Insurance Business (Trust and Loan Companies) Regulations (SOR/92-331)

Regulations are current to 2014-10-15 and last amended on 2012-03-01. Previous Versions

Insurance Business (Trust and Loan Companies) Regulations

SOR/92-331

TRUST AND LOAN COMPANIES ACT

Registration 1992-05-21

Insurance Business (Trust and Loan Companies) Regulations

P.C. 1992-1107  1992-05-21

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 416 of the Trust and Loan Companies ActFootnote *, is pleased hereby to make the annexed Regulations respecting the extent to which a company may undertake the business of insurance and relations between companies and entities that undertake the business of insurance, insurance agents and insurance brokers, effective June 1, 1992.

 [Repealed, SOR/2002-270, s. 2]

INTERPRETATION

 In these Regulations,

“Act”

“Act” means the Trust and Loan Companies Act. (Loi)

“authorized type of insurance”

“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; (assurance autorisée)

“company web page”

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

“credit or charge card-related insurance”

“credit or charge card-related insurance”, in respect of a company, means a policy of an insurance company that provides insurance to the holder of a credit or charge card issued by the company 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 holder when renting a vehicle, when the rental is paid for with the card; (assurance carte de crédit ou de paiement)

“creditors’ disability insurance”

“creditors’ disability insurance”, in respect of a company, means a group insurance policy that will pay all or part of the amount of a debt of a debtor to the company, or to a provincial trust or loan company that is an affiliate of the company, 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, any director or 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 company or to the provincial trust or loan company; (assurance-invalidité de crédit)

“creditors’ life insurance”

“creditors’ life insurance”, in respect of a company, means a group insurance policy that will pay to the company, or to a provincial trust or loan company that is an affiliate of the company, all or part of the amount of a debt of a debtor or, where a 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 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 company or to the provincial trust or loan company; (assurance-vie de crédit)

“creditors’ loss of employment insurance”

“creditors’ loss of employment insurance”, in respect of a company, means a policy of an insurance company that will pay, without any individual assessment of risk, all or part of the amount of a debt of a debtor to the company, or to a provincial trust or loan company that is an affiliate of the company, in the event that

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

  • (b) a natural person who is a guarantor of all or part of the debt becomes involuntarily unemployed; (assurance crédit en cas de perte d’emploi)

“creditors’ vehicle inventory insurance”

“creditors’ vehicle inventory insurance”, in respect of a company, means a policy of an insurance company that provides insurance against direct and accidental loss or damage to vehicles that are held in stock for display and sale purposes by a debtor of the company, some or all of which have been financed by the company; (assurance crédit pour stocks de véhicules)

“export credit insurance”

“export credit insurance” means a policy of an insurance company that provides insurance to an exporter of goods or services against a loss incurred by the exporter due to a non-payment for exported goods or services; (assurance crédit des exportateurs)

“group insurance policy”

“group insurance policy”, in respect of a company, means a contract of insurance between an insurance company and the company, or between an insurance company and a provincial trust or loan company that is an affiliate of the company, that provides insurance severally in respect of a group of identifiable persons who individually hold certificates of insurance; (police d’assurance collective)

“insurance company”

“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; (société d’assurances)

“line of credit”

“line of credit” means a commitment on the part of a company to lend to a debtor, 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; (marge de crédit)

“mortgage insurance”

“mortgage insurance”, in respect of a company, means an insurance policy that provides insurance to the company, or to a provincial trust or loan company that is an affiliate of the company, against loss caused by a default on the part of a debtor who is a natural person under a loan from the company or from the provincial trust or loan company that is secured by a mortgage on real property or on an interest in real property; (assurance hypothèque)

“personal accident insurance”

“personal accident insurance” means a group insurance policy that provides insurance to a natural person

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

  • (b) whereby the insurance company undertakes to pay a certain sum 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; (assurance accidents corporels)

“provincial trust or loan company”

“provincial trust or loan company” means a trust corporation or loan corporation incorporated by or under an Act of the legislature of a province; (société de fiducie ou de prêt provinciale)

“small business”

“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; (petite entreprise)

“travel insurance”

“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 while on the trip, or

    • (iii) loss that is caused by the delayed arrival of personal baggage while on 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 while on the trip that result from an illness or the disability of the person that occurs on the trip,

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

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

    • (iv) against expenses incurred by the person for dental care necessitated by an accident while on the trip, or

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

  • SOR/2001-195, s. 1;
  • SOR/2002-270, s. 3;
  • SOR/2011-186, s. 1.

 For the purposes of these Regulations, a web page is not a company web page by reason only that the web page provides access to a company web page or promotes the business of a company in Canada.

  • SOR/2011-186, s. 2.

PERMITTED ACTIVITIES

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

  • SOR/2011-186, s. 3.
  •  (1) A company may administer an authorized type of insurance and personal accident insurance.

