Insurance Companies Act

Marginal note:Compensation association

• 591 (1) Every foreign company that has outstanding policies in Canada of a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance.

• Marginal note:Designation limitation

  (1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of the Minister, it has the authority to levy an assessment on each of its members of not less than eighty-five one hundredths of one per cent of the member’s average annual premium income from policies that are eligible for compensation from the association.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply

  • (a) to a foreign company that may reinsure but may not otherwise insure risks;

  • (b) in respect of a class of insurance that, in the opinion of the Minister, is adequately covered by some other compensation plan for that class of insurance;

  • (c) in respect of the insuring in Canada of risks falling within the class of fire insurance by a foreign company that is a member of the Fire Mutuals Guarantee Fund; or

  • (d) to a foreign company that is a foreign fraternal benefit society or a reciprocal or inter-insurance exchange.