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

Act current to 2013-04-29 and last amended on 2012-12-19. Previous Versions

Marginal note:Policies re security interests

  • 470. (1) The directors of a company shall establish and the company shall adhere to policies regarding the creation of security interests in property of the company to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests.

  • Marginal note:Order to amend policies

    (2) The Superintendent may, by order, direct a company to amend its policies as specified in the order.

  • Marginal note:Compliance

    (3) A company shall comply with an order made under subsection (2) within the time specified in the order.

  • 1991, c. 47, s. 470;
  • 2001, c. 9, s. 418.
Previous Version
Marginal note:Regulations and guidelines

470.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a company of security interests in its property to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests.

  • 2001, c. 9, s. 418.
Marginal note:Exception

470.2 Sections 470 and 470.1 do not apply in respect of a security interest created by a company to secure an obligation of the company to the Bank of Canada.

  • 2001, c. 9, s. 418.
Marginal note:Restriction on receivers

471. A company shall not grant to a person the right to appoint a receiver or a receiver and manager of the property or business of the company.

Marginal note:Restriction on partnerships

  • 472. (1) Except with the approval of the Superintendent, a company may not be a general partner in a limited partnership or a partner in a general partnership.

  • Meaning of “general partnership”

    (2) For the purposes of subsection (1), “general partnership” means any partnership other than a limited partnership.

  • 1991, c. 47, s. 472;
  • 2001, c. 9, s. 419.

Restrictions Specific to Life Companies

Marginal note:General restriction

  • 473. (1) A life company shall not, and shall not permit its prescribed subsidiaries to, enter into any debt obligation, within the meaning assigned to that expression by the regulations, or issue any share, other than a common share, if as a result the aggregate of the total debt obligations of the company, determined in the prescribed manner, and the stated capital of the company would exceed the prescribed percentage of the total assets of the company.

  • Marginal note:Exception

    (2) A life company need not include in the aggregate amount calculated for the purposes of subsection (1) the value of any debt obligation or the stated capital of any shares if the value of the debt obligation or the stated capital of the shares is included as part of the regulatory capital of the company.