Insurance Business (Cooperative Credit Associations) Regulations (SOR/2003-300)

Regulations are current to 2014-12-08 and last amended on 2012-03-01. Previous Versions

Insurance Business (Cooperative Credit Associations) Regulations

SOR/2003-300

COOPERATIVE CREDIT ASSOCIATIONS ACT

Registration 2003-08-13

Insurance Business (Cooperative Credit Associations) Regulations

P.C. 2003-1222  2003-08-13

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 381 of the Cooperative Credit Associations ActFootnote a, hereby makes the annexed Insurance Business (Cooperative Credit Associations) Regulations.

INTERPRETATION

  •  (1) The following definitions apply in these Regulations.

    “Act”

    « Loi »

    “Act” means the Cooperative Credit Associations Act.

    “association web page”

    « page Web d’association »

    “association web page” means a web page that an association uses in relation to its business in Canada, including any information provided by the association that is accessible on a telecommunications device. It does not include a web page that is only accessible by employees or agents of the association.

    “authorized type of insurance”

    « assurance autorisée »

    “authorized type of insurance” means

    • (a) credit or charge card-related insurance,

    • (b) creditors’ disability insurance,

    • (c) creditors’ life insurance,

    • (d) creditors’ loss of employment insurance,

    • (e) creditors’ vehicle inventory insurance,

    • (f) export credit insurance,

    • (g) mortgage insurance, or

    • (h) travel insurance.

    “credit or charge card-related insurance”

    « assurance carte de crédit ou de paiement »

    “credit or charge card-related insurance” means a policy of an insurance company that provides insurance to a holder of a credit or charge card issued by a body corporate that is part of the cooperative credit system as a feature of the card, without request and without an individual assessment of risk,

    • (a) against loss of, or damage to, goods purchased with the card,

    • (b) under which the insurance company undertakes to extend a warranty provided by the manufacturer of goods purchased with the card, or

    • (c) against any loss arising from a contractual liability assumed by the card holder when renting a vehicle, where the rental is paid for with the card.

    “creditors’ disability insurance”

    « assurance-invalidité de crédit »

    “creditors’ disability insurance” means a group insurance policy that will pay to a body corporate that is part of the cooperative credit system, all or part of the amount of a debt of a debtor to the body corporate in the event of bodily injury to, or an illness or disability of,

    • (a) where the debtor is a natural person, the debtor or the spouse or common law partner of the debtor;

    • (b) a natural person who is a guarantor of all or part of the debt;

    • (c) where the debtor is a body corporate, a director or an officer of the body corporate; or

    • (d) where the debtor is an entity, any natural person who is essential to the ability of the debtor to meet the debtor’s financial obligations to the body corporate that is part of the cooperative credit system.

    “creditors’ life insurance”

    « assurance-vie de crédit »

    “creditors’ life insurance” means a group insurance policy that will pay to a body corporate that is part of the cooperative credit system, all or part of the amount of a debt of a debtor to the body corporate, or where the debt is in respect of a small business or a farm, fishery or ranch, all or part of the amount of the credit limit of a line of credit, in the event of the death of

    • (a) where the debtor is a natural person, the debtor or the spouse or common-law partner of the debtor;

    • (b) a natural person who is a guarantor of all or part of the debt;

    • (c) where the debtor is a body corporate, a director or an officer of the body corporate; or

    • (d) where the debtor is an entity, any natural person who is essential to the ability of the debtor to meet the debtor’s financial obligations to the body corporate that is part of the cooperative credit system.

    “creditors’ loss of employment insurance”

    « assurance crédit en cas de perte d’emploi »

    “creditors’ loss of employment insurance” means a policy of an insurance company that will pay to a body corporate that is part of the cooperative credit system, without any individual assessment of risk, all or part of the amount of a debt of a debtor to the body corporate in the event that

    • (a) where the debtor is a natural person, the debtor becomes involuntarily unemployed, or

    • (b) a natural person who is a guarantor of all or part of the debt becomes involuntarily unemployed.

    “creditors’ vehicle inventory insurance”

    « assurance crédit pour stocks de véhicules »

    “creditors’ vehicle inventory insurance” means a policy of an insurance company that provides insurance against direct and accidental loss of, or damage to, vehicles that are held in stock, for display and sale, by a debtor to a body corporate that is part of the cooperative credit system, some or all of which have been financed by the body corporate.

    “export credit insurance”

    « assurance crédit des exportateurs »

    “export credit insurance” means a policy of an insurance company that provides insurance to an exporter of goods or services against loss incurred by the exporter as a result of nonpayment for exported goods or services.

    “group insurance policy”

    « police d’assurance collective »

    “group insurance policy” means a contract of insurance between an insurance company and any body corporate that is part of the cooperative credit system that provides insurance severally in respect of a group of identifiable persons who individually hold certificates of insurance.

    “insurance company”

    « société d’assurances »

    “insurance company” means an entity that is approved, registered or otherwise authorized to insure risks under an Act of Parliament or of the legislature of a province.

