Insurance Companies Act

Marginal note:Restricted transactions

• 587.1 (1) Except in accordance with this section or an order made under subsection 678.6(1), a foreign company shall not

  • (a) transfer all or any portion of its policies in Canada or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada; or

  • (b) purchase or reinsure all or any portion of the policies in Canada of any body corporate.

• Marginal note:Ordinary reinsurance exempted

  (1.1) Subsection (1) does not apply in respect of reinsurance transactions entered into by a foreign company in the ordinary course of its business.

• Marginal note:Approval of the Minister

  (2) A foreign company may, with the approval of the Minister,

  • (a) transfer all or any portion of its policies in Canada to, or cause itself to be reinsured against all or any portion of the risks undertaken by it in respect of its policies in Canada by, a company, society or foreign company that is authorized to transact the classes of insurance to be transferred or reinsured;

  • (a.1) transfer all or any portion of its policies in Canada to any body corporate incorporated under the laws of a province that is authorized to transact the classes of insurance being transferred;

  • (a.2) cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken by it in respect of its policies in Canada by any body corporate incorporated under the laws of a province that is authorized to transact the classes of insurance to be reinsured if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with

    • (i) the appropriate official or public body responsible for the supervision of the body corporate,

    • (ii) the body corporate, or

    • (iii) the appropriate official or public body and the body corporate;

  • (b) cause itself to be reinsured, on an indemnity basis, against all or any portion of the risks undertaken by it in respect of its policies in Canada by any body incorporated under the laws of a province that is authorized to transact the classes of insurance to be reinsured; or

  • (c) purchase or reinsure all or any portion of the policies in Canada of any body corporate.

• Marginal note:Prescribed transactions

  (3) The Minister’s approval is not required for a transaction described in subsection (2) if it is a prescribed transaction or a transaction in a prescribed class of transactions.

• Marginal note:Capital to be unimpaired

  (4) The Minister may not approve a transaction under subsection (2) if the transaction would cause any foreign company that would be a party to it to be in contravention of any regulation referred to in subsection 608(1) or 609(1) or section 610 or of any order made under subsection 608(4) or 609(2).

• Marginal note:Procedure

  (5) The foreign company shall, at least 30 days before it applies for the Minister’s approval, publish a notice in the Canada Gazette and in a newspaper in general circulation in the place where its chief agency is situated stating the day on or after which it will apply.

• Marginal note:Information

  (6) If a foreign company publishes a notice, the Superintendent may direct it to provide its shareholders and policyholders with any information that the Superintendent may require.

• Marginal note:Inspection

  (7) If a foreign company publishes a notice, it shall make the agreement for the transaction that the Minister is asked to approve available at its chief agency for the inspection of its shareholders and policyholders for at least 30 days after the publication of the notice and shall provide a copy of the agreement to any shareholder or policyholder who requests one by writing to the chief agency of the foreign company.

• Marginal note:Superintendent may shorten periods

  (8) If the Superintendent is of the opinion that it is in the best interests of a group of policyholders affected by the transaction that the Minister is asked to approve, the Superintendent may shorten the periods of 30 days referred to in subsections (5) and (7).