Marginal note:Application

• 579. (1) An application for an order under subsection 574(1) must be filed with the Superintendent, together with the information, material and evidence that the Superintendent may require, including

  • (a) documents relating to the constitution of the foreign entity;

  • (b) a power of attorney to the chief agent appointed under subsection (3), in the form that the Superintendent may require;

  • (c) a statement, in the form that the Superintendent may require, of the financial condition of the foreign entity and of the business of insurance undertaken by the foreign entity, and any additional statements or information that the Superintendent may require as to its solvency and its ability to meet all of its obligations;

  • (d) evidence satisfactory to the Superintendent that the foreign entity is authorized under the laws of the country where it is incorporated or formed to insure risks within each class of insurance in Canada that that foreign entity has applied to insure;

  • (e) in the case of a foreign fraternal benefit society,

    • (i) a report of an actuary appointed by the foreign fraternal benefit society, in the form that the Superintendent may require, on the results of an actuarial valuation made by the actuary, as of the preceding December 31 or as of any later date specified by the Superintendent, of each of the benefit funds maintained by the foreign fraternal benefit society, having regard to the prospective liabilities of and contributions to each fund, and

    • (ii) the opinion of the actuary that the assets of the foreign fraternal benefit society applicable to each fund, taken at the value accepted by the Superintendent, together with the premiums, dues and other contributions to be received after the date of the valuation from the members according to the scale in force at the date of the valuation, are sufficient to provide for the payment at maturity of all of the obligations of the fund without deduction or abatement; and

  • (f) a copy of the resolution respecting the investment and lending policies, standards and procedures that the foreign entity is to establish and adhere to in accordance with subsection 615(1).

• Marginal note:Contents of power of attorney

  (2) A power of attorney referred to in paragraph (1)(b) must expressly authorize the chief agent to receive all notices under the laws of Canada from the Minister or the Superintendent.

Marginal note:Publishing notice of intention

580. Before filing an application referred to in subsection 579(1), a foreign entity must, at least once a week for four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its chief agency is to be situated if it is granted an order under subsection 574(1).

Marginal note:Conditions for order

• 581. (1) The Superintendent shall not make an order under subsection 574(1) in respect of a foreign entity until it has been shown to the satisfaction of the Superintendent that all relevant requirements of this Act have been complied with and that the foreign entity has

  • (a) vested in trust assets having a prescribed value;

  • (b) appointed an actuary under section 623 and an auditor under section 633; and

  • (c) established its chief agency.

• Marginal note:Conditions of order

  (2) The order may contain any conditions or limitations that are consistent with this Act and that the Superintendent considers appropriate.

Marginal note:Permissible securities

• 582. (1) The assets of a foreign entity to be vested in trust are to consist of unencumbered securities of or guaranteed by Canada or a province.

• Marginal note:Other permissible securities

  (2) The assets of a foreign entity to be vested in trust may also consist of other securities at the accepted value and on the conditions established by the Superintendent.

Marginal note:Contents of order

583. An order made under subsection 574(1) in respect of a foreign company must set out

• (a) the name of the foreign company and, if different, the name under which it is authorized to insure risks;

• (b) the day on which the order becomes effective;

• (c) the classes of insurance risks that the foreign company is authorized to insure; and

• (d) the conditions or limitations that are consistent with this Act that are considered appropriate by the Superintendent.

Marginal note:Public notice

• 584. (1) On the making of an order under subsection 574(1) in respect of a foreign company, the foreign company must publish a notice of the making of the order in a newspaper in general circulation at or near the place where its chief agency is located.

Marginal note:Publication of list

585. Unless the regulations provide otherwise, the Superintendent shall cause to be published quarterly in the Canada Gazette a list of

Marginal note:Variations

• 586. (1) In respect of an order made under subsection 574(1) in respect of a foreign company, the Superintendent may at any time, by further order,

  • (a) specify additional classes of insurance risks that the foreign company is authorized to insure;

  • (b) make the order subject to conditions or limitations that are consistent with this Act and that are considered appropriate by the Superintendent; or

  • (c) amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject.

• Marginal note:Representations

  (2) Before making any such further order, the Superintendent must give the foreign company an opportunity to make representations regarding that further order.

Marginal note:Change of chief agent

• 587. (1) A foreign company that changes its chief agent shall, without delay after doing so, file with the Superintendent a further power of attorney appointing the new chief agent.

• Marginal note:Change of address

  (2) A foreign company that changes the address of its chief agency shall, within 15 days after doing so, send a notice of the change of address to the Superintendent.

Marginal note:Restricted transactions

• 587.1 (1) Except in accordance with this section or an order made under subsection 678.6(1), a foreign company shall not cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken under its policies.

