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:Restriction on guarantees

  • 474. (1) A life company shall not guarantee on behalf of any person the payment or repayment of any sum of money unless

    • (a) the sum of money is a fixed sum of money with or without interest thereon; and

    • (b) the person on whose behalf the company has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed.

  • Marginal note:Exception

    (2) Paragraph (1)(a) does not apply where the person on whose behalf the company has undertaken to guarantee a payment or repayment is a subsidiary of the company.

  • (3) [Repealed, 1997, c. 15, s. 254]

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section.

  • 1991, c. 47, s. 474;
  • 1997, c. 15, s. 254;
  • 2001, c. 9, s. 420.
Marginal note:Restriction on leasing

475. A life company shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, within the meaning of subsection 490(1), is not permitted to engage.

  • 1991, c. 47, s. 475;
  • 2001, c. 9, s. 421.

Restrictions Specific to Property and Casualty Companies and Marine Companies

Marginal note:General restriction

476. A property and casualty company, or a marine 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.

  • 1991, c. 47, s. 476;
  • 2007, c. 6, s. 228.
Previous Version
Marginal note:Restriction on guarantees

  • 477. (1) A property and casualty company, or a marine company, shall not guarantee on behalf of any person the payment or repayment of any sum of money unless the person on whose behalf the company has undertaken to guarantee the payment or repayment is a subsidiary of the company and has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed.

  • Marginal note:Saving

    (2) Subsection (1) does not prevent a property and casualty company, or a marine company, from insuring a risk falling within a class of insurance that is specified in the order of the Superintendent approving the commencement and carrying on of business by the company.

  • 1991, c. 47, s. 477;
  • 1997, c. 15, s. 255;
  • 2001, c. 9, s. 422;
  • 2007, c. 6, s. 228.
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