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. 444(1)
280. (1) Subsection 604(1) of the Act is replaced by the following:
Marginal note:Procedures for dealing with complaints
604. (1) A foreign company shall
(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the foreign company;
(b) designate one of its officers or employees in Canada, or an agent in Canada, to be responsible for implementing those procedures; and
(c) designate one or more of its officers or employees in Canada, or agents in Canada, to receive and deal with those complaints.
(2) Section 604 of the Act is amended by adding the following after subsection (2):
Marginal note:How procedures to be made available
(3) A foreign company shall make its procedures established under paragraph (1)(a) available
(a) on its websites through which products or services are offered in Canada; and
(b) in written format to be sent to any person who requests them.
Marginal note:Information on contacting Agency
(4) A foreign company shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).
Marginal note:2001, c. 9, s. 444(1)
281. Section 604.1 of the Act is replaced by the following:
Marginal note:Obligation to be member of complaints body
604.1 In any province, if there is no law of the province that makes a foreign company subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a foreign company, the foreign company shall be a member of an organization in Canada that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established under paragraph 604(1)(a).
Marginal note:2001, c. 9, s. 444(1)
282. Subsection 605(1) of the Act is replaced by the following:
Marginal note:Information on contacting Agency
605. (1) A foreign company shall, in the prescribed manner, provide a person in Canada requesting or receiving a product or service in Canada from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 601(3), a payment, credit or charge card referred to in subsection 601(2), the disclosure of or manner of calculating the cost of borrowing in respect of a loan repayable in Canada or an advance on the security or against the cash surrender value of a policy, or about any other obligation of the foreign company under a consumer provision.
Marginal note:2001, c. 9, s. 445
283. Subparagraph 607.1(a)(iv) of the Act is replaced by the following:
(iv) any other matter that may affect their dealings, or their employees’ or representatives’ dealings, with customers or the public;
284. The Act is amended by adding the following after section 607.1:
Marginal note:Provisions that do not apply
607.2 (1) Sections 598 to 607.1 do not apply in respect of a foreign company if
(a) the order made under subsection 574(1) in respect of the foreign company restricts it to the reinsurance of risks within a class of insurance specified in the order;
(b) the foreign company has provided the Commissioner with a declaration stating that it is not dealing with a prescribed group of consumers; and
(c) after providing the declaration, the foreign company continues to not deal with that prescribed group.
Marginal note:Notice if action taken that causes provisions to apply
(2) The foreign company must give notice to the Commissioner if it subsequently deals with the prescribed group referred to in the declaration.
285. The heading before section 608 of the Act is replaced by the following:
Adequacy of Assets
Marginal note:2001, c. 9, s. 446
286. (1) Subsection 608(1) of the Act is replaced by the following:
Marginal note:Adequacy of assets and appropriate forms of liquidity
608. (1) A foreign company shall maintain in Canada an adequate margin of assets over liabilities in respect of its insurance business in Canada as shown in the records it is required to maintain under section 647, and adequate and appropriate forms of liquidity, and shall comply with any regulations in relation to an adequate margin of assets over liabilities and adequate and appropriate forms of liquidity.
Marginal note:2001, c. 9, s. 446
(2) Subsection 608(4) of the Act is replaced by the following:
Marginal note:Directives
(4) Even though a foreign company is complying with regulations made under paragraph 610(1)(a) or guidelines made under subsection (3), the Superintendent may, by order, direct the foreign company to increase the margin of its assets over its liabilities that it is required to maintain in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires.
287. (1) Subsection 609(1) of the Act is replaced by the following:
Marginal note:Adequacy of assets
609. (1) A foreign company shall, in relation to each class of insurance risks that it is permitted to insure, maintain in Canada, in accordance with the regulations, assets the total value of which shall be determined in accordance with the regulations.
Marginal note:1996, c. 6, s. 88
(2) Subsection 609(2) of the Act is replaced by the following:
Marginal note:Directives
(2) Even though a foreign company is complying with regulations made under paragraph 610(1)(b) or guidelines made under subsection (1.1), the Superintendent may, by order, direct the foreign company to increase the assets that it is required to maintain in Canada.
288. The heading before section 610 of the Act is repealed.
289. The heading before section 611 of the Act is repealed.
290. (1) Paragraph 612(1)(d) of the Act is replaced by the following:
(d) a loan made in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that 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.
Marginal note:1997, c. 15, s. 315
(2) Subsection 612(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Despite paragraphs (1)(a) and (c), a foreign company may vest in trust a substantial investment in an entity that is primarily engaged in
(a) holding, managing or otherwise dealing with real property; or
(b) holding shares or ownership interests in entities that are primarily engaged in any of the activities referred to in paragraph (a).
291. Section 614 of the Act is replaced by the following:
Marginal note:Non-application
614. (1) Sections 612 and 615 to 620 do not apply in respect of assets of a foreign company held in relation to a segregated fund maintained pursuant to section 593.
Marginal note:Exclusion of liabilities of segregated funds
(2) A reference in sections 615 to 619 and in regulations made under section 620 to the assets in Canada or the liabilities in Canada of a foreign company does not include liabilities of the foreign company for the policies and amounts in respect of which a segregated fund is maintained pursuant to section 593.
