Bank Act

Marginal note:Restriction on insurance business

• 549 (1) An authorized foreign bank shall not undertake in Canada the business of insurance except to the extent permitted by this Act or the regulations.

• Marginal note:Restriction on acting as agent

  (2) An authorized foreign bank shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the authorized foreign bank to any person engaged in the placing of insurance.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between authorized foreign banks and

  • (a) entities that undertake the business of insurance; or

  • (b) insurance agents or insurance brokers.

• Marginal note:Saving

  (4) Nothing in this section precludes an authorized foreign bank from

  • (a) requiring insurance to be placed by a borrower for the security of the authorized foreign bank; or

  • (b) obtaining group insurance for its employees.

• Definition of business of insurance

  (5) In this section, business of insurance includes

  • (a) the issuance of any annuity if the liability in respect of the annuity is contingent on the death of a person; and

  • (b) the issuance of any debt obligation, any of whose terms and conditions are established on the basis of mortality considerations, under which the issuer is obliged to make periodic payments.