242.5(1)Where an insurer fails to remit the levy within the time set for remittance under this Act, the licence of the defaulting insurer respecting automobile insurance shall be automatically suspended and the suspension shall take effect on midnight of the last day for making the remittance.

242.5(2)Where a licence is suspended under subsection (1), the Superintendent may reinstate the licence of the defaulting insurer upon being satisfied that the insurer has remedied the default giving rise to the suspension.

242.5(3)The suspension of the licence of a defaulting insurer under subsection (1) shall not affect the validity of any policy of the insurer and all rights, duties, obligations and liabilities of the insured and insurer under any such policy shall remain in force and effect.

242.5(4)Where a defaulting insurer fails to remedy the default within ninety days, the Superintendent shall report this fact to the Minister and the Minister may, with the approval of the Lieutenant-Governor in Council, and upon giving notice to the defaulting insurer and after holding a hearing, revoke the licence of the insurer.

242.5(5)The Superintendent, without the consent of the policy holders or the defaulting insurer, may appoint an administrator for the automobile insurance contracts of a defaulting insurer whose licence is revoked under subsection (4) and such appointment shall remain in force until revoked by the Superintendent.

242.5(6)The remuneration of an administrator appointed under subsection (5) shall be in the absolute discretion of the Superintendent and all costs including remuneration associated with the appointment of the administrator and reinsurance of the automobile insurance contracts shall be borne by the defaulting insurer.

242.5(7)The administrator appointed under subsection (5) shall have a right of access to, and the defaulting insurer shall provide, all books and records relating to all automobile insurance contracts of the defaulting insurer in force at the time of suspension or revocation of the licence.

242.5(8)An administrator appointed under subsection (5) may arrange for the reinsurance by some other licensed insurer of all automobile insurance contracts of a defaulting insurer whose licence has been revoked under subsection (4).

242.5(9)Where the licence of a defaulting insurer is revoked under subsection (4), all automobile insurance contracts, the terms and conditions of such contracts and all rights, duties, obligations and liabilities of the insured and insurer thereunder remain in full force and effect until such contracts have been reinsured under subsection (8).

242.5(10)Notice of a suspension under subsection (1), reinstatement under subsection (2) or revocation under subsection (4) shall be published by the Superintendent once in The Royal Gazette as soon as reasonably practicable after such suspension, reinstatement or revocation takes effect.

242.5(11)An administrator appointed under subsection (5) may make a valid and effectual assignment to the reinsurer of all right, title and interest of a defaulting insurer whose licence has been revoked, in and to the automobile insurance contracts of the defaulting insurer in force at the time of reinsurance.

242.5(12)Where an assignment of contracts to a reinsurer is made by an administrator under subsection (11), all right, title and interest in the unearned premiums existing in respect of such contracts shall, effective as of the time of reinsurance, vest in the reinsurer and the defaulting insurer shall immediately pay over to the reinsurer an amount equal to the amount of the unearned premiums then in existence.

242.5(13)Where right, title and interest in unearned premiums vests in the reinsurer under subsection (12), the interest so vested in the reinsurer shall constitute a debt owing by the defaulting insurer to the reinsurer and shall be a first charge against all assets of the defaulting insurer in the Province.