Meeting - Thursday, June 1, 2000, 9:30 a.m. to 11:30 a.m. FSCO - 14th Floor, room 1 & 2

AGENDA

1. Review and Approval of Minutes from Previous Meeting - March 1, 2000
2. Staffing and Workload Issues
3. Statistics
4. Status of Practice Code Revisions
5. Status of Outreach Education Program
6. Minister's announcement of merger between FSCO & OSC in Budget
7. Snowmobiles - Phil Thorpe
8. Lost Wages - Phil Thorpe
9. Section 398(1) of the Insurance Act - Mike De La Haye
10. Issue of the Companies Forum Mandate
11. Copy of Decision: Bozena Pelzner and Peter Pelzner and Coseco Insurance Co./HB Group/Direct Protect
12. Other Business
13. Next Meetings: - September 6, 2000

MINUTES OF MEETING June 1, 2000

Attendees:
Brad Barber, Allstate
Mary Wright, Royal & Sun Alliance
Martine Sliva, ING Halifax
Phil Thorpe, The Co-operators
Christine Pollard, CGU Group
Jan Mackintosh, Registrar, DRG, FSCO
Cassandra Phillips, Axa
Sharon Clark, Axa
Lawrence Blackman, FSCO, DRG
Mike De La Haye, Wawanesa
Ann Shewchuk, Economical
Barbara Dudzinski, FSCO
Roberto Pegoraro, FSCO (Observer)
Eric Endicott, FSCO (Observer)
Mavis Haws, Dominion

1. Staffing and Work Load
   
   Due to the increased workload in the mediation department, there has been a number of changes with regards to staffing including the hiring of contract mediators. Barbara Dudzinski will forward an updated copy of the mediation and arbitration staff list to the DRG company's forum members.
   
   Lawrence Blackman indicated that pre-hearing and hearing dates in the arbitration unit are available within 4-6 weeks. Nancy Makepeace will be returning to the arbitration unit, and Stewart McMahon will be moving into the Director's Delegate area for the next 5 ½ months. There are currently 17 arbitrators on staff, 11 of which are permanent, and six of which are contract.
   
   
2. Statistics
   
   The graph representing mediation statistics up until May 26, 2000 shows a plateau in the mediations pending with a slight drop in May of 2000. The arbitration statistics indicate that approximately 110 new cases have been received per month in the first five months of 2000. This is significantly higher than the actuary's initial projected number of 60 new arbitration cases per month. The statistics also show that appeals are up slightly, which flows from the reduction of the backlog in arbitration and is being addressed by Stewart McMahon's move into the Director Delegate position for the next 5 ½ months.
   
   
3. Status of Practice Code Revisions
   
   Prior to the June 1st meeting, the Practice Code was sent electronically to members via e-mail. Since receiving the response from various members and others, minor revisions have been made to the Code. FSCO is currently aiming at a July 1st release date for the new Practice Code. However, they are currently considering how the new rules will apply to existing cases. The current plan is to have the new rules apply to any case where the pre-hearing is held after the rules are released and having the old rules apply to any case where the pre-hearing occurred prior to the release of the new rules.
   
   
4. Status of Outreach Education Program
   
   Lawrence Blackman indicated that the two seminars which were held in Toronto and Ottawa were a huge success, with over 350 people attending, including 41 presenters with local counsel presenting for the Ottawa session. The London session is planned for June 2nd, with 80 people currently enrolled, and an additional seven local counsel. Mary Wright was thanked for agreeing to participate in the London Program. The Thunder Bay program has been delayed to the fall, but will be a slightly different format from the previous three sessions due to the small number of participants.
   
   Of the people that have attended the sessions to date, two-thirds attended the advance session, and one-third attended the basic session.
   
   One of the members asked whether or not it was possible to obtain the written materials, and Lawrence Blackman indicated that any members interested in these materials should contact the Law Society at 1-800-668-7380, ext. 3376. When requesting these materials, refer to item #P 79999. Materials from the Law Society Program are now posted on the FSCO website at http://www.gov.on.ca
   
   
5. FSCO and OSC Merger Announced in the Budget
   
   Janice Mackintosh indicated that legislation will still be required for this merger to occur, and that there is potential for this to occur within the next year. There will be changes as a result of Ontario Securities Commissions merger with the Financial Services Commission of Ontario, and more information will be forthcoming once the legislation is passed.
   
   
6. Snowmobiles
   
   There was much discussion amongst members regarding the recent case of Fortin v. Laplante from the Court of Appeal which confirmed that a snowmobile is not an automobile for the purposes of the Insurance Act. The members were in agreement that if the client has a snowmobile policy that they will be entitled to Accident Benefits on a contractual basis. However, members were split as to whether or not occupants of uninsured snowmobiles would be able to collect accident benefits from their automobile insurers.
   
   The members were informed that the legal branch of the FSCO is currently investigating this matter with the IBC, and member companies in an attempt to clarify these issues and bring them to the attention of the legislature. It is the members' hope that this issue can be rectified prior to the next snowmobile season.
   
   
7. Lost Wages
   
   Phil Thorpe shared with the members the decision of Moons v. The Co-operators which dealt with the issue of lost wages under the Expense of Visitors section under the Bill 59 SABS. Phil indicated that this decision is currently being appealed.
   
   
8. Pelzner v. Coseco
   
   Mike De La Haye raised the issue of paralegals and subsection 398(1) of the Insurance Act. The Pelzner decision indicates that a paralegal is allowed to represent someone in a Financial Services Commission hearing. This decision has not been appealed as of this meeting date. Jan explained that this was the first decision by an arbitrator on this issue - but did not necessarily reflect official FSCO position on this issue. The Superintendent is aware of this decision and will consider it along with the expected report of the Honorable Peter Cory and will formulate the Commission's formal position to the issue.
   
   
9. Company's Forum Mandate
   
   The members reviewed and approved the Company's Forum Mandate.
   
   
10. Next Meetings:
    
    Wednesday, September 6, 2000 9:30 a.m.
    Friday, December 1, 2000 9:30 a.m.