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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 XIIIForeign Companies (continued)

Investments (continued)

General Constraints on Investments

Marginal note:Investment standards

  •  (1) A foreign company shall, in respect of its assets in Canada, establish and adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return.

  • Marginal note:Resolution of board of directors

    (2) A foreign company to which subsection 573(4) applies shall, during the period of ninety days following the coming into force of this Part, file with the Superintendent a certified copy of a resolution of its board of directors establishing the investment and lending policies, standards and procedures referred to in subsection (1).

Commercial Lending by Foreign Life Companies

Marginal note:Lending limit — foreign life companies

  •  (1) The total accepted value of commercial loans vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • Marginal note:Lending limit — foreign composite companies

    (2) The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • 1991, c. 47, s. 616
  • 2007, c. 6, s. 292

Consumer and Commercial Lending by Foreign Property and Casualty Companies and Foreign Marine Companies

Marginal note:Lending limit — foreign property and casualty companies and foreign marine companies

 The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.

  • 1991, c. 47, s. 617
  • 2007, c. 6, s. 292

Real Property

Marginal note:Limit on total property interest — foreign life companies

  •  (1) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • Marginal note:Limit on total property interest — foreign composite companies

    (2) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • Marginal note:Limit on total property interest — foreign property and casualty companies and foreign marine companies

    (3) The total accepted value of interests in real property vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.

  • 1991, c. 47, s. 618
  • 2007, c. 6, s. 292

Equities

Marginal note:Limit on equity acquisitions — foreign life companies

  •  (1) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • Marginal note:Limit on equity acquisitions — foreign composite companies

    (2) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of insurance, other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.

  • Marginal note:Limit on equity acquisitions — foreign property and casualty companies and foreign marine companies

    (3) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.

  • 1991, c. 47, s. 619
  • 2007, c. 6, s. 292

Aggregate Limit

Marginal note:Limit on aggregate value

 The aggregate value of each of the following total accepted values, namely,

  • (a) the total accepted values referred to in subsections 618(1) and 619(1),

  • (b) the total accepted values referred to in subsections 618(2) and 619(2), and

  • (c) the total accepted values referred to in subsections 618(3) and 619(3),

shall not at any time exceed the respective prescribed percentage of the value of the assets in Canada.

Self-dealing

Marginal note:Prohibited transactions

 A foreign company shall not vest in trust any asset in accordance with this Part if the asset was acquired through a transaction that at the time of acquisition would be prohibited for a company pursuant to section 521.

Marginal note:Exception

 A foreign company may vest in trust an asset if the asset was acquired through a transaction described in any of sections 524 to 533 and

  • (a) the transaction was entered into on terms and conditions that are at least as favourable to the foreign company as market terms and conditions, as defined in subsection 534(2); and

  • (b) the foreign company files a notice of the vesting with the Superintendent on vesting the asset in trust.

  • 1991, c. 47, s. 622
  • 1997, c. 15, s. 316
  • 2007, c. 6, s. 293

Actuaries

Appointment

Marginal note:Appointment of actuary

  •  (1) A foreign company that is required by this Act to provide the Superintendent with the report of an actuary shall without delay appoint a person to be the actuary of the foreign company for its insurance business in Canada.

  • Marginal note:Notice of appointment

    (2) A foreign company shall, forthwith after the appointment of an actuary of the foreign company, notify the Superintendent in writing of the appointment.

  • 1991, c. 47, s. 623
  • 1997, c. 15, s. 317

 [Repealed, 1997, c. 15, s. 318]

Marginal note:Chief agent

  •  (1) The chief agent of a foreign company may not be appointed as or hold the position of actuary of the foreign company unless authorized in writing by the Superintendent.

  • Marginal note:Duration of authorization

    (2) An authorization under subsection (1) ceases to be in effect on the day specified therein but not later than the day that is six months after it is issued, and a person appointed or holding the position of actuary pursuant to the authorization shall not hold that position after that day.

  • 1996, c. 6, s. 88.1

Vacancies

Marginal note:Revocation of appointment

  •  (1) A foreign company may revoke the appointment of the actuary of the foreign company.

  • Marginal note:Notice of revocation

    (2) A foreign company shall, forthwith after the revocation of the appointment of the actuary of the foreign company, notify the Superintendent in writing of the revocation.

Marginal note:Ceasing to hold office

  •  (1) A person ceases to hold office as the actuary of a foreign company when

    • (a) the person resigns as actuary of the foreign company;

    • (b) the person ceases to be an actuary;

    • (c) the person dies; or

    • (d) the appointment of the person as actuary of the foreign company is revoked by the foreign company.

  • Marginal note:Effective date of resignation

    (2) The resignation of an actuary of a foreign company becomes effective at the time a written resignation is sent to the foreign company or at the time specified in the resignation, whichever is later.

  • Marginal note:Filling vacancy

    (3) Where a vacancy occurs in the office of actuary of a foreign company, the foreign company shall forthwith notify the Superintendent in writing of the vacancy and fill the vacancy.

  • 1991, c. 47, s. 626
  • 1997, c. 15, s. 319
 
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