Insurance Companies Act

Marginal note:Declaration of policy dividend or bonus

• 464 (1) Subject to this section, the directors of a company that issues participating policies may declare, and the company may pay or otherwise satisfy, a dividend, bonus or other benefit on those policies in accordance with its dividend or bonus policy established pursuant to paragraph 165(2)(e).

• Marginal note:Report of actuary

  (2) The directors shall, before declaring a dividend, bonus or other benefit on participating policies, consider a written report, which the actuary of the company shall make, on whether, in the actuary’s opinion, the dividend, bonus or other benefit is in accordance with the dividend or bonus policy of the company.

• Marginal note:When dividend not to be declared

  (3) The directors of a company shall not declare a dividend, bonus or other benefit to participating policyholders if there are reasonable grounds for believing that the company is, or the payment or other satisfaction would cause the company to be, in contravention of subsection 515(1), any regulation made under subsection 515(2) or any order made under subsection 515(3).