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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)

Auditors (continued)

Examinations and Reports (continued)

Marginal note:Report to chief agent

  •  (1) It is the duty of the auditor of a foreign company to report in writing to the chief agent of the foreign company any transactions or conditions in respect of the insurance business in Canada of the foreign company that have come to the auditor’s attention affecting the well-being of the foreign company that in the auditor’s opinion are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor shall, as occasion requires, make a report to the chief agent in respect of transactions in respect of the insurance business in Canada of the foreign company that have come to the auditor’s attention and that in the auditor’s opinion have not been within the powers of the foreign company.

  • Marginal note:Transmission of report

    (2) Where the auditor of a foreign company makes a report under subsection (1), the auditor shall, at the time of transmitting the report to the chief agent provide the Superintendent with a copy of the report.

Qualified Privilege

Marginal note:Qualified privilege for statements

 Any oral or written statement or report made under this Act by the auditor or a former auditor of a foreign company has qualified privilege.

Records

Marginal note:Records

  •  (1) A foreign company shall prepare and maintain

    • (a) copies of all orders of the Superintendent in relation to the foreign company;

    • (b) accounting records respecting its insurance business in Canada; and

    • (c) with respect to its insurance business in Canada, records showing, for each customer of, or claimant under a policy issued by, the foreign company, the amount owing to the foreign company and the nature of the liabilities of the foreign company to the customer or claimant.

  • Marginal note:Standards for record keeping

    (2) The records described in paragraphs (1)(b) and (c) shall be kept in a manner that enables the chief agent of the foreign company to provide the Superintendent with the information required by section 664 and with the annual return required by subsection 665(2).

  • Marginal note:Place of records

    (3) The records described in subsection (1) shall be kept at the chief agency of the foreign company.

  • 1991, c. 47, s. 647
  • 2001, c. 9, s. 449
  • 2007, c. 6, s. 297

Marginal note:Examination of books

 The Superintendent may examine the books, vouchers, receipts and other documents of a foreign company relating to its insurance business in Canada for the purpose of verifying information provided to the Superintendent pursuant to section 664 or 665.

Marginal note:Sections 266 to 270 apply

 Section 266 to 270 apply, with such modifications as the circumstances require, to foreign companies.

Release of Assets

Marginal note:Application for release of assets in Canada

 A foreign company that proposes to cease to insure in Canada risks may apply to the Superintendent for the release of its assets in Canada.

  • 1991, c. 47, s. 650
  • 2007, c. 6, s. 298

Marginal note:Conditions of release

 Except as otherwise provided in this Act, the Superintendent may, by order, authorize the release of the assets in Canada of a foreign company if the foreign company

  • (a) has, in respect of its policies,

    • (i) obtained their surrender,

    • (ii) transferred them,

    • (iii) caused itself to be reinsured, on an assumption basis, against the risks undertaken under them, or

    • (iv) otherwise discharged its liabilities under them, or provided for their discharge in a manner satisfactory to the Superintendent;

  • (b) has discharged all of its obligations, other than liabilities under its policies, or provided for them in a manner satisfactory to the Superintendent; and

  • (c) has provided the Superintendent with proof of the publication, for four consecutive weeks, in the Canada Gazette and in at least one newspaper of general circulation at or near the place where the chief agency of the foreign company is situated, of a notice that it will apply to the Superintendent for the release of its assets in Canada on a day specified in the notice, which must be at least six weeks after the date of the notice, and calling on its creditors and policyholders opposing that release to file their opposition with the Superintendent on or before the day.

  • 1991, c. 47, s. 651
  • 1996, c. 6, s. 90
  • 2007, c. 6, s. 298

Marginal note:Release of assets to liquidator

 Despite sections 650 and 651, the assets in Canada of a foreign company that is in liquidation may, on the order of any court having jurisdiction under the Winding-up and Restructuring Act, be released to the liquidator.

  • 1991, c. 47, s. 652
  • 2007, c. 6, s. 298

Marginal note:Revocation of order

 The Superintendent may revoke the order made under subsection 574(1) in respect of a foreign company if in the opinion of the Superintendent the foreign company is not insuring in Canada risks, or if the foreign company does not

  • (a) provide information to the Superintendent as required by section 664;

  • (b) provide the annual return to the Superintendent as required by section 665;

  • (c) permit the examination authorized by section 648 or 674; or

  • (d) provide any information in its possession or control that is requested for the purpose of any such examination.

  • 1991, c. 47, s. 653
  • 2007, c. 6, s. 298

Marginal note:Deemed revocation

 An order made under subsection 574(1) in respect of a foreign company is deemed to be revoked when an order is made under section 651 or 652 authorizing the release of its assets in Canada.

  • 1991, c. 47, s. 654
  • 1996, c. 6, s. 167
  • 2007, c. 6, s. 298

 [Repealed, 2007, c. 6, s. 298]

PART XIVProvincial Companies

Application

Marginal note:Application of other provisions

  •  (1) Divisions XII to XIV of Part VI, other than subsection 330(2), Parts VIII to XI and Part XX apply to provincial companies.

  • Marginal note:Idem

    (2) Subsections 15(1) and (2) and sections 254 to 256 and 268 apply, with such modifications as the circumstances require, to every provincial company for which an order for the commencement and carrying on of business under this Part has been made to the same extent that they are applicable to, or in respect of, a company, but to the extent to which any provision referred to in this section would effect an enlargement, in any respect, of the corporate powers or rights of any provincial company under its incorporating instrument, that provision does not apply to the provincial company.

  • 1991, c. 47, s. 656
  • 2005, c. 54, s. 303

Order to Commence and Carry on Business

Marginal note:Making of order

  •  (1) Forthwith on the coming into force of this Part, the Superintendent shall make an order approving the commencement and carrying on of business by every provincial company.

  • Marginal note:Order to specify classes of insurance

    (2) An order approving the commencement and carrying on of business by a provincial company under subsection (1) shall specify the classes of insurance risks that the provincial company is permitted to insure pursuant to section 443, as applied by subsection 656(1).

  • Marginal note:Conditions of order

    (3) An order approving the commencement and carrying on of business by a provincial company may contain such conditions or limitations that are consistent with this Act and relate to the business of the provincial company as the Superintendent deems expedient and necessary.

  • Marginal note:Variations

    (4) In respect of the order approving the commencement and carrying on of business by a provincial company, the Superintendent may at any time, by further order,

    • (a) specify additional classes of insurance risks that the provincial company is permitted to insure pursuant to section 443, as applied by subsection 656(1),

    • (b) make the order subject to such conditions or limitations that are consistent with this Act and that relate to the business of the provincial company as the Superintendent deems expedient and necessary, or

    • (c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,

    but before making any such further order the Superintendent shall provide the provincial company with an opportunity to make representations regarding that further order.

  • (5) and (6) [Repealed, 1996, c. 6, s. 91]

  • 1991, c. 47, s. 657
  • 1996, c. 6, s. 91
 
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