof of the office or signature of the registrar, prima facie proof of the facts certified therein for all purposes in any action, proceeding or prosecution. M.R. 115/2025 Coming into force 19 This regulation comes into force on the same date that The Law Society Amendment Act (2) , S.M. 1989-90, c. 35 comes into force. SCHEDULE Penal Bond