Insurance Companies Act

Marginal note:Restriction on charges to borrowers

• 542.061 (1) Subject to any regulations made under subsection (2), a society that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the society of the insurance or guarantee.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations

  • (a) respecting the determination of the actual cost to a society for the purposes of subsection (1);

  • (b) respecting the circumstances in which a society is exempt from the application of subsection (1);

  • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a society in Canada on the security of residential property,

    • (i) the arrangements into which the society, its representatives and its employees may or may not enter, and

    • (ii) the payments or benefits that the society, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

  • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

• Marginal note:Regulations — disclosure

  (3) The Governor in Council may make regulations respecting the disclosure by a society of information relating to insurance or a guarantee against default on a loan made by the society in Canada on the security of residential property, including regulations respecting

  • (a) the information that must be disclosed, including information relating to

    • (i) the person who benefits from the insurance or guarantee,

    • (ii) the arrangements between the society, its representatives or its employees and the insurer or the insurer’s affiliates, and

    • (iii) the payments and benefits that the society, its representatives and its employees accept from an insurer or the insurer’s affiliates;

  • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

  • (c) the circumstances under which a society is not required to disclose information.