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

Marginal note:Society’s business

• 542 (1) Except as otherwise permitted by this Act, a society shall not carry on a business that does not relate to the business of the insuring of risks in respect of its members or the spouses, common-law partners or children of its members.

• Marginal note:Additional activities

  (2) A society may

  • (a) with the consent of the Minister, engage in activities that are reasonably ancillary to the society’s insurance business;

  • (b) engage in fraternal, benevolent or religious activities;

  • (c) hold, manage and otherwise deal with real property;

  • (d) act as an agent for a person, or enter into any other arrangement with a person, in respect of the provision of a service by

    • (i) a financial institution that is primarily engaged in an insurance business, or

    • (ii) a body corporate in which a society is permitted by section 554 to have a substantial investment; and

  • (e) refer persons to a financial institution or body corporate described in paragraph (d).

• Marginal note:By-law required

  (3) A society shall not carry on the business of insuring risks unless it is authorized to do so by a by-law of the society passed on the recommendation of the society’s actuary and approved by the Superintendent.

• Marginal note:Classes of insurance

  (4) A society shall not insure a risk that is not within a class of insurance that is specified in the order of the Superintendent approving the commencement and carrying on of business by the society. The classes that may be specified in that order are the class of life insurance, the class of accident and sickness insurance or both of those classes.

• Marginal note:Restriction on leasing

  (5) A society shall not engage in Canada in any financial leasing of personal property.