PART VIIIBusiness and Powers (continued)
Marginal note:Report of actuary
464.1 (1) The actuary of a company that has adjustable policyholders shall, annually and in writing, report to the directors on whether the changes that the company made in respect of its adjustable policies during the preceding 12 months are in accordance with the criteria established under paragraph 165(2)(e.2) and are fair to the adjustable policyholders.
Marginal note:Generally accepted actuarial practice
(1.1) The report of the actuary referred to in subsection (1) shall be prepared in accordance with generally accepted actuarial practice with such changes as may be determined by the Superintendent and any additional directions that may be made by the Superintendent.
Marginal note:Information to policyholder
(2) A company that made changes in respect of its adjustable policies during the preceding 12 months shall within the prescribed period send the prescribed information to the policyholder, if the adjustable policy was issued in Canada or if it confers voting rights.
Marginal note:Information to policyholder — renewal
(3) In the case of the renewal of an adjustable policy, the company shall within the prescribed period send the prescribed information to the policyholder.
- 2005, c. 54, s. 297
- 2012, c. 5, s. 130
Marginal note:Regulation may provide for discretion
(2) A regulation made pursuant to subsection (1) may provide that the Superintendent may, by order, determine the matters or exercise the discretion that the regulation may specify.
- 1991, c. 47, s. 465
- 2007, c. 6, s. 226
Marginal note:Restriction on fiduciary activities
466 No company shall act in Canada as
(a) an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or
(b) a trustee for a trust.
Marginal note:Restriction on deposit taking
467 Except as otherwise permitted by this Act, a company shall not accept deposits.
- 1991, c. 47, s. 467
- 1999, c. 31, s. 143(F)
Marginal note:Restriction on securities activities
468 A company shall not deal in Canada in securities to the extent prohibited or restricted by such regulations as the Governor in Council may make for the purposes of this section.
468.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the company, unless
(b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and
(c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
(2) The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1).
- 2012, c. 19, s. 363
Marginal note:Restriction on residential mortgages
469 (1) A company shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
(2) Subsection (1) does not apply in respect of
(a) a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or pursuant to which a different limit on the value of property on the security of which the company may make a loan is established;
(b) a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent;
(c) the acquisition by the company from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the company to the entity against the issue of such securities; or
(d) a loan secured by a mortgage where
- 1991, c. 47, s. 469
- 1997, c. 15, s. 253
- 2007, c. 6, s. 227
Marginal note:Restriction on charges to borrowers
469.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee.
(2) The Governor in Council may make regulations
(a) respecting the determination of the actual cost to a company for the purposes of subsection (1);
(b) respecting the circumstances in which a company is exempt from the application of subsection (1);
(c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property,
(d) respecting any other matters necessary to carry out the purposes of subsection (1).
Marginal note:Regulations — disclosure
(3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting
(a) the information that must be disclosed, including information relating to
(i) the person who benefits from the insurance or guarantee,
(ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and
(iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates;
(b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and
(c) the circumstances under which a company is not required to disclose information.
- 2009, c. 2, s. 283
- 2012, c. 5, s. 131(E)
Marginal note:Policies re security interests
470 (1) The directors of a company shall establish and the company shall adhere to policies regarding the creation of security interests in property of the company to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests.
Marginal note:Order to amend policies
(2) The Superintendent may, by order, direct a company to amend its policies as specified in the order.
(3) A company shall comply with an order made under subsection (2) within the time specified in the order.
- 1991, c. 47, s. 470
- 2001, c. 9, s. 418
- Date modified: