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

Act current to 2013-05-20 and last amended on 2012-12-19. Previous Versions

Marginal note:Transitional

988. Nothing in this Division requires

  • (a) the termination of a loan made before February 7, 2001;

  • (b) the termination of a loan made after that date as a result of a commitment made before that date;

  • (c) the disposal of an investment made before that date; or

  • (d) the disposal of an investment made after that date as a result of a commitment made before that date.

But if the loan or investment would be precluded or limited by this Division, the amount of the loan or investment may not be increased after that date.

  • 2001, c. 9, s. 465.
Marginal note:Saving

989. A loan or investment referred to in section 988 is deemed not to be prohibited by the provisions of this Division.

  • 2001, c. 9, s. 465.
Marginal note:Meaning of “non-insurance entity”

  • 990. (1) Subject to subsection (2), for the purpose of section 991, “non-insurance entity” means a Canadian entity, other than a company, that is controlled by an insurance holding company or in which an insurance holding company has a substantial investment.

  • Marginal note:Exception

    (2) A Canadian entity is not a non-insurance entity by reason only that a subsidiary of an insurance holding company that is a company that controls, or has a substantial investment, in the Canadian entity.

  • 2001, c. 9, s. 465.
Marginal note:Disclosure of status

  • 991. (1) A non-insurance entity that carries on as part of its business the provision of financial services shall not borrow money in Canada from the public without disclosing that the non-insurance entity is not regulated as a financial institution in Canada.

  • Marginal note:Manner of disclosure

    (2) The disclosure shall be

    • (a) in a prospectus, information circular or other offering document related to the borrowing or in a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or

    • (b) in any other manner that may be prescribed.

  • Marginal note:Exception for certain borrowings

    (3) Subsection (1) does not apply

    • (a) to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or

    • (b) except as may be provided in any regulations, to a borrowing

      • (i) from a person in an amount of $150,000 or more, or

      • (ii) through the issue of instruments in denominations of $150,000 or more.

  • Marginal note:Exception

    (4) Subsection (1) does not apply if the non-insurance entity is

    • (a) an insurance holding company or a bank holding company;

    • (b) a bank;

    • (c) an entity that is controlled by a bank holding company or in which a bank holding company has a substantial investment;

    • (d) a trust, loan or insurance corporation incorporated under an Act of Parliament or of the legislature of a province;

    • (e) a financial institution that is described in paragraph (g) of the definition “financial institution” in section 2;

    • (f) an entity referred to in paragraph 971(1)(f) or (h); or

    • (g) a prescribed entity.

  • 2001, c. 9, s. 465;
  • 2007, c. 6, s. 329(F).
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