Insurance Companies Act

Marginal note:Adequacy of capital and liquidity — foreign company

• 608 (1) A foreign company shall, in relation to its insurance risks in Canada, maintain an adequate margin of assets in Canada over liabilities in Canada and adequate and appropriate forms of liquidity and shall comply with any regulations in relation to an adequate margin of assets in Canada over liabilities in Canada and adequate and appropriate forms of liquidity.

• Marginal note:Liabilities

  (2) For the purposes of subsection (1), the liabilities in Canada of a foreign company include the reserve included in the annual return required under subsection 665(2).

• Marginal note:Guidelines

  (3) The Superintendent may make guidelines in respect of any matter referred to in paragraph 610(1)(a).

• Marginal note:Directives

  (4) Notwithstanding that 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 in Canada over its liabilities in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires.

• Marginal note:Compliance

  (5) A foreign company shall comply with an order made under subsection (4) within the time that the Superintendent specifies in the order.