• Marginal note:Approval of the Superintendent

  (2) A foreign company may, with the approval of the Superintendent, cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken under its policies, by one or more of the following entities:

  • (a) a company or society;

  • (b) another foreign company that, in Canada, reinsures those risks; or

  • (c) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate and the appropriate official or public body responsible for the supervision of the body corporate.

• Marginal note:Prescribed transactions

  (3) The approval of the Superintendent is not required for a prescribed transaction or a transaction in a prescribed class of transactions.

• Marginal note:Procedure

  (4) The foreign company must, at least 30 days before it applies for the Superintendent’s approval, publish a notice in the Canada Gazette and in a newspaper in general circulation at or near the place where its chief agency is situated stating the day on or after which it will apply.

• Marginal note:Information

  (5) If a foreign company publishes a notice referred to in subsection (4), the Superintendent may direct the foreign company to provide its policyholders with any information that the Superintendent may require.

• Marginal note:Report of independent actuary

  (6) An application for approval must, if the Superintendent so requires, be accompanied by the report of an independent actuary on the proposed reinsurance agreement.

• Marginal note:Inspection

  (7) If a foreign company publishes a notice referred to in subsection (4), it must make the agreement for the transaction that the Superintendent is asked to approve available at its chief agency for the inspection of its policyholders for at least 30 days after the publication of the notice and must provide a copy of the agreement to any policyholder who requests one by writing to the chief agency.

• Marginal note:Superintendent may shorten periods

  (8) If the Superintendent is of the opinion that it is in the best interests of a group of policyholders affected by the transaction that the Superintendent is asked to approve, the Superintendent may shorten the periods of 30 days referred to in subsections (4) and (7).

• Marginal note:Regulations

  (9) The Governor in Council may make regulations respecting the circumstances in which foreign companies are deemed to be causing themselves to be reinsured, on an assumption basis, against risks undertaken under their policies.

Marginal note:Approval by Superintendent

587.2 A transaction referred to in subsection 587.1(2) has no effect until it has been approved by the Superintendent.

Marginal note:Notice to Superintendent

• 587.3 (1) A foreign company proposing to transfer all or substantially all of its policies must give notice of the proposal to the Superintendent.

• Marginal note:Information

  (2) After receiving the notice, the Superintendent may direct the foreign company to provide its policyholders with any information that the Superintendent may require.

Marginal note:Restriction to reinsurance

• 588. (1) A foreign company may reinsure, but shall not otherwise insure, a risk falling within a class of insurance specified in the order made under subsection 574(1) in respect of the foreign company if the order limits the foreign company to the reinsurance of those risks.

• Marginal note:Continuation of certificate conditions

  (2) A condition that limits a foreign company to the reinsurance of risks falling within a class of insurance and that is contained in a certificate of registry issued under the Foreign Insurance Companies Act or under Part VIII of the Canadian and British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn before June 1, 1992 is deemed to be a condition in an order made under subsection 574(1) in respect of the foreign company.

Marginal note:No new foreign composite companies

589. The Superintendent may not make or vary an order made under subsection 574(1) in respect of a foreign company if the foreign company would as a result be permitted to insure both risks falling within the class of life insurance and risks falling within any other class of insurance other than accident and sickness insurance, credit protection insurance and other approved products insurance.

Marginal note:Saving for existing foreign composite companies

• 590. (1) Despite section 589, subsections 573(4) and 588(2) permit a foreign company to which was issued under the Foreign Insurance Companies Act or Part VIII of the Canadian and British Insurance Companies Act a certificate of registry or other authorization specifying both risks falling within the class of life insurance and risks falling within some other class of insurance, other than accident and sickness insurance, accident insurance, personal accident insurance and sickness insurance, to insure those risks.

• (a) insure risks under policies, or

Marginal note:Claims against segregated funds

594. A claim against a segregated fund maintained as required by section 593 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

595. The liability of a foreign company under a policy or for an amount in respect of which a segregated fund is maintained pursuant to section 593

• (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 foreign company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets in Canada of the foreign 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 in Canada of the foreign 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.

Marginal note:Regulations

• 596. (1) The Governor in Council may make regulations limiting the extent to which foreign companies may cause themselves to be reinsured against risks undertaken under their policies.

Marginal note:Restriction re related parties

• 597. (1) Except with the approval of the Superintendent, a foreign company may cause itself to be reinsured, in respect of risks undertaken under its policies, by a related party of the foreign company only if the related party is

  • (a) a company; or

  • (b) a foreign company that, in Canada, reinsures those risks.

Marginal note:Disclosing borrowing costs — advances

602. If regulations have been made respecting the manner in which the cost of borrowing is to be disclosed in respect of an advance on the security or against the cash surrender value of a policy, a foreign company shall not make such an advance unless the cost of borrowing, as calculated and expressed in accordance with the regulations, has, in the prescribed manner, been disclosed by the foreign company or otherwise as prescribed to the policyholder at or before the time when the advance is made.