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

  • 542.07 (1) The directors of a society shall establish and the society shall adhere to policies regarding the creation of security interests in property of the society to secure obligations of the society and the acquisition by the society 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 society to amend its policies as specified in the order.

  • Marginal note:Compliance

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

  • 1997, c. 15, s. 285;
  • 2001, c. 9, s. 433.
Marginal note:Regulations and guidelines

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

  • 2001, c. 9, s. 433.
Marginal note:Restriction on receivers

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

  • 1997, c. 15, s. 285.
Marginal note:Restriction on partnerships

542.09 Except with the approval of the Superintendent, a society may not be a general partner in a limited partnership or a partner in any partnership other than a limited partnership.

  • 1997, c. 15, s. 285;
  • 2001, c. 9, s. 434.
Marginal note:General restriction

  • 542.1 (1) A society 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 permit its prescribed subsidiaries to issue any share, other than a common share, if as a result the aggregate of the total debt obligations of the society, determined in the prescribed manner, and the stated capital of the society would exceed the prescribed percentage of the total assets of the society.

  • Marginal note:Exception

    (2) A society need not include in the aggregate amount calculated for the purpose 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 society.

  • 1997, c. 15, s. 285.
Marginal note:Restriction on guarantees

  • 542.11 (1) A society 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 on it; and

    • (b) the person on whose behalf the society has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the society 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 society has undertaken to guarantee a payment or repayment is a subsidiary of the society.

  • Marginal note:Regulations

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

  • 1997, c. 15, s. 285;
  • 2001, c. 9, s. 435.