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

Marginal note:Claims against segregated funds

594. A claim against a segregated fund maintained as required by section 593 under a policy or for an amount in respect of which the fund is maintained has priority over any other claim against the assets of that fund, including the claims referred to in section 161 of the Winding-up and Restructuring Act, except to the extent that the payment of that other claim is secured by a security interest in or on a specific, identifiable asset of the segregated fund.

Marginal note:Restriction of claims

595. The liability of a foreign company under a policy or for an amount in respect of which a segregated fund is maintained pursuant to section 593

• (a) does not, except to the extent that the assets of the fund are insufficient to satisfy a claim for any minimum amount that the foreign company agrees to pay under the policy or in respect of the amount, give rise to a claim against any assets in Canada of the foreign company, other than the assets of that fund,

but

• (b) to the extent that the assets of the fund are insufficient to satisfy such a claim, gives rise to a claim against the assets in Canada of the foreign company, other than the assets of that fund, that has the priority referred to in subsection 161(2) of the Winding-up and Restructuring Act.

Marginal note:Regulations

• 596. (1) The Governor in Council may make regulations limiting the extent to which foreign companies may cause themselves to be reinsured against risks undertaken under their policies.

• Marginal note:Regulation may provide for discretion

  (2) A regulation made pursuant to subsection (1) may provide that the Superintendent may, by order, determine the matters or exercise the discretion that the regulation may specify.

Marginal note:Restriction re related parties

• 597. (1) Except with the approval of the Superintendent, a foreign company may cause itself to be reinsured, in respect of risks undertaken under its policies, by a related party of the foreign company only if the related party is

  • (a) a company; or

  • (b) a foreign company that, in Canada, reinsures those risks.

• Meaning of “related party”

  (2) For the purposes of this section, “related party”, in relation to a foreign company, means a “related party” within the meaning of Part XI, with such modifications as the circumstances require.