An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
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Assented to 2007-03-29
PART 31991, c. 47AMENDMENTS TO THE INSURANCE COMPANIES ACT
Marginal note:2001, c. 9, s. 429
247. (1) The description of B in subsection 528.3(1) of the Act is replaced by the following:
- B
- is the total value of all assets that the company directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or transfer, other than assets acquired by or transferred to the company under transactions permitted by section 522; and
Marginal note:2001, c. 9, s. 429
(2) The portion of subsection 528.3(3) of the Act before paragraph (b) is replaced by the following:
Marginal note:Exception
(3) The approval of the Superintendent under this section is not required if
(a) the company acquires or transfers assets under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01);
Marginal note:1997, c. 15, s. 285
248. Subsection 542.03(4) of the Act is replaced by the following:
Marginal note:Transfers from segregated funds
(4) A society may return the current value of an amount transferred under subsection (3) to the account from which the amount was transferred.
Marginal note:1997, c. 15, s. 285
249. Subsection 542.04(1) of the Act is replaced by the following:
Marginal note:Regulations
542.04 (1) The Governor in Council may make regulations limiting the extent to which a society may cause itself to be reinsured against risks undertaken under its policies.
Marginal note:1997, c. 15, s. 285
250. Section 542.05 of the Act is replaced by the following:
Marginal note:Restriction on issuance of annuities and endowment insurance
542.05 A society may issue annuities or policies of endowment insurance only if it is authorized to insure risks within the class of life insurance.
Marginal note:1997, c. 15, s. 285
251. Subsection 542.06(1) of the Act is replaced by the following:
Marginal note:Residential mortgages restriction
542.06 (1) A society shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving the property, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
252. Section 552 of the Act is amended by adding the following after subsection (4):
Marginal note:Application of other provision
(5) Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a society may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met.
Marginal note:Timing of deemed acquisition
(6) If a society decides to exercise its right under subsection (5), the society is deemed to be acquiring the control or the substantial investment under the other provision.
Marginal note:2001, c. 9, s. 437
253. (1) Paragraph 554(1)(c) of the French version of the Act is replaced by the following:
c) une entité qui est constituée ou formée et réglementée autrement que sous le régime d’une loi fédérale ou provinciale et qui exerce principalement, à l’étranger, des activités commerciales qui, au Canada, seraient des opérations d’assurance.
Marginal note:2001, c. 9, s. 437
(2) Paragraph 554(2)(e) of the Act is replaced by the following:
(e) engaging in the activities referred to in the definition “closed-end fund”, “mutual fund distribution entity” or “mutual fund entity” in subsection 490(1); and
(3) Section 554 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception
(3.1) Despite paragraph (3)(a), a society may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee of a trust if the entity has been authorized under the laws of a province to act as a trustee of a trust and the entity is
(a) a closed-end fund;
(b) a mutual fund entity; or
(c) an entity whose business is limited to engaging in one or more of the following:
(i) the activities of a mutual fund distribution entity,
(ii) any activity that a company is permitted to engage in under subsection 441(1.1), and
(iii) the provision of investment counselling services and portfolio management services.
Marginal note:2001, c. 9, s. 437
254. Subsection 557(4) of the Act is replaced by the following:
Marginal note:Temporary investment
(4) If a society, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 554(5) if the society had acquired the control, or acquired or increased the substantial investment, under section 554, the society must, within 90 days after acquiring control or after acquiring or increasing the substantial investment,
(a) apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or
(b) do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity.
255. (1) Section 569 of the Act is amended by adding the following after subsection (1):
Marginal note:Approval of series of transactions
(1.1) The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not.
Marginal note:2001, c. 9, s. 440
(2) The portion of subsection 569(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply in respect of
Marginal note:2001, c. 9, s. 440
(3) The portion of subsection 569(3) of the Act before paragraph (b) is replaced by the following:
Marginal note:Exception
(3) The approval of the Superintendent under this section is not required if
(a) the society sells or transfers assets under a transaction that is approved by the Minister or the Superintendent under subsection 254(2) or (2.01);
Marginal note:2001, c. 9, s. 440
(4) Paragraph 569(4)(b) of the Act is replaced by the following:
(b) in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the society prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer.
Marginal note:2001, c. 9, s. 440
(5) Subsection 569(6) of the Act is replaced by the following:
Marginal note:Total value of all assets
(6) For the purposes of subsection (1), the total value of all assets that the society or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the society prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the society if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer of the asset.
256. (1) The definitions “foreign life company” and “foreign property and casualty company” in section 571 of the Act are replaced by the following:
“foreign life company”
« société d’assurance-vie étrangère »
“foreign life company” means a foreign company that is authorized to insure risks that fall within the class of life insurance;
“foreign property and casualty company”
« société d’assurances multirisques étrangère »
“foreign property and casualty company” means a foreign company other than a foreign life company or a foreign marine company;
(2) Section 571 of the Act is amended by adding the following in alphabetical order:
“foreign entity”
« entité étrangère »
“foreign entity” means an entity incorporated or formed by or under the laws of a country other than Canada, and includes an association and an exchange;
“foreign marine company”
« société d’assurance maritime étrangère »
“foreign marine company” means a foreign company that is authorized to solely insure risks within the class of marine insurance;
257. Section 572 of the Act is replaced by the following:
Marginal note:Application — insurance business in Canada
572. This Part applies only in respect of the insurance business in Canada of a foreign entity.
Marginal note:Exception
572.1 Despite section 572, this Part does not apply in respect of the insurance against injury to persons or loss of or damage to property, or liability for such injury, loss or damage, caused by nuclear energy, including ionizing radiation and contamination by radioactive substances, to the extent that, in the opinion of the Superintendent, that insurance is not available within Canada.
