An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
Full Document:
Assented to 2007-03-29
268. Subsection 584(1) of the Act is replaced by the following:
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:2005, c. 54, s. 300
269. The portion of section 585 of the Act before paragraph (a) is replaced by the following:
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
270. Subsection 586(1) of the Act is replaced by the following:
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:1997, c. 15, s. 303; 1999, c. 1, s. 9; 2001, c. 9, s. 442; 2005, c. 54, s. 301
271. Sections 587 and 587.1 of the Act are replaced by the following:
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:1997, c. 15, s. 304
272. Sections 588 and 589 of the Act are replaced by the following:
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.
273. Subsection 590(1) of the Act is replaced by the following:
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.
274. (1) Subsection 591(1) of the Act is replaced by the following:
Marginal note:Compensation association
591. (1) Every foreign company that is insuring risks that fall within a class of insurance shall become and remain a member of any compensation association designated by order of the Minister for that class of insurance.
Marginal note:1997, c. 15, s. 305
(2) Paragraphs 591(2)(c) and (d) of the Act are replaced by the following:
(c) in respect of the insuring in Canada of risks against the loss of, or damage to, property caused by fire, by lightning, by an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire protection equipment or from another fire protection system by a foreign company that is a member of the Fire Mutuals Guarantee Fund; or
(d) to a foreign company that is a foreign fraternal benefit society or an exchange.
275. Paragraph 592(a) of the Act is replaced by the following:
(a) insure risks under policies, or
Marginal note:1996, c. 6, par. 167(1)(h); 1997, c. 15, s. 306
276. Sections 594 and 595 of the Act are replaced by the following:
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.
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