Insurance Companies Act (S.C. 1991, c. 47)

Marginal note:Limit on assets

• 412. (1) Unless an exemption order with respect to the company is granted under section 414, if a company fails to comply with section 411 in any month, the Minister may, by order, require the company not to have, until it complies with that section, average total assets in any three month period ending on the last day of a subsequent month exceeding the company’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order.

• Marginal note:Average total assets

  (2) For the purposes of subsection (1), the average total assets of a company in a three month period shall be computed by adding the total assets of the company as calculated for the month end of each of the three months in the period and by dividing the sum by three.

Marginal note:Increase of capital

• 413. (1) Where the Superintendent has, by order, directed a company to increase its capital and shares of the company are issued and acquired in accordance with such terms and conditions as may be specified in the order, section 411 shall not apply in respect of the company until such time as the Superintendent may, by order, specify.

• (2) [Repealed, 1997, c. 15, s. 245]

Marginal note:Exemption by Minister

• 414. (1) On application by a company and subject to any terms and conditions that the Minister considers appropriate, the Minister may by order exempt the company from the requirements of section 411 if the Minister considers it appropriate to do so.

• Marginal note:Compliance with section 411

  (2) The company shall comply with section 411 as of the day on which the exemption order expires.

• Marginal note:Limit on assets

  (3) If a company fails to comply with section 411 on the day referred to in subsection (2), it shall not, until it complies with that section, have average total assets in any three month period ending on the last day of a subsequent month exceeding its average total assets in the three month period ending on the last day of the month immediately preceding the day referred to in subsection (2) or on any later day that the Minister may specify by order.

• Marginal note:Application of s. 412(2)

  (4) Subsection 412(2) applies for the purposes of subsection (3).

Marginal note:Continuation of exemption

• 414.1 (1) Despite subsection 414(2), if an exemption order that was granted in respect of a company under subsection 414(3) as it read before the day on which this section comes into force provides that it expires if the holding body corporate ceases to comply with section 411, the company is not required to comply with that section until six months after the day on which the holding body corporate ceased to comply with that section if the failure to comply is as a result of

  • (a) a distribution to the public of voting shares of the holding body corporate;

  • (b) a redemption or purchase of voting shares of the holding body corporate;

  • (c) the exercise of any option to acquire voting shares of the holding body corporate; or

  • (d) the conversion of any convertible securities into voting shares of the holding body corporate.

• Marginal note:Shares acquiring voting rights

  (2) Despite subsection 414(2), if as a result of an event that has occurred and is continuing shares of a holding body corporate referred to in subsection (1) acquire voting rights in such number as to cause the holding body corporate to no longer be in compliance with section 411, the company is not required to comply with that section until six months after the day on which the holding body corporate ceased to comply with that section or any later day that the Minister may by order specify.