258. The heading before section 573 of the Act is replaced by the following:
Insurance of Risks
Marginal note:1997, c. 15, s. 300(F)
259. (1) Subsections 573(1) to (4) of the Act are replaced by the following:
Marginal note:Restriction on insuring of risks unless authorized
573. (1) A foreign entity shall not insure in Canada a risk unless it is authorized by order made under subsection 574(1).
Marginal note:Restriction to specified classes of insurance
(2) A foreign company shall not insure in Canada a risk unless the risk falls within a class of insurance that is specified in the order made under subsection 574(1) in respect of the foreign company.
Marginal note:Restriction on issuance of annuities or endowment insurance
(3) Unless authorized to insure in Canada risks falling within the class of life insurance, a foreign company shall not issue annuities or policies of endowment insurance in Canada.
Marginal note:Transitional
(4) A certificate of registry issued to a foreign entity under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act, or any other authorization, that had not expired or been withdrawn before June 1, 1992 is deemed to be an order made under subsection 574(1) and the foreign entity remains subject to any and all other conditions and limitations contained in the certificate or other authorization.
(2) Subsection 573(5) of the French version of the Act is replaced by the following:
Marginal note:Maintien des branches d’assurance
(5) La branche d’assurance énoncée dans le certificat d’enregistrement ou l’autre autorisation de fonctionnement visés au paragraphe (4) est réputée être énoncée dans l’agrément autorisant la société étrangère à garantir au Canada des risques.
Marginal note:1996, c. 6, s. 84; 1997, c. 15, s. 301; 1999, c. 28, s. 125
260. Sections 574 and 575 of the Act are replaced by the following:
Marginal note:Application for order
574. (1) On application by a foreign entity, the Superintendent may, with the approval of the Minister but subject to the other provisions of this Part, make an order approving the insuring in Canada of risks by the foreign entity.
Marginal note:Reciprocal treatment
(2) If the application is made by a foreign entity that is not controlled by a WTO Member resident, the Minister shall not approve the making of an order under subsection (1) unless the Minister is satisfied that treatment as favourable for companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign entity principally carries on business, either directly or through a subsidiary.
Marginal note:Prohibited names
575. (1) An order made under subsection 574(1) may not provide for the use of a name that
(a) is prohibited by an Act of Parliament;
(b) is, in the opinion of the Superintendent, deceptively misdescriptive;
(c) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trade-mark, trade name or corporate name of a body corporate, except where
(i) the trade-mark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and
(ii) consent to the use of the trade-mark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require;
(d) is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or
(e) is reserved under section 45 for a company or society or proposed company or society.
Marginal note:Affiliated entity
(2) Despite subsection (1), an order made under subsection 574(1) may provide for the use of a name that is the same or substantially the same as that of an entity with which the foreign entity is affiliated, within the meaning of subsection 6(2), if that other entity consents to the use of the name.
Marginal note:Representations to Superintendent
(3) If the Superintendent does not make an order for one of the reasons specified in subsection (1), he or she must, by a notice in writing to that effect, give the foreign entity and any other interested party an opportunity to make representations.
Marginal note:1996, c. 6, s. 84
261. Subsection 576(2) of the Act is repealed.
Marginal note:1996, c. 6, s. 84
262. Subsection 577(1) of the Act is replaced by the following:
Marginal note:Direction to change of name
577. (1) If through inadvertence or otherwise a foreign company is permitted by an order made under subsection 574(1) to insure risks under a name that is prohibited by section 575, the Superintendent may direct the foreign company to change the name without delay.
263. Section 578 of the Act is replaced by the following:
Marginal note:French, English or foreign form of name
578. (1) The name under which a foreign company is authorized to insure risks, as set out in the order made under subsection 574(1), may be in an English form, a French form, an English form and a French form, a combined English and French form or a form combining words in a language other than English or French with one of the forms specified in this subsection.
Marginal note:Other name
(2) Subject to subsections (3) and (4), a foreign company may carry on its insurance business in Canada under a name other than the name set out in the order made under subsection 574(1) in respect of the foreign company.
Marginal note:Direction to change name
(3) If a foreign company carries on its insurance business in Canada under a name other than a name set out in the order made under subsection 574(1) in respect of the foreign company, the Superintendent may direct the foreign company not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 575(1)(a) to (e).
Marginal note:Publication of name
(4) A foreign company shall set out, or cause to be set out, its name and, if different, the name under which it is authorized to insure risks, in legible characters in all contracts, premium notices, applications for policies, policies, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the foreign company.
Marginal note:Publication of statement
(5) A foreign company shall set out or cause to be set out in legible characters in all premium notices, applications for policies and policies that are issued or made by or on behalf of the foreign company a statement that the document was issued or made in the course of its insurance business in Canada.
Marginal note:Continuation of registered names
(6) The name of a foreign company, as set out in a certificate of registry referred to in subsection 573(4), or in any other authorization, is deemed to be set out in an order of the Superintendent made under subsection 574(1) in respect of the foreign company.
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