  • (2) A company may administer a group insurance policy for

    • (a) its employees or the employees of an entity that the company holds control of, or a substantial investment in, under section 453 of the Act;

    • (b) the employees of another company that controls the company or of an entity that the other company holds control of, or a substantial investment in, under section 453 of the Act;

    • (c) the employees of

      • (i) a bank or a bank holding company, that controls the company, or

      • (ii) an entity that the bank or the bank holding company, referred to in subparagraph (i), holds control of, or a substantial investment in, under section 468 or 930 of the Bank Act;

    • (d) the employees of an entity that an affiliate of the company holds control of, or a substantial investment in, in accordance with section 522.07 or 522.08 or subsection 522.32(1) or (3) of the Bank Act;

    • (e) the employees in Canada of an authorized foreign bank that is an affiliate of the company; and

    • (f) if the company is controlled by a foreign bank, the employees in Canada of an affiliate of the foreign bank that is an entity referred to in section 522.17 or 522.18 of the Bank Act and that carries on a business described in one of those sections.

  • SOR/2002-270, s. 4.
  •  (1) A company may provide advice regarding an authorized type of insurance or a service in respect of an authorized type of insurance.

  • (2) A company may provide advice in respect of an insurance policy that is not of an authorized type of insurance, or services in respect thereof, if

    • (a) the advice is general in nature;

    • (b) the advice is not in respect of

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

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

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

PROMOTION

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

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

  • (b) the promotion takes place outside a branch of the company and is directed to

    • (i) all the holders of credit or charge cards issued by the company who regularly receive statements of account or notices of those statements,

    • (ii) all the company’s customers who are natural persons and who regularly receive statements of account or notices of those statements, or

    • (iii) the general public.

  • SOR/2011-186, s. 4.
  •  (1) A company 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 to be provided by a corporation without share capital, other than a mutual insurance company or a 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;

    • (c) the policy is a personal accident insurance policy and the promotion takes place outside a branch of the company;

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

    • (e) the promotion takes place outside a branch of the company and is directed to

      • (i) all the holders of credit or charge cards issued by the company who regularly receive statements of account or notices of those statements,

      • (ii) all the company’s customers who are natural persons and who regularly receive statements of account or notices of those statements, or

      • (iii) the general public.

  • (2) Notwithstanding subsection (1) and section 6, a company may exclude from a promotion referred to in paragraph (1)(e) or 6(b) persons

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

    • (b) who have notified the company in writing that they do not wish to receive promotional material from the company; or

    • (c) who are holders of a credit or charge card that was issued by the company and in respect of which the account is not in good standing.

  • SOR/95-171, s. 7(E);
  • SOR/2011-186, s. 5.

WEB PROMOTION

  •  (1) The promotion referred to in paragraph 6(b) may take place on a company 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 7(1)(c) or (e) may take place on a company web page if it relates to only an authorized type of insurance.

  • (2) However, a company shall not, on a company 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/2011-186, s. 6.

PROHIBITED ACTIVITIES

  •  (1) No company shall

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

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

      • (ii) an employee of a customer of the company in Canada,

      • (iii) where a customer of the company is an entity with members in Canada, any such member, or

      • (iv) where a customer of the company is a partnership with partners in Canada, any such partner;

    • (b) permit any of its subsidiaries to provide, directly or indirectly, an insurance company, agent or broker with any information that it receives from the company respecting

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

      • (ii) an employee of a customer of the company in Canada,

      • (iii) where a customer of the company is an entity with members in Canada, any such member, or

      • (iv) where a customer of the company is a partnership with partners in Canada, any such partner;

    • (b.1) provide an affiliate of the company that is not a subsidiary of the company with information unless the company ensures that the affiliate does not directly or indirectly provide the information to an insurance company, agent or broker if the information is in respect of

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

      • (ii) an employee of a customer of the company in Canada,

      • (iii) where a customer of the company is an entity with members in Canada, any such member,

      • (iv) where a customer of the company is a partnership with partners in Canada, any such partner; or

    • (c) permit a subsidiary of the company that is a provincial trust or loan company to provide, directly or indirectly, an insurance company, agent or broker with any information respecting

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

      • (ii) an employee of a customer of the subsidiary in Canada,

      • (iii) where a customer of the subsidiary is an entity with members in Canada, any such member, or

      • (iv) where a customer of the subsidiary is a partnership with partners in Canada, any such partner.

  • (2) Subsection (1) does not apply in respect of a company or a subsidiary of a company that is a provincial trust or loan company where

    • (a) the company or the 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 insurance company, agent or broker or to promote in Canada an insurance policy, or a service in respect thereof; and

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

  • SOR/2002-270, s. 5.

 No company shall provide a telecommunications device that is primarily for the use of customers in Canada and that links a customer with an insurance company, agent or broker.

 A company shall not carry on business in Canada on premises that are adjacent to the premises of an insurance company, agent or broker unless the company 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/2011-186, s. 7.

TRANSITIONAL

 Where a company administered a policy on May 6, 1992 the administration of which is not permitted under section 4, the company may continue to administer the policy in respect of any person in respect of whom coverage was provided under the policy on that date.