700 Professional Liability Insurance
BYLAWS
REGULATIONS
701 Mandatory professional liability insurance
(1) Professional liability insurance coverage as prescribed by the Council in Regulation 7101 shall be maintained, and satisfactory proof thereof shall be provided to the Institute, by every firm of members engaged in the practice of public accounting in Manitoba, including a member who is an associate or employee of the firm. Alternatively, such firms of members shall be required to provide sufficient evidence that indemnity protection exists with coverage at least equivalent to the coverage prescribed in Regulation 7101(1).
The provisions of this Bylaw and related Regulations shall apply mutatis mutandis to each member who is a proprietor, partner, shareholder, associate or employee of every firm engaged in the practice of public accounting in Manitoba.
(2) In the event professional liability insurance coverage as required in clause (1) is not maintained, or satisfactory proof of such coverage is not provided to the Institute and
| (a) |
the member or members have been directed by the Practice Advisor or other authorized officer or employee of the Institute to arrange for the required insurance and to provide the required satisfactory proof, and |
| (b) |
the member or members have been advised that failure to arrange for the required insurance and to provide the required satisfactory proof will result in the matter being referred to the Membership Committee with the recommendation that the member or members be suspended or terminated, |
the Membership Committee, upon receiving proof of the facts outlined in clauses (2)(a) and (b) and upon ten (10) days notice in writing to the member or members of the time and day appointed for the Membership Committee's consideration of the matter, may suspend or terminate the member or members.
(3) A person whose rights and privileges of membership in the Institute have been suspended pursuant to clause (2) shall be reinstated to membership in good standing effective the date upon which satisfactory proof of the required coverage, together with the reinstatement fee prescribed by the Council pursuant to Bylaw 332(4)(a), are received by the Institute.
(4) In the event a person whose rights and privileges of membership in the Institute have been suspended pursuant to clause (2) remains suspended for a period of sixty (60) days, that person's membership in the Institute shall be terminated.
(5) A person whose membership has been terminated pursuant to clause (4) may apply to the Membership Committee to be readmitted to membership in the Institute upon
| (a) |
making a written application in the form prescribed by the Council; |
| (b) |
filing the declaration required pursuant to Bylaw 355; |
| (c) |
providing satisfactory proof of the required coverage; and |
| (d) |
remitting the readmission fee prescribed by the Council pursuant to Bylaw 352(1). |
(6) Upon the request of the Practice Advisor, or other such officer or employee as may be designated from time to time by the Council, a member or members shall produce the professional liability insurance policy carried by the member or members and shall provide all information and documents relevant to the policy.
(7) The Council may adopt and amend from time to time Regulations related to mandatory professional liability insurance. [The next bylaw is Bylaw 801]
MANDATORY PROFESSIONAL LIABILITY INSURANCE REGULATION
(Pursuant to Bylaw 701)
7101 Coverage requirements
(1) Insurance coverage
Effective with all new policies or renewals of existing policies taking effect after October 1, 2006, professional liability insurance coverage shall be maintained pursuant to Bylaw 701 in an amount at least equal to
| (i) |
$1,000,000 per occurrence, where one member is engaged or employed in the practice of public accounting; |
| (ii) |
$1,500,000 per occurrence, where two or three members are engaged or employed in the practice of public accounting in the same firm; or |
| (iii) |
$2,000,000 per occurrence, where four or more members are engaged or employed in the practice of public accounting in the same firm. |
The professional liability insurance policy shall carry a deductible which is not greater than 5% of the amount of coverage.
(2) Duration of coverage
In the event of
| (a) |
the withdrawal of a proprietor, partner, shareholder or member employee or associate from a practice of public accounting, whether or not that proprietor, partner, shareholder, employee or associate continues to carry on the practice of public accounting elsewhere; or |
| (b) |
the merger, dissolution or cessation of practice of a firm engaged in the practice of public accounting, |
the professional liability insurance that was required to be carried pursuant to clause 7101(1) prior to the occurrence of the event referred to in (a) or (b), shall continue to be maintained for a period of at least six years following the event to cover acts or omissions occurring prior to the event.
Where successor members or members in charge of successor firms have arranged to assume responsibility for maintaining such insurance, such successor members or members in charge of such successor firms shall be required to provide satisfactory proof annually that the required coverage is in effect respecting the predecessor.
Where successor members or members in charge of successor firms have not arranged to assume responsibility for maintaining such insurance, the predecessor member shall be required to provide satisfactory proof annually that the required coverage is in effect.
(3) Proof of coverage
Satisfactory proof of insurance coverage shall be provided to the Institute upon application for approval of the member's practice of public accounting in Manitoba, and on an annual basis thereafter, and shall be submitted in the form and manner prescribed by the Council.
(4) Other information
Members shall provide such other information as the Council requires to verify compliance with Bylaw 701 and this regulation.
(5) Notification of insurance cancellation or reduction
Every member shall be responsible to notify the Institute immediately and every professional liability insurance contract shall be endorsed with the requirement that the insurer notify the Institute immediately of the cancellation of the insurance coverage or the reduction of the insurance coverage below the level required pursuant to clause 7101 (1).
[The next Bylaw is Bylaw 801]
|
Home
