658. Every provincial company for which an order has been made under section 657 shall provide the Superintendent with an undertaking in such form as may be required by the Superintendent that it will, so long as the order is not rescinded, submit to and comply with all of the provisions of this Act applicable to it in respect of the classes of insurance specified in the order and any conditions or limitations set out in the order.
659. A provincial company that deposited securities with the Receiver General pursuant to section 76 or 82 of the Canadian and British Insurance Companies Act shall apply for the return of those securities within such period following the coming into force of this section as may be fixed by order of the Governor in Council.
Duties of Directors
Marginal note:Appointment of actuary, auditor and conduct review committee
660. (1) The directors of a provincial company shall
(a) appoint the actuary of the provincial company forthwith after the Superintendent makes an order for the provincial company under section 657;
(b) appoint the auditor of the provincial company for the purposes of this Act forthwith after the Superintendent makes an order for the provincial company under section 657; and
(c) establish a conduct review committee consisting of at least three directors who are not affiliated with the company, determined in accordance with regulations made under section 170.
Marginal note:Duties of conduct review committee
(2) The conduct review committee of a provincial company shall
(a) require the management of the provincial company to establish procedures for complying with Part XI;
(b) review those procedures and their effectiveness in ensuring that the provincial company is complying with Part XI;
(b.1) if an insurance holding company or a bank holding company that is widely held has a significant interest in any class of shares of the provincial company, establish policies for entering into transactions referred to in section 528.1; and
(c) review the practices of the provincial company to ensure that any transactions with related parties of the provincial company that may have a material effect on the stability or solvency of the provincial company are identified.
Marginal note:Provincial company report to Superintendent
(3) A provincial company shall report to the Superintendent on the mandate and responsibilities of the conduct review committee and the procedures established by the committee under paragraph (2)(a).
Marginal note:Committee report to directors
(4) After each meeting of the conduct review committee of a provincial company, the committee shall report to the directors of the provincial company on all transactions and other matters reviewed by the committee.
Marginal note:Directors’ report to Superintendent
(5) Within ninety days after the end of each financial year, the directors of a provincial company shall report to the Superintendent on the proceedings of the conduct review committee and on all transactions and other matters reviewed by the committee during the year.
- 1991, c. 47, s. 660;
- 2001, c. 9, s. 450.
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