Canada Production Insurance Regulations
Marginal note:Risk-splitting benefit
5 A production insurance agreement entered into with a province shall provide that a risk-splitting benefit may be subject to the level of premium support from Canada that is associated with comprehensive production coverage, as set out in the agreement, if one of the following conditions is met:
(a) the province can prove that the risk-splitting benefits arise from third-party intervention;
(b) the province demonstrates, by a statistical analysis, that operating a risk-splitting benefit results in indemnity payments that are less than would otherwise be paid under the insurance plan; or
(c) the total costs of the risk-splitting benefit are less than the total costs for the same perils and coverage level under an insurance plan that does not provide risk-splitting benefits.
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