Interpretation

Definition of Act

1 In these Regulations, Act means the Insurance Companies Act.

Companies

Marginal note:Prescribed international agencies

2 For the purposes of the definition commercial loan in subsection 490(1) of the Act, the prescribed international agencies are

• (a) the International Bank for Reconstruction and Development;

• (b) the International Finance Corporation;

• (c) the Inter-American Development Bank;

• (d) the Asian Development Bank;

• (e) the African Development Bank;

• (f) the European Investment Bank;

• (g) the Caribbean Development Bank;

• (h) the Nordic Investment Bank;

• (i) the European Bank for Reconstruction and Development; and

• (j) the Council of Europe Development Bank.

Definition of widely distributed

• 3 (1) For the purposes of the definition commercial loan in subsection 490(1) of the Act, widely distributed means

  • (a) in respect of debt obligations the distribution of which is exempt from the requirement to file a prospectus under the laws of Canada, a province or a jurisdiction outside Canada, that

    • (i) at least 90% of the maximum authorized principal of the debt obligations is held by one or more persons other than the company and its subsidiaries, and

      • (A) the debt obligations were issued to at least 25 persons other than the company and its subsidiaries within six months after the day on which the first of the debt obligations was issued, or

      • (B) if the debt obligations are issued on a continuous basis, there are on average at least 25 holders other than the company and its subsidiaries, or

    • (ii) at the time of their initial distribution, the debt obligations met at least three of the following criteria:

      • (A) their initial term was less than one year,

      • (B) they were rated by a rating agency,

      • (C) they were distributed through a person authorized to trade in securities, and

      • (D) they were distributed in accordance with an offering circular or memorandum, or a similar document relating to the distribution of securities; or

  • (b) in respect of any other securities, that

    • (i) they are listed and posted for trading on a recognized stock exchange, or

    • (ii) a prospectus relating to the issuance of the securities was filed under the laws of Canada, a province or a jurisdiction outside Canada.

• Definition of maximum authorized principal

  (2) In subparagraph (1)(a)(i) maximum authorized principal means, in relation to any debt obligation, the maximum amount of debt that may be issued under the terms of the debt obligation or any agreement relating to it.

Marginal note:Prescribed subsidiaries of a life company

• 4 (1) For the purposes of sections 503 and 504 of the Act, all subsidiaries of a life company are prescribed subsidiaries of the company.

• Marginal note:Prescribed subsidiaries of a property and casualty company

  (2) For the purpose of section 505 of the Act, a prescribed subsidiary of a property and casualty company is a subsidiary of the company that is not

  • (a) a financial institution;

  • (b) a bank holding company or an insurance holding company;

  • (c) a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the company; or

  • (d) a subsidiary of a bank holding company or an insurance holding company.

Marginal note:Prescribed percentage

5 For the purpose of section 505 of the Act, the prescribed percentage is 5%.

Definition of total assets of a life company

• 6 (1) For the purpose of section 503 of the Act, total assets, in respect of a life company, at a particular time, means the total of the assets that would be reported on the balance sheet of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act.

• Definition of total assets of a property and casualty company

  (2) For the purpose of section 505 of the Act, total assets, in respect of a property and casualty company, at a particular time, means the amount determined by the formula

  A - B

  where

  A

  is the total of the assets that would be reported on the balance sheet of the company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act; and

  B

  is the total of the assets included in the value of A that are assets of a subsidiary of the company that is

  • (a) a financial institution;

  • (b) a bank holding company or an insurance holding company;

  • (c) a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the company; or

  • (d) a subsidiary of a bank holding company or an insurance holding company.

Societies

Marginal note:Prescribed subsidiaries of a society

7 For the purpose of section 562 of the Act, a prescribed subsidiary of a society is a subsidiary of the society that is not

• (a) a financial institution; or

• (b) a subsidiary of a financial institution, other than where the subsidiary is a subsidiary of a financial institution only because it is a subsidiary of the society.

Marginal note:Prescribed percentage

8 For the purpose of section 562 of the Act, the prescribed percentage is

• (a) if the society has twenty-five million dollars or less of capital, 5%; and

• (b) if the society has more than twenty-five million dollars of capital, 100%.

Definition of total assets of a society

9 For the purpose of section 562 of the Act, total assets, in respect of a society, at a particular time, means the amount determined by the formula

Insurance Holding Companies

Marginal note:Prescribed subsidiaries of an insurance holding company

10 For the purpose of sections 979 and 980 of the Act, all subsidiaries of an insurance holding company are prescribed subsidiaries of the insurance holding company.

Definition of total assets of an insurance holding company

11 For the purpose of section 979 of the Act, total assets, in respect of an insurance holding company, at a particular time, means the total of the assets that would be reported on the balance sheet of the insurance holding company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 887(4) of the Act.

Repeals

Marginal note:Repeals

12 [Repeals]

Coming into Force

Marginal note:Coming into force

Footnote ^*13 These Regulations come into force on the day on which sections 494, 503 to 505, 561 to 564, 979 and 980 of the Insurance Companies Act, as enacted by sections 426, 437, 439, and 465 of the Financial Consumer Agency of Canada Act, chapter 9 of the Statutes of Canada, 2001, come into force.

• Return to footnote ^*[Note: Regulations in force October 24, 2001, see SI/2001-102.]