292. Sections 616 to 619 of the Act are replaced by the following:
Marginal note:Lending limit — foreign life companies
616. (1) The total accepted value of commercial loans vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Lending limit — foreign composite companies
(2) The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Consumer and Commercial Lending by Foreign Property and Casualty Companies and Foreign Marine Companies
Marginal note:Lending limit — foreign property and casualty companies and foreign marine companies
617. The total accepted value of the commercial loans and loans to natural persons vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
Real Property
Marginal note:Limit on total property interest — foreign life companies
618. (1) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on total property interest — foreign composite companies
(2) The total accepted value of interests in real property vested in trust by a foreign life company for the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on total property interest — foreign property and casualty companies and foreign marine companies
(3) The total accepted value of interests in real property vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
Equities
Marginal note:Limit on equity acquisitions — foreign life companies
619. (1) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on equity acquisitions — foreign composite companies
(2) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign life company for the classes of insurance, other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, shall not at any time exceed the prescribed percentage of the value of its assets in Canada for those classes.
Marginal note:Limit on equity acquisitions — foreign property and casualty companies and foreign marine companies
(3) The total accepted value of the participating shares, within the meaning of Part IX, of any body corporate and any ownership interests, howsoever designated, in any unincorporated entities vested in trust by a foreign property and casualty company, or a foreign marine company, shall not at any time exceed the prescribed percentage of the value of its assets in Canada.
293. The portion of section 622 of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
622. A foreign company may vest in trust an asset if the asset was acquired through a transaction described in any of sections 524 to 533 and
294. The heading before section 633 of the Act is replaced by the following:
Interpretation
Marginal note:Definitions
632.1 In sections 634 to 643, the expressions “firm of accountants” and “member” have the meanings assigned to those expressions by section 336.
Appointment
295. Subsection 634(3) of the English version of the Act is replaced by the following:
Marginal note:Notice of designation
(3) Within 15 days after the appointment of a firm of accountants as auditor of a foreign company, the foreign company and the firm of accountants shall jointly designate a member of the firm who meets the qualifications described in subsection (1) to conduct the audit of the foreign company on behalf of the firm and the foreign company shall without delay notify the Superintendent in writing of the designation.
296. Subsection 643(2) of the Act is replaced by the following:
Marginal note:Special examination
(2) In respect of the insurance business in Canada of a foreign company, the Superintendent may, in writing, require that the auditor of the foreign company make a particular examination relating to the adequacy of the procedures adopted by the foreign company for the safety of its creditors and policyholders, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on the examination.
297. (1) Paragraph 647(1)(c) of the Act is replaced by the following:
(c) with respect to its insurance business in Canada, records showing, for each customer of, or claimant under a policy issued by, the foreign company, the amount owing to the foreign company and the nature of the liabilities of the foreign company to the customer or claimant.
(2) Subsection 647(2) of the English version of the Act is replaced by the following:
Marginal note:Standards for record keeping
(2) The records described in paragraphs (1)(b) and (c) shall be kept in a manner that enables the chief agent of the foreign company to provide the Superintendent with the information required by section 664 and with the annual return required by subsection 665(2).
Marginal note:1996, c. 6, s. 90 and par. 167(1)(h)
298. The heading before section 650 and sections 650 to 655 of the Act are replaced by the following:
Release of Assets
Marginal note:Application for release of assets in Canada
650. A foreign company that proposes to cease to insure in Canada risks may apply to the Superintendent for the release of its assets in Canada.
Marginal note:Conditions of release
651. Except as otherwise provided in this Act, the Superintendent may, by order, authorize the release of the assets in Canada of a foreign company if the foreign company
(a) has, in respect of its policies,
(i) obtained their surrender,
(ii) transferred them,
(iii) caused itself to be reinsured, on an assumption basis, against the risks undertaken under them, or
(iv) otherwise discharged its liabilities under them, or provided for their discharge in a manner satisfactory to the Superintendent;
(b) has discharged all of its obligations, other than liabilities under its policies, or provided for them in a manner satisfactory to the Superintendent; and
(c) has provided the Superintendent with proof of the publication, for four consecutive weeks, in the Canada Gazette and in at least one newspaper of general circulation at or near the place where the chief agency of the foreign company is situated, of a notice that it will apply to the Superintendent for the release of its assets in Canada on a day specified in the notice, which must be at least six weeks after the date of the notice, and calling on its creditors and policyholders opposing that release to file their opposition with the Superintendent on or before the day.
Marginal note:Release of assets to liquidator
652. Despite sections 650 and 651, the assets in Canada of a foreign company that is in liquidation may, on the order of any court having jurisdiction under the Winding-up and Restructuring Act, be released to the liquidator.
Marginal note:Revocation of order
653. The Superintendent may revoke the order made under subsection 574(1) in respect of a foreign company if in the opinion of the Superintendent the foreign company is not insuring in Canada risks, or if the foreign company does not
(a) provide information to the Superintendent as required by section 664;
(b) provide the annual return to the Superintendent as required by section 665;
(c) permit the examination authorized by section 648 or 674; or
(d) provide any information in its possession or control that is requested for the purpose of any such examination.
Marginal note:Deemed revocation
654. An order made under subsection 574(1) in respect of a foreign company is deemed to be revoked when an order is made under section 651 or 652 authorizing the release of its assets in Canada.
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