Mortgage Insurance Business (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations (SOR/2010-68)

3 (1) For the purposes of sections 418.1 and 552 of the Bank Act, section 382.2 of the Cooperative Credit Associations Act, sections 469.1 and 542.061 of the Insurance Companies Act and section 418.1 of the Trust and Loan Companies Act, the actual cost to an institution shall be determined by deducting from the cost incurred by the institution for mortgage insurance provided to the institution by an insurer all payments or benefits, including rebates or discounts, that are received directly or indirectly by the institution from the insurer, whether in the form of a fee or commission or in any other form.

(2) For the purpose of the determination referred to in subsection (1), the following payments or benefits are not to be considered part of the actual cost:

• (a) any payment or benefit that is not related to the provision of mortgage insurance to the institution by the insurer;

• (b) any payment or benefit received by the institution for an activity permitted by section 4; and

• (c) any payment received by the institution from the insurer in respect of a claim made by the institution under the mortgage insurance as a result of a default on the residential mortgage that is the subject of the insurance.