An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Assented to 2007-03-29

Marginal note:1996, c. 6, s. 161

 Paragraph 161(6)(b) of the Act is replaced by the following:

  • (b) holders of policies of a class of insurance specified in the order of the Superintendent under Part XIII of the Insurance Companies Act, other than holders of a policy exempt from Part XIII by virtue of section 572.1 of that Act, and

Marginal note:1996, c. 6, s. 161
  •  (1) Subsections 162(1) and (2) of the Act are replaced by the following:

    Marginal note:Transfer and reinsurance of policies by liquidator
    • 162. (1) The liquidator may, with the approval of the court and without the consent of the policyholders, arrange for the transfer or reinsurance of

      • (a) all or a portion of the policies of the company, in the case of a company other than a foreign company, or

      • (b) all or a portion of the policies in respect of a foreign company’s insurance business in Canada

      in a company, society, foreign company or provincial company within the meaning of subsection 2(1) of the Insurance Companies Act or an insurance company incorporated by or under an Act of a legislature of a province and authorized under the laws of the province to issue policies of the class being transferred or reinsured, if the terms of the transfer or reinsurance are, in the opinion of the court having regard to the priorities set out in this Part, fair and equitable to

      • (c) the policyholders whose policies are being transferred or reinsured,

      • (d) the estate of the company as a whole, and

      • (e) the remaining policyholders of the company.

    • Marginal note:Transfer and reinsurance of policies by liquidator

      (2) The liquidator may, with the approval of the court and without the consent of the policyholders, arrange for the transfer or reinsurance of all or a portion of the policies of the company, other than policies in respect of its insurance business in Canada, in any body corporate if the terms of the transfer or reinsurance are, in the opinion of the court, having regard to the priorities set out in this Part, fair and equitable to

      • (a) the policyholders whose policies are being transferred or reinsured;

      • (b) the estate of the company as a whole; and

      • (c) the remaining policyholders of the company.

  • (2) Section 162 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Mortgage insurance policies

      (4) The liquidator of a company, society or foreign company within the meaning of subsection 2(1) of the Insurance Companies Act may, with the approval of the court and the consent of the Canada Mortgage and Housing Corporation, and without the consent of the policyholders, arrange for the transfer to that corporation of all or a portion of the company’s, society’s or foreign company’s policies of mortgage insurance, or arrange for the reinsurance of all or a portion of those policies by that corporation.