An amendment to Ontario’s Insurance Act prohibiting that province’s employers from self-insuring LTD benefits has opened a door for brokers to partner with companies looking to maintain their coverage.
An amendment to Ontario’s Insurance Act prohibiting that province’s employers from self-insuring LTD benefits has opened a door for brokers to partner with companies looking to maintain their coverage.
Ontario’s budget, which received royal assent just recently, included an amendment to the Insurance Act to prohibit the provision of long-term disability (LTD) benefits in Ontario unless they’re provided through an insured arrangement with a licensed insurer.
“This change is similar to legislation passed by the federal government in 2012 that requires long-term disability plans for federally regulated employees to be insured,” states a bulletin from Blake’s. “The federal legislation came into effect on July 1, 2014. The federal legislation applies on a go-forward basis, meaning that long-term disability benefits that are in pay to employees on July 1, 2014, do not have to be insured.”
Any future exemptions or transitional provisions may be set out in regulation. This change will come into force on a future date to be proclaimed.
Blakes says that employers in Ontario and federally regulated industries who currently self-insure their LTD benefits programs will need to consider these arrangements in light of the new requirements.
Blake, Cassels & Graydon LLP is one of Canada’s top business law firms, receiving ‘Canada Law Firm of the Year’ accolades for six years running in the Who’s Who Legal Awards 2014.
Ontario’s budget, which received royal assent just recently, included an amendment to the Insurance Act to prohibit the provision of long-term disability (LTD) benefits in Ontario unless they’re provided through an insured arrangement with a licensed insurer.
“This change is similar to legislation passed by the federal government in 2012 that requires long-term disability plans for federally regulated employees to be insured,” states a bulletin from Blake’s. “The federal legislation came into effect on July 1, 2014. The federal legislation applies on a go-forward basis, meaning that long-term disability benefits that are in pay to employees on July 1, 2014, do not have to be insured.”
Any future exemptions or transitional provisions may be set out in regulation. This change will come into force on a future date to be proclaimed.
Blakes says that employers in Ontario and federally regulated industries who currently self-insure their LTD benefits programs will need to consider these arrangements in light of the new requirements.
Blake, Cassels & Graydon LLP is one of Canada’s top business law firms, receiving ‘Canada Law Firm of the Year’ accolades for six years running in the Who’s Who Legal Awards 2014.