    “line of credit”

    « marge de crédit »

    “line of credit” means a commitment on the part of a body corporate that is part of the cooperative credit system, to lend to a debtor of the body corporate, without a predetermined repayment schedule, one or more amounts, where the aggregate amount outstanding does not exceed a predetermined credit limit, which limit does not exceed the reasonable credit needs of the debtor.

    “mortgage insurance”

    « assurance hypothèque »

    “mortgage insurance” means an insurance policy that provides insurance to a body corporate that is part of the cooperative credit system, against loss caused by a default on the part of a debtor who is a natural person under a loan from the body corporate that is secured by a mortgage on real property or on an interest in real property.

    “personal accident insurance”

    « assurance accidents corporels »

    “personal accident insurance” means a group insurance policy that provides insurance to a natural person, whereby the insurance company undertakes to pay

    • (a) one or more amounts in the event of bodily injury to, or the death of, the person that is caused by an accident, or

    • (b) a certain amount for each day that the person is hospitalized, in the event of bodily injury to the person that is caused by an accident or in the event of an illness or disability of the person.

    “small business”

    « petite entreprise »

    “small business” means a business that is or, if it were incorporated, would be a small business corporation within the meaning of subsection 248(1) of the Income Tax Act.

    “travel insurance”

    « assurance voyage »

    “travel insurance” means

    • (a) a policy of an insurance company that provides insurance to a natural person in respect of a trip by the person away from the place where the person ordinarily resides, without any individual assessment of risk, against

      • (i) loss that results from the cancellation or interruption of the trip,

      • (ii) loss of, or damage to, personal property that occurs during the trip, or

      • (iii) loss that is caused by the delayed arrival of personal baggage during the trip, or

    • (b) a group insurance policy that provides insurance to a natural person in respect of a trip by the person away from the province in which the person ordinarily resides

      • (i) against expenses incurred during the trip that result from an illness or disability of the person that occurs during the trip,

      • (ii) against expenses incurred during the trip that result from bodily injury to, or the death of, the person that is caused by an accident during the trip,

      • (iii) whereby the insurance company undertakes to pay one or more sums of money in the event of an illness or disability of the person that occurs during the trip, or of bodily injury to, or the death of, the person that is caused by an accident during the trip,

      • (iv) against expenses incurred by the person for dental care necessitated by an accident that occurs during the trip, or

      • (v) in the event that the person dies during the trip, against expenses incurred for the return of the person’s remains to the place where the person was ordinarily resident before death, or against travel expenses incurred by a relative of that person who must travel to identify that person’s remains.

  • (2) For the purposes of these Regulations, the following bodies corporate are part of the cooperative credit system:

    • (a) an association;

    • (b) a local cooperative credit society;

    • (c) a body corporate in which an association or a local cooperative credit society has a substantial investment and which is primarily engaged in the business of providing financial services;

    • (d) a body corporate that is primarily engaged in providing financial services and in which two or more associations or local cooperative credit societies hold, in aggregate, sufficient voting rights which, if exercised, would constitute control of the body corporate within the meaning of paragraph 3(1)(a) of the Act; and

    • (e) a cooperative corporation, the membership of which is primarily composed of associations, central cooperative credit societies or local cooperative credit societies, and which is primarily engaged in the business of providing financial services.

  • (3) For the purposes of these Regulations, a web page is not an association web page by reason only that the web page provides access to an association web page or promotes the business of an association in Canada.

  • SOR/2011-185, s. 1.

PERMITTED ACTIVITIES

 A retail association may carry on any aspect of the business of insurance, other than the underwriting of insurance, outside Canada.

  • SOR/2011-185, s. 2.
  •  (1) An association may administer an authorized type of insurance and personal accident insurance.

  • (2) An association may administer a group insurance policy for

    • (a) its employees;

    • (b) for the employees of any body corporate that the association has control of, or a substantial investment in, under section 390 of the Act; or

    • (c) for the employees of a member of the association.

 An association may provide advice or a service in respect of

  • (a) an authorized type of insurance;

  • (b) an insurance policy that is not of an authorized type of insurance referred to in paragraph 6(1)(b); or

  • (c) an insurance policy that is not of an authorized type of insurance, other than a policy referred to in paragraph 6(1)(b), if

    • (i) the advice is general in nature,

    • (ii) the advice is not in respect of

      • (A) a specific risk, proposal in respect of life insurance, insurance policy or service, or

      • (B) a particular insurance company, agent or broker, and

    • (iii) the association does not thereby refer any person to a particular insurance company, agent or broker.

PROMOTION

 An association shall not, in relation to its business in Canada, promote an insurance company, agent or broker unless

  • (a) the company, agent or broker deals only in authorized types of insurance; or

  • (b) the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association and is directed to

    • (i) all holders of credit or charge cards issued by the association or by any body corporate that is part of the cooperative credit system,

    • (ii) all customers of the association and all members of local cooperative credit societies that are members of the association, who are natural persons and who regularly receive statements of account or notices of those statements, or

    • (iii) the general public.

