Marginal note:Definitions

• 540. (1) In this Part,

  “by-law”

  « règlement administratif »

  “by-law” includes the incorporating instrument of a society;

  “permitted entity”

  « entité admissible »

  “permitted entity” means an entity in which a society is permitted to acquire a substantial investment under section 554;

  “subordinate branch”

  « succursale secondaire »

  “subordinate branch” means a division of a society as described in the by-laws of the society;

  “supreme governing body”

  « conseil supérieur de direction »

  “supreme governing body” means a board of directors or any other group within a society having ultimate authority for managing the business and affairs of the society.

• Marginal note:Members of a society’s group

  (2) For the purpose of section 554, a member of a society’s group is any of the following:

  • (a) a subsidiary of the society;

  • (b) an entity in which the society has a substantial investment; or

  • (c) a prescribed entity in relation to the society.

• Marginal note:Words of Part IX

  (3) Words and expressions that are defined for the purposes of Part IX and referred to in this Part, other than “permitted entity”, have, for the purposes of this Part, the meanings assigned to them by that Part with any modifications that the circumstances require.

Marginal note:Granting of sickness benefits by subordinate branch

541. No by-law of a society shall empower or purport to empower any subordinate branch of the society to grant sickness benefits to any member of the branch unless the by-law makes adequate provision to secure on an actuarial basis the solvency of the sick benefit fund of the branch.

Marginal note:Society’s business

• 542. (1) Except as otherwise permitted by this Act, a society shall not carry on a business that does not relate to the business of the insuring of risks in respect of its members or the spouses, common-law partners or children of its members.

• Marginal note:Additional activities

  (2) A society may

  • (a) with the consent of the Minister, engage in activities that are reasonably ancillary to the society’s insurance business;

  • (b) engage in fraternal, benevolent or religious activities;

  • (c) hold, manage and otherwise deal with real property;

  • (d) act as an agent for a person, or enter into any other arrangement with a person, in respect of the provision of a service by

    • (i) a financial institution that is primarily engaged in an insurance business, or

    • (ii) a body corporate in which a society is permitted by section 554 to have a substantial investment; and

  • (e) refer persons to a financial institution or body corporate described in paragraph (d).

• Marginal note:By-law required

  (3) A society shall not carry on the business of insuring risks unless it is authorized to do so by a by-law of the society passed on the recommendation of the society’s actuary and approved by the Superintendent.

• Marginal note:Classes of insurance

  (4) A society shall not insure a risk that is not within a class of insurance that is specified in the order of the Superintendent approving the commencement and carrying on of business by the society. The classes that may be specified in that order are the class of life insurance, the class of accident and sickness insurance or both of those classes.

• Marginal note:Restriction on leasing

  (5) A society shall not engage in Canada in any financial leasing of personal property.