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

Marginal note:Requirement to relinquish control

685. Where no action has been taken by the Superintendent under section 684.1 and, after thirty days following the taking of control by the Superintendent under subsection 679(1) of a company, society or provincial company or of the assets of a company, society or provincial company or of the assets in Canada of a foreign company together with its other assets held in Canada under the control of its chief agent including all amounts received or receivable in respect of its insurance business in Canada, the Superintendent receives from the board of directors of the company, society or provincial company or, in case of a foreign company, its chief agent, a notice in writing requesting the Superintendent to relinquish control, the Superintendent must, not later than twelve days after receipt of the notice,

• (a) comply with the request; or

• (b) request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the company, society or provincial company or the insurance business in Canada of the foreign company.

Marginal note:Superintendent to ascertain amounts

• 686. (1) The Superintendent shall, before December 31 in each year,

  • (a) ascertain the total amount of expenses incurred during the immediately preceding fiscal year in

    • (i) exercising control of a company, society or provincial company,

    • (ii) exercising control of the assets of a foreign company pursuant to subparagraph 679(1)(b)(i) or (ii),

    • (iii) carrying out as liquidator the winding-up of a company, society or provincial company or of the insurance business in Canada of a foreign company,

    including amounts paid as interest charges on money borrowed by or on behalf of the company, society or provincial company to meet its requirements for liquid funds or as the cost of terminating leases or employment contracts or other similar expenses; and

  • (b) ascertain the portion of the expenses described in paragraph (a) that were incurred by the company, society, foreign company or provincial company in respect of its policies of accident and sickness insurance, its policies of life insurance and annuity and its other policies by multiplying those expenses by

    A/D, B/D and C/D, respectively,

    where

    A, B and C 

    represent the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, in respect of

    • (i) its policies of accident and sickness insurance,

    • (ii) its policies of life insurance and annuities, and

    • (iii) its other policies,

    respectively, during the period referred to in the description of D, and

    D 

    represents the total of the gross premium income of the company, society, foreign company or provincial company, as determined by the Superintendent, during the period of five calendar years preceding the first to occur of the calendar year in which the Superintendent took control of the company, society or provincial company, or in the case of a foreign company, the assets, and that in which a winding-up order was issued in respect of the company, society, foreign company or provincial company.

• Marginal note:Amounts conclusive

  (2) The amounts ascertained by the Superintendent pursuant to subsection (1) are final and conclusive for the purposes of this section and sections 687 and 688.