An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Marginal note:Application for order

• 574. (1) On application by a foreign entity, the Superintendent may, with the approval of the Minister but subject to the other provisions of this Part, make an order approving the insuring in Canada of risks by the foreign entity.

• Marginal note:Reciprocal treatment

  (2) If the application is made by a foreign entity that is not controlled by a WTO Member resident, the Minister shall not approve the making of an order under subsection (1) unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign entity principally carries on business, either directly or through a subsidiary.

Marginal note:Prohibited names

• 575. (1) An order made under subsection 574(1) may not provide for the use of a name that

  • (a) is prohibited by an Act of Parliament;

  • (b) is, in the opinion of the Superintendent, deceptively misdescriptive;

  • (c) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trade-mark, trade name or corporate name of a body corporate, except where

    • (i) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and

    • (ii) consent to the use of the trade-mark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require;

  • (d) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or

  • (e) is reserved under section 45 for a company or society or proposed company or society.

• Marginal note:Affiliated entity

  (2) Despite subsection (1), an order made under subsection 574(1) may provide for the use of a name that is the same or substantially the same as that of an entity with which the foreign entity is affiliated, within the meaning of subsection 6(2), if that other entity consents to the use of the name.

• Marginal note:Representations to Superintendent

  (3) If the Superintendent does not make an order for one of the reasons specified in subsection (1), he or she must, by a notice in writing to that effect, give the foreign entity and any other interested party an opportunity to make representations.

Marginal note:Direction to change of name

• 577. (1) If through inadvertence or otherwise a foreign company is permitted by an order made under subsection 574(1) to insure risks under a name that is prohibited by section 575, the Superintendent may direct the foreign company to change the name without delay.

Marginal note:French, English or foreign form of name

• 578. (1) The name under which a foreign company is authorized to insure risks, as set out in the order made under subsection 574(1), may be in an English form, a French form, an English form and a French form, a combined English and French form or a form combining words in a language other than English or French with one of the forms specified in this subsection.

• Marginal note:Other name

  (2) Subject to subsections (3) and (4), a foreign company may carry on its insurance business in Canada under a name other than the name set out in the order made under subsection 574(1) in respect of the foreign company.

• Marginal note:Direction to change name

  (3) If a foreign company carries on its insurance business in Canada under a name other than a name set out in the order made under subsection 574(1) in respect of the foreign company, the Superintendent may direct the foreign company not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 575(1)(a) to (e).

• Marginal note:Publication of name

  (4) A foreign company shall set out, or cause to be set out, its name and, if different, the name under which it is authorized to insure risks, in legible characters in all contracts, premium notices, applications for policies, policies, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the foreign company.

• Marginal note:Publication of statement

  (5) A foreign company shall set out or cause to be set out in legible characters in all premium notices, applications for policies and policies that are issued or made by or on behalf of the foreign company a statement that the document was issued or made in the course of its insurance business in Canada.

• Marginal note:Continuation of registered names

  (6) The name of a foreign company, as set out in a certificate of registry referred to in subsection 573(4), or in any other authorization, is deemed to be set out in an order of the Superintendent made under subsection 574(1) in respect of the foreign company.

Marginal note:Application

• 579. (1) An application for an order under subsection 574(1) must be filed with the Superintendent, together with the information, material and evidence that the Superintendent may require, including

  • (a) documents relating to the constitution of the foreign entity;

  • (b) a power of attorney to the chief agent appointed under subsection (3), in the form that the Superintendent may require;

  • (c) a statement, in the form that the Superintendent may require, of the financial condition of the foreign entity and of the business of insurance undertaken by the foreign entity, and any additional statements or information that the Superintendent may require as to its solvency and its ability to meet all of its obligations;

  • (d) evidence satisfactory to the Superintendent that the foreign entity is authorized under the laws of the country where it is incorporated or formed to insure risks within each class of insurance in Canada that that foreign entity has applied to insure;

  • (e) in the case of a foreign fraternal benefit society,

    • (i) a report of an actuary appointed by the foreign fraternal benefit society, in the form that the Superintendent may require, on the results of an actuarial valuation made by the actuary, as of the preceding December 31 or as of any later date specified by the Superintendent, of each of the benefit funds maintained by the foreign fraternal benefit society, having regard to the prospective liabilities of and contributions to each fund, and

    • (ii) the opinion of the actuary that the assets of the foreign fraternal benefit society applicable to each fund, taken at the value accepted by the Superintendent, together with the premiums, dues and other contributions to be received after the date of the valuation from the members according to the scale in force at the date of the valuation, are sufficient to provide for the payment at maturity of all of the obligations of the fund without deduction or abatement; and

  • (f) a copy of the resolution respecting the investment and lending policies, standards and procedures that the foreign entity is to establish and adhere to in accordance with subsection 615(1).

• Marginal note:Contents of power of attorney

  (2) A power of attorney referred to in paragraph (1)(b) must expressly authorize the chief agent to receive all notices under the laws of Canada from the Minister or the Superintendent.

Marginal note:Publishing notice of intention

580. Before filing an application referred to in subsection 579(1), a foreign entity must, at least once a week for four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its chief agency is to be situated if it is granted an order under subsection 574(1).

Marginal note:Conditions for order

• 581. (1) The Superintendent shall not make an order under subsection 574(1) in respect of a foreign entity until it has been shown to the satisfaction of the Superintendent that all relevant requirements of this Act have been complied with and that the foreign entity has

  • (a) vested in trust assets having a prescribed value;

  • (b) appointed an actuary under section 623 and an auditor under section 633; and

  • (c) established its chief agency.

• Marginal note:Conditions of order

  (2) The order may contain any conditions or limitations that are consistent with this Act and that the Superintendent considers appropriate.

Marginal note:Permissible securities

• 582. (1) The assets of a foreign entity to be vested in trust are to consist of unencumbered securities of or guaranteed by Canada or a province.

• Marginal note:Other permissible securities

  (2) The assets of a foreign entity to be vested in trust may also consist of other securities at the accepted value and on the conditions established by the Superintendent.

Marginal note:Contents of order

583. An order made under subsection 574(1) in respect of a foreign company must set out

• (a) the name of the foreign company and, if different, the name under which it is authorized to insure risks;

• (b) the day on which the order becomes effective;

• (c) the classes of insurance risks that the foreign company is authorized to insure; and

• (d) the conditions or limitations that are consistent with this Act that are considered appropriate by the Superintendent.