Protection of Residential Mortgage or Hypothecary Insurance Regulations (SOR/2012-231)

Marginal note:Prohibited policies — exception

7 For the purposes of section 14 of the Act, an approved mortgage insurer may be a party to a policy under which the beneficiary is a person or entity referred to in paragraph 13(1)(c) of the Act if, at least 60 days before that occurs, the Minister has been notified that the insurer is or expects to be in a prescribed relationship with that person or entity.

Fees for Risk Exposure

Marginal note:Method of calculating

• 8 (1) The fees that an approved mortgage insurer must pay under section 9 of the Act with respect to a given calendar year are to be determined in accordance with the formula

  A × 2.25%

  where

  A

  is the total amount of direct premiums written by the approved mortgage insurer in respect of policies that it entered into during that calendar year.

• Marginal note:Fees due and recoverable

  (2) The fees are due and payable on March 1 of the following year and may be recovered as a debt due to Her Majesty.

Transitional Provisions

Marginal note:Reduced capital requirement

9 For a period of one year beginning on the day on which these Regulations come into force, the amount of unencumbered paid-up capital required under subparagraph 3(1)(b)(i) is at least $1,000,000.

Marginal note:Reinsurance by company

10 An approved mortgage insurer that caused itself, before the day on which these Regulations come into force, to be reinsured by a company within the meaning of section 2 of the Act against a risk that it had undertaken under its contracts of insurance may, despite paragraph 4(a), continue to be reinsured against that risk by that company for a period of no more than three years beginning on the day on which these Regulations come into force.

Marginal note:Existing portfolio commitment

• 10.1 (1) Subsection 4.1(1) does not apply in respect of insurance coverage resulting from a commitment to insure a portfolio of mortgage or hypothecary loans up to a specified total value that is made before that subsection comes into force.

• Marginal note:Existing portfolio commitment

  (2) Subsection 4.1(2) does not apply in respect of a commitment that is made before that subsection comes into force.

Coming into Force

Marginal note:S.C. 2011, c. 15

Footnote ^*11 These Regulations come into force on the day on which section 20 of the Supporting Vulnerable Seniors and Strengthening Canada’s Economy Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

• Return to footnote ^*[Note: Regulations in force January 1, 2013, see SI/2012-87.]