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Insurance Companies Act (S.C. 1991, c. 47)

Act current to 2021-02-15 and last amended on 2019-06-17. Previous Versions

PART VIIIBusiness and Powers (continued)

General (continued)

Marginal note:Networking

  •  (1) A company may

    • (a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, a permitted entity as defined in subsection 490(1) or a prescribed entity;

    • (b) enter into an arrangement with any person in respect of the provision of that service; or

    • (c) refer any person to any such financial institution or entity.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations respecting the disclosure of

    • (a) the name of the principal for whom a company is acting as agent pursuant to subsection (1); and

    • (b) whether any commission is being earned by a company when acting as agent pursuant to subsection (1).

  • 1991, c. 47, s. 442
  • 2001, c. 9, s. 417

Classes of Insurance

Marginal note:Restriction to specified classes of insurance

  •  (1) A company shall not insure a risk unless the risk falls within a class of insurance that is specified in the order of the Superintendent approving the commencement and carrying on of business by the company.

  • Marginal note:Continuation of certificate limitations

    (2) A class of insurance specified in a certificate of registry, issued under Part III of the Canadian and British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn before the coming into force of this Part is deemed to be specified in an order of the Superintendent approving the commencement and carrying on of business by the company.

Marginal note:Restriction to reinsurance

  •  (1) A company may reinsure, but shall not otherwise insure, a risk falling within a class of insurance specified in the order of the Superintendent approving the commencement and carrying on of business by the company if the order limits the company to the reinsurance of those risks.

  • Marginal note:Continuation of certificate conditions

    (2) A condition that limits a company to the reinsurance of risks falling within a class of insurance and that is contained in a certificate of registry issued under Part III of the Canadian and British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn before the coming into force of this Part is deemed to be a limitation in an order of the Superintendent approving the commencement and carrying on of business by the company.

Marginal note:No new composite companies

 The Superintendent may not make or vary an order approving the commencement and carrying on of business by a company if the company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance.

  • 1991, c. 47, s. 445
  • 1997, c. 15, s. 248
  • 2007, c. 6, s. 218

 [Repealed, 2007, c. 6, s. 218]

Marginal note:Separate accounts

 A company that is authorized to insure risks falling within the class of life insurance and risks falling within one or more other classes of insurance shall maintain separate accounts in respect of each class of insurance within which it is authorized to insure risks.

  • 1991, c. 47, s. 447
  • 1997, c. 15, s. 249

Marginal note:Annuities and endowment insurance restricted to life companies

 Property and casualty companies and marine companies shall not issue annuities or policies of endowment insurance.

  • 1991, c. 47, s. 448
  • 2007, c. 6, s. 219

Marginal note:Compensation association

  •  (1) Every company that is insuring risks that fall within a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance.

  • Marginal note:Designation limitation

    (1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of the Minister, it has the authority to levy an assessment on each of its members.

  • Marginal note:Exceptions

    (2) Subsection (1) does not apply

    • (a) to a company that may reinsure but may not otherwise insure risks;

    • (b) in respect of a class of insurance that, in the opinion of the Minister, is adequately covered by some other compensation plan;

    • (c) in respect of the insurance against the loss of, or damage to, property caused by fire, by lightning, by an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire protection equipment or from another fire protection system by a company that is a member of the Fire Mutuals Guarantee Fund; or

    • (d) in respect of a class of insurance for which the Minister has not designated a compensation association.

  • 1991, c. 47, s. 449
  • 1994, c. 26, s. 42(E)
  • 1996, c. 6, s. 79
  • 2007, c. 6, s. 220

Segregated Funds

Marginal note:Segregated funds restricted to life companies

 A property and casualty company, or a marine company, shall not issue policies — or accept or retain, on the direction of a policyholder or beneficiary, policy dividends or bonuses, or policy proceeds that are payable on the surrender or maturity of the policy or on the death of the person whose life is insured — if the liabilities of the company in respect of the policies or the amounts accepted or retained vary in amount depending on the market value of a fund consisting of a specified group of assets.

  • 1991, c. 47, s. 450
  • 2007, c. 6, s. 221

Marginal note:Where segregated funds required

 A life company that issues policies described in section 450 or accepts or retains amounts so described shall, in respect of those policies or amounts,

  • (a) maintain separate accounts; and

  • (b) establish and maintain one or more funds consisting of assets that are segregated from the other assets of the company and that are specified as the assets on the market value of which the liabilities of the company in respect of those policies or amounts depend.

Marginal note:Establishment and maintenance of segregated funds

 For the purpose of establishing or maintaining a segregated fund required to be established and maintained by section 451, a company may, subject to the regulations and, in the case of a transfer from a participating account maintained pursuant to section 456, to section 463, transfer an amount to the separate account maintained in respect of the segregated fund.

  • 1991, c. 47, s. 452
  • 1994, c. 26, s. 43

Marginal note:Transfers from segregated funds

 A company may return the current value of an amount transferred under section 452 to the account from which the amount was transferred.

  • 1991, c. 47, s. 453
  • 2007, c. 6, s. 222

Marginal note:Claims against segregated funds

 A claim against a segregated fund maintained as required by section 451 under a policy or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund.

  • 1991, c. 47, s. 454
  • 1996, c. 6, s. 167
  • 1997, c. 15, s. 250

Marginal note:Restriction of claims

 The liability of a company under a policy or for an amount in respect of which a segregated fund is maintained pursuant to section 451

  • (a) does not, except to the extent that the assets of the fund are insufficient to satisfy a claim for any minimum amount that the company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets of the company, other than the assets of that fund,

but

  • (b) to the extent that the assets of the fund are insufficient to satisfy such a claim, gives rise to a claim against the assets of the company, other than the assets of that fund, that has the priority referred to in subsection 161(2) of the Winding-up and Restructuring Act.

  • 1991, c. 47, s. 455
  • 1996, c. 6, s. 167
 
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