Proof of financial responsibility

Proof of financial responsibility

304 (1) An applicant for an authorization must provide proof of financial responsibility in an amount that is determined by the Commission. The proof must be in the form of a letter of credit, guarantee or indemnity bond or in any other form satisfactory to the Regulator. (2) The holder of an authorization must ensure that the proof of financial responsibility remains in force for the duration of the work or activity in respect of which the authorization is issued. (3) The Regulator may require that moneys in an amount of not more than the amount prescribed by regulation for any case or class of cases, or fixed by the Regulator in the absence of regulations, be paid out of the funds available under the letter of credit, guarantee or indemnity bond or other proof provided under subsection (1) in respect of any claim for which proceedings may be instituted under section 302, whether or not those proceedings have been instituted. (4) A required payment must be made in the manner, subject to any conditions and procedures, and to or for the benefit of the persons or classes of persons that may be prescribed by regulation for any case or class of cases, or that may be required by the Regulator in the absence of regulations. (5) If a claim is sued for under section 302, there must be deducted from any award made pursuant to the action on that claim any amount received by the claimant under this section in respect of the loss, damage, costs or expenses claimed.