Investment Limits (Insurance Companies) Regulations
Marginal note:Amount determined — real property
5 (1) For the purpose of section 506 of the Act, the amount determined in respect of a company referred to in that section is
(a) if the company is a life company, the total of
(i) 70% of the amount determined under subsection (4),
(ii) 15% of the liabilities of the company in respect of life insurance policies that are not participating policies,
(iii) 25% of the liabilities of the company in respect of life insurance policies that are participating policies, and
(iv) 5% of the liabilities of the company in respect of
(A) all life annuities, whether or not for a guaranteed term, in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts,
(B) all annuities in respect of which the company has guaranteed a rate of interest for a term of more than 10 years after the date on which the contract is entered into,
(C) all group long-term disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts to retirement age, and
(D) all other disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts
(I) while the disability of the annuitant continues, to age 65, or
(II) for life; and
(b) if the company is a property and casualty company or a marine company, 10% of its total assets.
Marginal note:Amount determined — equity
(2) For the purpose of section 507 of the Act, the amount determined in respect of a company referred to in that section is
(a) if the company is a life company, the total of
(i) 70% of the amount determined under subsection (4),
(ii) 15% of the liabilities of the company in respect of life insurance policies that are not participating policies,
(iii) 25% of the liabilities of the company in respect of life insurance policies that are participating policies, and
(iv) 5% of the liabilities of the company in respect of
(A) all life annuities, whether or not for a guaranteed term, in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts,
(B) all annuities in respect of which the company has guaranteed a rate of interest for a term of more than 10 years after the date on which the contract is entered into,
(C) all group long-term disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts to retirement age, and
(D) all other disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts
(I) while the disability of the annuitant continues, to age 65, or
(II) for life; and
(b) if the company is a property and casualty company or a marine company, 25% of its total assets.
Marginal note:Amount determined — aggregate limit
(3) For the purpose of section 508 of the Act, the amount determined in respect of a company referred to in that section is
(a) if the company is a life company, the total of
(i) 100% of the amount determined under subsection (4),
(ii) 20% of the liabilities of the company in respect of life insurance policies that are not participating policies,
(iii) 40% of the liabilities of the company in respect of life insurance policies that are participating policies, and
(iv) 5% of the liabilities of the company in respect of
(A) all life annuities, whether or not for a guaranteed term, in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts,
(B) all annuities in respect of which the company has guaranteed a rate of interest for a term of more than 10 years after the date on which the contract is entered into,
(C) all group long-term disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts to retirement age, and
(D) all other disability annuities in respect of which the company has contracted with the annuitant to make regular periodic payments of defined amounts
(I) while the disability of the annuitant continues, to age 65, or
(II) for life; and
(b) if the company is a property and casualty company or a marine company, 35% of its total assets.
Marginal note:Amount determined for subsections (1) to (3)
(4) For the purposes of subparagraphs (1)(a)(i), (2)(a)(i) and (3)(a)(i), the amount determined under this subsection in respect of a company is the amount determined under the formula
A - B
where
- A
- is the regulatory capital of the company; and
- B
- is the total of
(a) all amounts each of which is included in the regulatory capital of the company and is
(i) the excess of the total assets of any financial institution, bank holding company or insurance holding company controlled by the company, or of any entity controlled by a financial institution, bank holding company or insurance holding company controlled by the company, over the total liabilities (including deferred taxes and subordinated indebtedness) of the financial institution, bank holding company, insurance holding company or entity,
(ii) an amount equal to the total deferred realized capital gains less the total deferred realized capital losses from real estate and share transactions of a financial institution referred to in subparagraph (i) that is a life company, or
(iii) the amount of subordinated indebtedness issued by a financial institution, bank holding company, insurance holding company or entity referred to in subparagraph (i);
(b) all amounts each of which is the amount of a minority interest in a financial institution, bank holding company or insurance holding company controlled by the company, or in an entity controlled by a financial institution, bank holding company or insurance holding company controlled by the company, that is included in the regulatory capital of the company;
(c) all amounts each of which is the amount of an investment, other than subordinated indebtedness referred to in subparagraph (a)(iii), of the company or a designated entity controlled by the company in a financial institution, bank holding company or insurance holding company controlled by the company, or in an entity controlled by a financial institution, bank holding company or insurance holding company controlled by the company, if the investment is part of
(i) the regulatory capital of a company,
(ii) the regulatory capital of a bank, within the meaning of the Regulatory Capital (Banks) Regulations,
(iii) the regulatory capital, within the meaning of the Regulatory Capital (Trust and Loan Companies) Regulations, of a body corporate to which the Trust and Loan Companies Act applies,
(iv) the amount that would be treated as the capital of any other financial institution, bank holding company or insurance holding company by a regulatory body that regulates it,
(v) the regulatory capital of a bank holding company, within the meaning of the Regulatory Capital (Bank Holding Companies) Regulations, or
(vi) the regulatory capital of an insurance holding company, within the meaning of the Regulatory Capital (Insurance Holding Companies) Regulations;
(d) all amounts each of which is the amount of a loan, other than subordinated indebtedness referred to in subparagraph (a)(iii), made by the company or by a designated entity controlled by the company to an insurance company or securities dealer controlled by the company, or to an entity controlled by an insurance company or securities dealer controlled by the company, if the loan is part of
(i) the regulatory capital, within the meaning of the Regulatory Capital (Insurance Companies) Regulations, of a company, or
(ii) the amount that would be treated as the capital of any other insurance company, or of a securities dealer, by a regulatory body that regulates the insurance company or securities dealer.
- SOR/2009-296, s. 30
- Date modified: