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Breach of policy

(8)

Despite anything in an insurance policy issued under this section, no act of any person

shall be deemed to be a breach of the conditions of the policy if the act is prejudicial to the

interests of the corporation or the owners. 1998, c. 19, s. 99 (8).

Termination

(9)

An insurance policy issued under this section shall be deemed to include a clause that

the insurer shall not terminate the insurance contract unless the insurer gives the corporation and

the insurance trustee, if any, at least 60 days notice by registered mail. 1998, c. 19, s. 99 (9).

Proceeds

100. (1)

Despite anything contained in an insurance trust agreement that the corporation

has entered into with an insurance trustee, if the proceeds of an insurance policy issued under

section 99 are less than 15 per cent of the replacement cost of the property covered by the policy,

the insurer shall pay the proceeds to the corporation or the person whom the corporation

specifies. 1998, c. 19, s. 100 (1).

Use of insurance proceeds

(2)

Upon the proceeds being available, the corporation shall promptly use them for the

repair or replacement of the damaged units and common elements, unless the owners have voted

to terminate because of substantial damage in accordance with section 123. 1998, c. 19,

s. 100 (2).

Payment from Ontario New Home Warranties Plan

(3)

A corporation that receives a payment out of the guarantee fund under subsection 14

(3) or (4) of the

Ontario New Home Warranties Plan Act

for remedial work to the common

elements shall promptly use the payment for the remedial work, unless,

(a) the owners have voted to terminate because of substantial damage in accordance with

section 123; or

(b) the corporation has already completed and paid for the remedial work. 1998, c. 19,

s. 100 (3).

Limitation, mortgage

(4)

Despite any provision in a mortgage or subsection 6 (2) of the

Mortgages Act

, a

mortgagee may not require that proceeds received under an insurance policy on the property or

on a part of the property or a payment received out of the guarantee fund under subsection 14 (3)

or (4) of the

Ontario New Home Warranties Plan Act

be applied towards the discharge of the

mortgage; a requirement that contravenes this subsection is void. 1998, c. 19, s. 100 (4).

Double coverage

101. (1)

Insurance that a corporation obtains and maintains under section 99 shall be

deemed not to be other insurance for the purpose of any prohibition of or condition against other

insurance in a policy of an owner insuring against loss of or damage to the owner’s unit or the

owner’s interest in the common elements and covering only to the extent that the insurance

placed by the corporation is inapplicable, inadequate or ineffective. 1998, c. 19, s. 101 (1).

No reciprocal contribution

(2)

Despite section 150 of the

Insurance Act

, an insurance policy issued under section 99

and any other insurance policy, except another policy under section 99, are not liable to be