Insurance Business (Banks and Bank Holding Companies) Regulations (SOR/92-330)

Regulations are current to 2019-08-15 and last amended on 2012-03-01. Previous Versions

Interpretation (continued)

 For the purposes of these Regulations, a web page is not a bank web page by reason only that the web page provides access to a bank web page or promotes the business of a bank in Canada.

  • SOR/2011-183, s. 2

Permitted Activities

 A bank may carry on any aspect of the business of insurance, other than the underwriting of insurance, outside Canada.

  • SOR/2011-183, s. 3
  •  (1) A bank may administer an authorized type of insurance and personal accident insurance.

  • (2) A bank may administer a group insurance policy for

    • (a) its employees or the employees of an entity that the bank holds control of, or a substantial investment in, under section 468 of the Act;

    • (b) the employees of

      • (i) another bank or a bank holding company, that controls the bank, or

      • (ii) an entity that the other bank or the bank holding company, referred to in subparagraph (i), holds control of, or a substantial investment in, under section 468 or 930 of the Act;

    • (c) the employees of an entity that an affiliate of the bank holds control of, or a substantial investment in, in accordance with section 522.07 or 522.08 or subsection 522.32(1) or (3) of the Act;

    • (d) the employees in Canada of an authorized foreign bank that is an affiliate of the bank; and

    • (e) if the bank is controlled by a foreign bank, the employees in Canada of an affiliate of the foreign bank that is an entity referred to in section 522.17 or 522.18 of the Act and that carries on a business described in one of those sections.

  • SOR/2002-269, s. 4
  •  (1) A bank may provide advice regarding an authorized type of insurance or a service in respect of an authorized type of insurance.

  • (2) A bank may provide advice in respect of an insurance policy that is not of an authorized type of insurance, or services in respect thereof, if

    • (a) the advice is general in nature;

    • (b) the advice is not in respect of

      • (i) a specific risk, proposal in respect of life insurance, insurance policy or service, or

      • (ii) a particular insurance company, agent or broker; and

    • (c) the bank does not thereby refer any person to a particular insurance company, agent or broker.

Promotion

 A bank shall not, in relation to its business in Canada, promote an insurance company, agent or broker unless

  • (a) the company, agent or broker deals only in authorized types of insurance; or

  • (b) the promotion takes place outside a branch of the bank and is directed to

    • (i) all the holders of credit or charge cards issued by the bank who regularly receive statements of account or notices of those statements,

    • (ii) all the bank’s customers who are natural persons and who regularly receive statements of account or notices of those statements, or

    • (iii) the general public.

  • SOR/2011-183, s. 4
  •  (1) A bank shall not, in relation to its business in Canada, promote an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, unless

    • (a) the policy is of an authorized type of insurance or the service is in respect of such a policy;

    • (b) the policy is to be provided by a corporation without share capital, other than a mutual insurance company or a fraternal benefit society, that carries on business without pecuniary gain to its members and the policy provides insurance to a natural person in respect of the risks covered by travel insurance;

    • (c) the policy is a personal accident insurance policy and the promotion takes place outside a branch of the bank;

    • (d) the service is in respect of a policy referred to in paragraph (b) or of a policy referred to in paragraph (c) that is promoted as described in that paragraph; or

    • (e) the promotion takes place outside a branch of the bank and is directed to

      • (i) all the holders of credit or charge cards issued by the bank who regularly receive statements of account or notices of those statements,

      • (ii) all the bank’s customers who are natural persons and who regularly receive statements of account or notices of those statements, or

      • (iii) the general public.

  • (2) Notwithstanding subsection (1) and section 6, a bank may exclude from a promotion referred to in paragraph (1)(e) or 6(b) persons

    • (a) in respect of whom the promotion would contravene an Act of Parliament or of the legislature of a province;

    • (b) who have notified the bank in writing that they do not wish to receive promotional material from the bank; or

    • (c) who are holders of a credit or charge card that was issued by the bank and in respect of which the account is not in good standing.

  • SOR/95-171, s. 3(E)
  • SOR/2011-183, s. 5

Web Promotion

  •  (1) The promotion referred to in paragraph 6(b) may take place on a bank web page if it relates to an insurance company, agent or broker that deals only in authorized types of insurance and the promotion referred to in paragraph 7(1)(c) or (e) may take place on a bank web page if it relates to only an authorized type of insurance.

  • (2) However, a bank shall not, on a bank web page, provide access to a web page — directly or through another web page — through which there is promotion of

    • (a) an insurance company, agent or broker that does not deal only in authorized types of insurance; or

    • (b) an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, that is not of only an authorized type of insurance.

  • SOR/2011-183, s. 6

Prohibited Activities

  •  (1) No bank shall

    • (a) provide, directly or indirectly, an insurance company, agent or broker with any information respecting

      • (i) a customer of the bank in Canada,

      • (ii) an employee of a customer of the bank in Canada,

      • (iii) where a customer of the bank is an entity with members in Canada, any such member, or

      • (iv) where a customer of the bank is a partnership with partners in Canada, any such partner;

    • (b) permit any of its subsidiaries to provide, directly or indirectly, an insurance company, agent or broker with any information that it receives from the bank respecting

      • (i) a customer of the bank in Canada,

      • (ii) an employee of a customer of the bank in Canada,

      • (iii) where a customer of the bank is an entity with members in Canada, any such member, or

      • (iv) where a customer of the bank is a partnership with partners in Canada, any such partner;

    • (b.1) provide an affiliate of the bank that is not a subsidiary of the bank with information unless the bank ensures that the affiliate does not directly or indirectly provide the information to an insurance company, agent or broker if the information is in respect of

      • (i) a customer of the bank in Canada,

      • (ii) an employee of a customer of the bank in Canada,

      • (iii) where a customer of the bank is an entity with members in Canada, any such member,

      • (iv) where a customer of the bank is a partnership with partners in Canada, any such partner; or

    • (c) permit a subsidiary of the bank that is a trust or loan corporation incorporated by or under an Act of the legislature of a province to provide, directly or indirectly, an insurance company, agent or broker with any information respecting

      • (i) a customer of the subsidiary in Canada,

      • (ii) an employee of a customer of the subsidiary in Canada,

      • (iii) where a customer of the subsidiary is an entity with members in Canada, any such member, or

      • (iv) where a customer of the subsidiary is a partnership with partners in Canada, any such partner.

  • (2) Subsection (1) does not apply in respect of a bank or a subsidiary of a bank that is a trust or loan corporation incorporated by or under an Act of the legislature of a province where

    • (a) the bank or the subsidiary has established procedures to ensure that the information referred to in that subsection will not be used by an insurance company, agent or broker to promote in Canada the insurance company, agent or broker or to promote in Canada an insurance policy, or a service in respect thereof; and

    • (b) the insurance company, agent or broker, as the case may be, has given an undertaking to the bank or to the subsidiary, in a form acceptable to the Superintendent, that that information will not be used to promote in Canada the insurance company, agent or broker or to promote in Canada an insurance policy, or a service in respect thereof.

  • SOR/2002-269, s. 5
 
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