Assets (Foreign Companies) Regulations

3 Subject to sections 6 and 7, every foreign life company shall, in relation to its insurance risks in Canada that fall within the classes of life insurance, accident and sickness insurance and loss of employment insurance, maintain assets in Canada the total value of which, when determined in accordance with the accounting principles referred to in subsection 331(4) of the Act, is at least equal to the aggregate of

• (a) the amount of the reserve for actuarial and other policy liabilities of the foreign life company in respect of those classes, determined on the same basis as the reserve included in the annual return of the foreign life company, minus the amount of all advances made by the foreign life company on the security or against the cash surrender value of its life policies in Canada,

• (b) the amount of the provision for claims incurred by the foreign life company in respect of those classes that are unpaid,

• (c) the total amount of the other liabilities of the foreign life company in respect of those classes, and

• (d) the margin of assets in Canada over liabilities in Canada that the foreign life company is required, pursuant to section 608 of the Act, to maintain in respect of the insuring of those risks.