Insurance Business (Cooperative Credit Associations) Regulations (SOR/2003-300)

Interpretation

• 1 (1) The following definitions apply in these Regulations.

  Act

  Act means the Cooperative Credit Associations Act. (Loi)

  association web page

  association web page means a web page that an association uses in relation to its business in Canada, including any information provided by the association that is accessible on a telecommunications device. It does not include a web page that is only accessible by employees or agents of the association. (page Web d’association)

  authorized type of insurance

  authorized type of insurance means

  • (a) credit or charge card-related insurance,

  • (b) creditors’ disability insurance,

  • (c) creditors’ life insurance,

  • (d) creditors’ loss of employment insurance,

  • (e) creditors’ vehicle inventory insurance,

  • (f) export credit insurance,

  • (g) mortgage insurance, or

  • (h) travel insurance. (assurance autorisée)

  credit or charge card-related insurance

  credit or charge card-related insurance means a policy of an insurance company that provides insurance to a holder of a credit or charge card issued by a body corporate that is part of the cooperative credit system as a feature of the card, without request and without an individual assessment of risk,

  • (a) against loss of, or damage to, goods purchased with the card,

  • (b) under which the insurance company undertakes to extend a warranty provided by the manufacturer of goods purchased with the card, or

  • (c) against any loss arising from a contractual liability assumed by the card holder when renting a vehicle, where the rental is paid for with the card. (assurance carte de crédit ou de paiement)

  creditors’ disability insurance

  creditors’ disability insurance means a group insurance policy that will pay to a body corporate that is part of the cooperative credit system, all or part of the amount of a debt of a debtor to the body corporate in the event of bodily injury to, or an illness or disability of,

  • (a) where the debtor is a natural person, the debtor or the spouse or common law partner of the debtor;

  • (b) a natural person who is a guarantor of all or part of the debt;

  • (c) where the debtor is a body corporate, a director or an officer of the body corporate; or

  • (d) where the debtor is an entity, any natural person who is essential to the ability of the debtor to meet the debtor’s financial obligations to the body corporate that is part of the cooperative credit system. (assurance-invalidité de crédit)

  creditors’ life insurance

  creditors’ life insurance means a group insurance policy that will pay to a body corporate that is part of the cooperative credit system, all or part of the amount of a debt of a debtor to the body corporate, or where the debt is in respect of a small business or a farm, fishery or ranch, all or part of the amount of the credit limit of a line of credit, in the event of the death of

  • (a) where the debtor is a natural person, the debtor or the spouse or common-law partner of the debtor;

  • (b) a natural person who is a guarantor of all or part of the debt;

  • (c) where the debtor is a body corporate, a director or an officer of the body corporate; or

  • (d) where the debtor is an entity, any natural person who is essential to the ability of the debtor to meet the debtor’s financial obligations to the body corporate that is part of the cooperative credit system. (assurance-vie de crédit)

  creditors’ loss of employment insurance

  creditors’ loss of employment insurance means a policy of an insurance company that will pay to a body corporate that is part of the cooperative credit system, without any individual assessment of risk, all or part of the amount of a debt of a debtor to the body corporate in the event that

  • (a) where the debtor is a natural person, the debtor becomes involuntarily unemployed, or

  • (b) a natural person who is a guarantor of all or part of the debt becomes involuntarily unemployed. (assurance crédit en cas de perte d’emploi)

  creditors’ vehicle inventory insurance

  creditors’ vehicle inventory insurance means a policy of an insurance company that provides insurance against direct and accidental loss of, or damage to, vehicles that are held in stock, for display and sale, by a debtor to a body corporate that is part of the cooperative credit system, some or all of which have been financed by the body corporate. (assurance crédit pour stocks de véhicules)

  export credit insurance

  export credit insurance means a policy of an insurance company that provides insurance to an exporter of goods or services against loss incurred by the exporter as a result of nonpayment for exported goods or services. (assurance crédit des exportateurs)

  group insurance policy

  group insurance policy means a contract of insurance between an insurance company and any body corporate that is part of the cooperative credit system that provides insurance severally in respect of a group of identifiable persons who individually hold certificates of insurance. (police d’assurance collective)

  insurance company

  insurance company means an entity that is approved, registered or otherwise authorized to insure risks under an Act of Parliament or of the legislature of a province. (société d’assurances)

  line of credit

  line of credit means a commitment on the part of a body corporate that is part of the cooperative credit system, to lend to a debtor of the body corporate, without a predetermined repayment schedule, one or more amounts, where the aggregate amount outstanding does not exceed a predetermined credit limit, which limit does not exceed the reasonable credit needs of the debtor. (marge de crédit)

  mortgage insurance

  mortgage insurance means an insurance policy that provides insurance to a body corporate that is part of the cooperative credit system, against loss caused by a default on the part of a debtor who is a natural person under a loan from the body corporate that is secured by a mortgage on real property or on an interest in real property. (assurance hypothèque)

  personal accident insurance

  personal accident insurance means a group insurance policy that provides insurance to a natural person, whereby the insurance company undertakes to pay

