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Insurance Companies Act

Version of section 520 from 2003-01-01 to 2007-04-19:


Marginal note:Meaning of “transaction”

  •  (1) For the purposes of this Part, entering into a transaction with a related party of a company includes

    • (a) making a guarantee on behalf of the related party;

    • (b) making an investment in any securities of the related party;

    • (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party;

    • (d) taking a security interest in the securities of the related party; and

    • (e) causing the company to be reinsured by the related party against any risk undertaken by the company.

  • Marginal note:Interpretation

    (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit and the making of a payment or an advance under a policy, is part of the transaction, and not a separate transaction.

  • Marginal note:Meaning of “loan”

    (3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.

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