  • SOR/2011-185, s. 3.
  •  (1) An association shall not, in relation to its business in Canada, promote an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, unless

    • (a) the policy is of an authorized type of insurance or the service is in respect of such a policy;

    • (b) the policy is not of an authorized type of insurance and

      • (i) is restricted to insuring the risks of the association, a local cooperative credit society that is a member of the association or an affiliate of the association, and

      • (ii) does not in any way insure the risks of a customer arising from a transaction with the customer.

    • (c) the policy is to be provided by a corporation without share capital, other than a mutual insurance company or fraternal benefit society, that carries on business without pecuniary gain to its members and the policy provides insurance to a natural person in respect of the risks covered by travel insurance;

    • (d) the policy is a personal accident insurance policy and the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association;

    • (e) the service is in respect of a policy referred to in paragraph (c) or a policy referred to in paragraph (d) that is promoted in the manner described in that paragraph; or

    • (f) the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association and is directed to a group of persons referred to in any of subparagraphs 5(b)(i) to (iii).

  • (2) Despite subsection (1) and section 5, an association may exclude from a promotion referred to in paragraph (1)(f) or 5(b) any person

    • (a) in respect of whom the promotion would contravene an Act of Parliament or of the legislature of a province;

    • (b) who has given written notice to the association or to a body corporate that is part of the cooperative credit system and that is involved in the promotion, that the person does not wish to receive promotional material from the association or the body corporate;

    • (c) who is the holder of a credit or charge card referred to in subparagraph 5(b)(i) and in respect of which the account is not in good standing; or

    • (d) who is a member of a local cooperative credit society that has notified the association in writing that it does not wish its members to receive any promotional material from the association.

  • SOR/2011-185, s. 4.

WEB PROMOTION

  •  (1) The promotion referred to in paragraph 5(b) may take place on an association web page if it relates to an insurance company, agent or broker that deals only in authorized types of insurance and the promotion referred to in paragraph 6(1)(d) or (f) may take place on an association web page if it relates to only an authorized type of insurance.

  • (2) However, an association shall not, on an association web page, provide access to a web page — directly or through another web page — through which there is promotion of

    • (a) an insurance company, agent or broker that does not deal only in authorized types of insurance; or

    • (b) an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, that is not of only an authorized type of insurance.

  • SOR/2011-185, s. 5.

PROHIBITED ACTIVITIES

  •  (1) No association shall

    • (a) directly or indirectly provide to an insurance company, agent or broker any information respecting

      • (i) a customer in Canada of a body corporate that is a member of the association,

      • (ii) a customer of the association in Canada, if it is a retail association,

      • (iii) an employee of a customer referred to in subparagraphs (i) or (ii),

      • (iv) if a customer referred to in subparagraphs (i) or (ii) is an entity with members in Canada, any such member, or

      • (v) if a customer referred to in subparagraph (i) or (ii) is a partnership with partners in Canada, any such partner;

    • (b) permit any of its subsidiaries to directly or indirectly provide to an insurance company, agent or broker any information that the subsidiary receives from the association respecting a person referred to in any of subparagraphs (a)(i) to (v); or

    • (c) permit a subsidiary of the association that is a trust or loan corporation incorporated by or under an Act of the legislature of a province to directly or indirectly provide to an insurance company, agent or broker any information respecting

      • (i) a customer in Canada of the subsidiary,

      • (ii) an employee of a customer referred to in subparagraph (i),

      • (iii) if a customer referred to in subparagraph (i) is an entity with members in Canada, any such member, or

      • (iv) if a customer referred to in subparagraph (i) is a partnership with partners in Canada, any such partner.

  • (2) Subsection (1) does not apply in respect of an association, or a subsidiary of an association that is a trust or loan corporation incorporated by or under an Act of the legislature of a province, if

    • (a) the association or subsidiary has established procedures to ensure that the information referred to in that subsection will not be used by an insurance company, agent or broker to promote, in Canada, the company, agent or broker, an insurance policy or a service in respect of an insurance policy; and

    • (b) the insurance company, agent or broker, as the case may be, has given an undertaking to the association or subsidiary, in a form acceptable to the Superintendent, that the information will not be used to promote in Canada the insurance company, agent or broker, an insurance policy or a service in respect of an insurance policy.

 No association shall provide a telecommunications device that is primarily for the use of customers or members in Canada of a local cooperative credit society or a retail association and that links a customer or member with an insurance company, agent or broker.

 A retail association shall not carry on business in Canada on premises that are adjacent to the premises of an insurance company, agent or broker unless the retail association clearly indicates to its customers that its business and the premises on which its business is carried on are separate and distinct from those of the insurance company, agent or broker.

  • SOR/2011-185, s. 6.

COMING INTO FORCE

 These Regulations come into force on the day on which they are registered.