Meeting - December 5, 2002

AGENDA

1. Review and Approval of Minutes from Previous
   Meeting - June 13, 2002 / October 17, 2002
2. Auto Insurance Reform Update
   Roberto Pegoraro
3. Statistics and Operational Updates
   - Mediation
   - Arbitration
   - Appeals
   DRS Staff
4. DRS Operational Changes – Update
   - Combining Files
   - Face to Face Mediations
   - Smart Forms - Demo
   - E-Filing
   - Disclosure and Sign-Back Letters
   - Re-Mediation Policy
5. Election and Appointment of Chair
6. Other Business

Dispute Resolution Group Companies Forum Minutes of Meeting December 5, 2002

Attendees

Insurer Representatives:
Iain Convery Allianz
Morag Durdle Co-Operators
Scott McDonald Co-Operators
Adam Fox Belair
Dierdre Martin IBC
Margaret Morrsion CGU
Brenda Fung CGU
Cassandra Phillips AXA
Mike Dela Haye Wawanesa
Martine Sliva ING
Mary Wright Royal & SunAlliance
Ron Bouwmeister CICMA

FSCO-DRG

Shonna Neil FSCO
Asfaw Seife FSCO
Roberto Pegararo FSCO
Barbara Dudzinski FSCO
David Braund FSCO
Kevin Hunt FSCO

Opening:

The regular meeting of the FSCO Companies Forum was called to order at 10 am on December 5th, 2002

1. Approval of Minutes
   
   The June minutes changed slightly and will need to be revised to account for attendees at that meeting. Other than that those minutes and those of the October 17th meeting were approved.
   
   
2. Bill 198
   
   Roberto Pegoraro provided an overview of the status of Bill 198 and the proposed timing for the release of related regulations. The regulations are currently being developed with the anticipation that they be introduced and implemented as early as March. The draft regulations should be released in January, to allow for a prior consultation period.
   
   
3. Smart Forms and E-Filing
   
   Kevin Hunt a FSCO forms designer/developer and Senior Arbitrator David Braund provided a demonstration of a "smart" mediation application form currently being developed to provide users with the ability to complete a mediation application on-line.
   
   Existing DRS forms can be downloaded from the FSCO website and can be printed but cannot be filled out electronically. The process of introducing "smart" forms will allow the user to complete the form with the assistance of triggered electronic prompts so that the form is completed correctly prior to being submitted to FSCO in hard copy. Current plans provide for completing the form on-line but existing technoloy will not allow the form to be saved by the user FSCO staff are exploring the options available to deal with this restriction.
   
   The next development phase which is scheduled for implementation in January 2004, will allow the user to fill out the form on-line and then to send it to FSCO electronically via the internet, completing the E-Filing transaction. With respect to timing, plans are that smart forms will be introduced this spring. As part of the development cycle, volunteers will be asked to participate in a pilot to test the "smart" mediation application form. After pilot testing the first form, and making necessary changes, development will proceed on the other three forms (Mediation Response, Arbitration Application and Arbitration Response). Only these four key forms will be made available as smart forms and for e-filing.
   
   
4. Mediation Statistics
   
   The new DRS statistics report records information on a quarterly basis. Some of the data fields did not exist on the old report and as such the statistics are incomplete for the first quarter indicated on the new report. For example - " % Applications Complete When Filed" is actually closer to 55% than the 47% shown on the report.
   
   The continuing increase in mediation activity is pushing the number of pending cases up slightly. The move to e-filing of applications is expected to improve the rate of file assignment.
   
   Mediation Services has prepared criteria to be used by mediators in determining whether a mediation meeting will be held face to face or by teleconference. The expectation is that approximately 15% of mediations will be face to face. The 2002 rate will be lower due to the impact of the labour dispute as most cases mediated and scheduled during that time were by teleconference. It was noted that in the early years of the Commission, when mediation activity was minimal by today's standards, almost 50% of mediation meetings were held face to face. The format for the mediation meeting is guided by the criteria. However, if both parties request a face to face meeting at FSCO but the criteria are not met, it can still be arranged if a meeting room at FSCO is available. Currently about 4% of non-GTA mediation meetings are done face to face. A copy of the criteria will be distributed at the next meeting.
   
   
5. Arbitration and Appeals
   
   Arbitration continues to close more files than it receives and the number of registered cases has shown a general upward trend. The total number of settled cases has gone up in two successive quarters while the average time for issuing a decision has decreased significantly. During the last quarter (June- September, 2002), 70 % of the decisions were issued within 85 days and the median age of decisions was 60 days. This is well within the expected and published range of 60 to 85 days. The average age of pending decisions is less than 40 days.
   
   Arbitration continues to make pre-hearing and hearing dates available within the published time lines; however, counsel do not always take advantage of these early dates
   
   The stats with respect to representatives have now been fixed and broken down by percentage. Insurers are at 100% and Insureds are at 67% ytd.
   
   
6. DRS Operational Changes – Update
   
   An information package was mailed to all ADR Co-ordinators, law firms, paralegals and service providers concerning a new procedure of combining files involving the same claimant and date of loss but where different representatives are indicated. The claimant will be contacted by DRS and asked to select one mediation representative. There are many internal procedures which vary depending on when in the process additional applications are received. DRS is interested in receiving other information concerning abuses of the mediation process such as representatives who time the submission of applications to avoid being captured through this combining protocol.
   
   A suggestion was made that mediators who live outside of the GTA could be designated to do all of the mediations in their area. FSCO does not feel it is operationally appropriate to restrict the mediation service provided in an area to one or two mediators. Currently, DRS is reviewing whether offering pre-hearing and/or mediation services in a city i.e., London for a couple of days in a concentrated effort to clear files would be valuable to the parties.
   
   A comment was made that insurers feel mediators are more influenced by claimants than by insurers when it comes to determining if a mediation will be held face to face or by teleconference. It is hoped that clarification concerning the criteria used will be of assistance, however, this perception will be brought to the attention of the mediators.
   Smart Forms / E- Filing- see notes previous
   
   Disclosure and sign back letters
   
   DRS staff presented a discussion package of draft letters which would be sent out in mediation and arbitration/appeals to deal with the issue of letting DRS claimant stakeholders know that there are implications to being represented by a non-lawyer.
   
   The mediation letter is an information letter sent out as part of the welcome package while in arbitrations and appeals, the claimant is requested to send back an Authorization to Represent form noting they have been informed of the non-lawyer representation implications and wish to proceed with that representative who is also required to sign the Atomization to Represent. Committee members were asked to provide their comments/feedback to DRS within the following 10 days. There was discussion about how the process would be administered including the issue of how to proceed in the event the form was not appropriately signed and if the process was restricted by language barriers, preventing the claimant from understanding the intent of the form.
   
   
7. New Business
   
   There was a discussion concerning changes to DRS mediation policy resulting from a decision of the Superior Court of Justice - Ontario Jodi Daneliak-Dooling v. Co-operators General Insurance Company. Parties must re-apply for mediation before proceeding to arbitration or court if a prior FSCO mediation resulted in a report of mediator indicating that all issues have been resolved. This will happen when a matter settles at mediation but subsequently the agreement falls apart.