Insurance Companies Act (S.C. 1991, c. 47)

Marginal note:Where segregated funds required

451. A life company that issues policies described in section 450 or accepts or retains amounts so described shall, in respect of those policies or amounts,

• (a) maintain separate accounts; and

• (b) establish and maintain one or more funds consisting of assets that are segregated from the other assets of the company and that are specified as the assets on the market value of which the liabilities of the company in respect of those policies or amounts depend.

Marginal note:Establishment and maintenance of segregated funds

452. For the purpose of establishing or maintaining a segregated fund required to be established and maintained by section 451, a company may, subject to the regulations and, in the case of a transfer from a participating account maintained pursuant to section 456, to section 463, transfer an amount to the separate account maintained in respect of the segregated fund.

Marginal note:Transfers from segregated funds

453. A company may return the current value of an amount transferred under section 452 to the account from which the amount was transferred.

Marginal note:Claims against segregated funds

454. A claim against a segregated fund maintained as required by section 451 under a policy or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund.

Marginal note:Restriction of claims

455. The liability of a company under a policy or for an amount in respect of which a segregated fund is maintained pursuant to section 451

• (a) does not, except to the extent that the assets of the fund are insufficient to satisfy a claim for any minimum amount that the company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets of the company, other than the assets of that fund,

but

• (b) to the extent that the assets of the fund are insufficient to satisfy such a claim, gives rise to a claim against the assets of the company, other than the assets of that fund, that has the priority referred to in subsection 161(2) of the Winding-up and Restructuring Act.