Insurance Companies Act (S.C. 1991, c. 47)

Act current to 2016-09-18 and last amended on 2016-06-22. Previous Versions

 [Repealed, 1996, c. 6, s. 96]

Marginal note:Powers of directors and officers suspended
  •  (1) Where the Superintendent takes control of a company, society or provincial company pursuant to subparagraph 679(1)(b)(iii), the powers, duties, functions, rights and privileges of the directors of the company, society or provincial company and of the officers of the company, society or provincial company responsible for its management are suspended.

  • Marginal note:Superintendent to manage company

    (2) Where the Superintendent takes control of a company, society or provincial company pursuant to subparagraph 679(1)(b)(iii), the Superintendent shall manage the business and affairs of the company, society or provincial company and in so doing the Superintendent

    • (a) may perform any of the duties and functions that the persons referred to in subsection (1) were performing prior to the taking of control; and

    • (b) has and may exercise any power, right or privilege that any such person had or could have exercised prior to the taking of control.

  • Marginal note:Persons to assist

    (3) Where the Superintendent takes control of a company, society or provincial company pursuant to subparagraph 679(1)(b)(iii), or of the assets of a foreign company pursuant to subparagraph 679(1)(b)(i) or (ii), the Superintendent may appoint one or more persons to assist in the management of the company, society or provincial company or of the insurance business in Canada of the foreign company.

  • 1991, c. 47, s. 683;
  • 1996, c. 6, s. 97.
Marginal note:Expiration of control

 Control by the Superintendent under subsection 679(1) of a company, society or provincial company or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receivable in respect of its insurance business in Canada expires on the day on which a notice by the Superintendent is sent to

  • (a) the directors and officers who conducted the business and affairs of the company, society or provincial company, or

  • (b) the chief agent in Canada of the foreign company,

stating that the Superintendent is of the opinion that the circumstances leading to the taking of control by the Superintendent have been substantially rectified and that the company, society or provincial company or the foreign company, as the case may be, can resume control of its business and affairs, assets or its insurance business in Canada, as the case may be.

  • 1991, c. 47, s. 684;
  • 1996, c. 6, s. 97.
Marginal note:Superintendent may request winding-up

 The Superintendent may, at any time before the receipt of a request under section 685 to relinquish control of a company, society or provincial company or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receivable in respect of its insurance business in Canada, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of

  • (a) the company, society or provincial company, where the assets of the company, society or provincial company are under the control of the Superintendent pursuant to subparagraph 679(1)(b)(i) or (ii);

  • (b) the insurance business in Canada of the foreign company, where the assets in Canada of the foreign company together with its other assets referred to in subparagraph 679(1)(b)(i) or (ii) are under the control of the Superintendent pursuant to that subparagraph; or

  • (c) the company, society or provincial company, where it is under the control of the Superintendent pursuant to subparagraph 679(1)(b)(iii).

  • 1996, c. 6, s. 97.
Marginal note:Requirement to relinquish control

 Where no action has been taken by the Superintendent under section 684.1 and, after thirty days following the taking of control by the Superintendent under subsection 679(1) of a company, society or provincial company or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receivable in respect of its insurance business in Canada, the Superintendent receives from the board of directors of the company, society or provincial company or, in case of a foreign company, its chief agent, a notice in writing requesting the Superintendent to relinquish control, the Superintendent must, not later than twelve days after receipt of the notice,

  • (a) comply with the request; or

  • (b) request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the company, society or provincial company or the insurance business in Canada of the foreign company.

  • 1991, c. 47, s. 685;
  • 1996, c. 6, s. 97.

Special Assessments of Companies, Societies, Foreign Companies and Provincial Companies

Marginal note:Superintendent to ascertain amounts
  •  (1) The Superintendent shall, before December 31 in each year,

    • (a) ascertain the total amount of expenses incurred during the immediately preceding fiscal year in

      • (i) exercising control of a company, society or provincial company,

      • (ii) exercising control of the assets of a foreign company pursuant to subparagraph 679(1)(b)(i) or (ii),

      • (iii) carrying out as liquidator the winding-up of a company, society or provincial company or of the insurance business in Canada of a foreign company,

      including amounts paid as interest charges on money borrowed by or on behalf of the company, society or provincial company to meet its requirements for liquid funds or as the cost of terminating leases or employment contracts or other similar expenses; and

    • (b) ascertain the portion of the expenses described in paragraph (a) that were incurred by the company, society, foreign company or provincial company in respect of its policies of accident and sickness insurance, its policies of life insurance and annuity and its other policies by multiplying those expenses by

      A/D, B/D and C/D, respectively,

      where

      A, B and C 
      represent the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, in respect of
      • (i) its policies of accident and sickness insurance,

      • (ii) its policies of life insurance and annuities, and

      • (iii) its other policies,

      respectively, during the period referred to in the description of D, and

      D 
      represents the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, during the period of five calendar years preceding the first to occur of the calendar year in which the Superintendent took control of the company, society or provincial company, or in the case of a foreign company, the assets, and that in which a winding-up order was issued in respect of the company, society, foreign company or provincial company.
  • Marginal note:Amounts conclusive

    (2) The amounts ascertained by the Superintendent pursuant to subsection (1) are final and conclusive for the purposes of this section and sections 687 and 688.

  • 1991, c. 47, s. 686;
  • 1996, c. 6, s. 98;
  • 2007, c. 6, s. 307.
Marginal note:Assessment

 As soon as possible after ascertaining the portions described in paragraph 686(1)(b), the Superintendent shall, subject to this section and to the extent and in the manner that the Governor in Council may prescribe, assess those portions against each company, society, foreign company and provincial company, other than the company, society, foreign company or provincial company in respect of which the expenses were incurred, in the following proportion:

A/B

where

A 
represents the net premiums during the immediately preceding calendar year of the company, society, foreign company or provincial company from
  • (i) policies of accident and sickness insurance,

  • (ii) policies of life insurance and annuities, or

  • (iii) other policies; and

B 
represents the total net premiums during the immediately preceding calendar year of all companies, societies, foreign companies and provincial companies, other than the company, society, foreign company or provincial company in respect of which the expenses were incurred, from
  • (i) policies of accident and sickness insurance,

  • (ii) policies of life insurance and annuities, or

  • (iii) other policies.

  • 1991, c. 47, s. 687;
  • 2007, c. 6, s. 308.
 
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