  • (a) one or more amounts in the event of bodily injury to, or the death of, the person that is caused by an accident, or

  • (b) a certain amount for each day that the person is hospitalized, in the event of bodily injury to the person that is caused by an accident or in the event of an illness or disability of the person. (assurance accidents corporels)

  small business

  small business means a business that is or, if it were incorporated, would be a small business corporation within the meaning of subsection 248(1) of the Income Tax Act. (petite entreprise)

  travel insurance

  travel insurance means

  • (a) a policy of an insurance company that provides insurance to a natural person in respect of a trip by the person away from the place where the person ordinarily resides, without any individual assessment of risk, against

    • (i) loss that results from the cancellation or interruption of the trip,

    • (ii) loss of, or damage to, personal property that occurs during the trip, or

    • (iii) loss that is caused by the delayed arrival of personal baggage during the trip, or

  • (b) a group insurance policy that provides insurance to a natural person in respect of a trip by the person away from the province in which the person ordinarily resides

    • (i) against expenses incurred during the trip that result from an illness or disability of the person that occurs during the trip,

    • (ii) against expenses incurred during the trip that result from bodily injury to, or the death of, the person that is caused by an accident during the trip,

    • (iii) whereby the insurance company undertakes to pay one or more sums of money in the event of an illness or disability of the person that occurs during the trip, or of bodily injury to, or the death of, the person that is caused by an accident during the trip,

    • (iv) against expenses incurred by the person for dental care necessitated by an accident that occurs during the trip, or

    • (v) in the event that the person dies during the trip, against expenses incurred for the return of the person’s remains to the place where the person was ordinarily resident before death, or against travel expenses incurred by a relative of that person who must travel to identify that person’s remains. (assurance voyage)

• (2) For the purposes of these Regulations, the following bodies corporate are part of the cooperative credit system:

  • (a) an association;

  • (b) a local cooperative credit society;

  • (c) a body corporate in which an association or a local cooperative credit society has a substantial investment and which is primarily engaged in the business of providing financial services;

  • (d) a body corporate that is primarily engaged in providing financial services and in which two or more associations or local cooperative credit societies hold, in aggregate, sufficient voting rights which, if exercised, would constitute control of the body corporate within the meaning of paragraph 3(1)(a) of the Act; and

  • (e) a cooperative corporation, the membership of which is primarily composed of associations, central cooperative credit societies or local cooperative credit societies, and which is primarily engaged in the business of providing financial services.

• (3) For the purposes of these Regulations, a web page is not an association web page by reason only that the web page provides access to an association web page or promotes the business of an association in Canada.

Permitted Activities

2 A retail association may carry on any aspect of the business of insurance, other than the underwriting of insurance, outside Canada.

• 3 (1) An association may administer an authorized type of insurance and personal accident insurance.

• (2) An association may administer a group insurance policy for

  • (a) its employees;

  • (b) for the employees of any body corporate that the association has control of, or a substantial investment in, under section 390 of the Act; or

  • (c) for the employees of a member of the association.

4 An association may provide advice or a service in respect of

• (a) an authorized type of insurance;

• (b) an insurance policy that is not of an authorized type of insurance referred to in paragraph 6(1)(b); or

• (c) an insurance policy that is not of an authorized type of insurance, other than a policy referred to in paragraph 6(1)(b), if

  • (i) the advice is general in nature,

  • (ii) the advice is not in respect of

    • (A) a specific risk, proposal in respect of life insurance, insurance policy or service, or

    • (B) a particular insurance company, agent or broker, and

  • (iii) the association does not thereby refer any person to a particular insurance company, agent or broker.

Promotion

5 An association shall not, in relation to its business in Canada, promote an insurance company, agent or broker unless

• (a) the company, agent or broker deals only in authorized types of insurance; or

• (b) the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association and is directed to

  • (i) all holders of credit or charge cards issued by the association or by any body corporate that is part of the cooperative credit system,

  • (ii) all customers of the association and all members of local cooperative credit societies that are members of the association, who are natural persons and who regularly receive statements of account or notices of those statements, or

  • (iii) the general public.