Assets (Foreign Companies) Regulations

4 Subject to sections 6 to 8, every foreign life company shall, in relation to its insurance risks in Canada that fall within a class of insurance other than 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 that class, determined on the same basis as the reserve included in the annual return of the foreign life company,

• (b) the total amount of the other liabilities of the foreign life company in respect of that class, and

• (c) 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.