Insurance Companies Act

Marginal note:Reinsurance

• 523 (1) A company may, subject to subsection (2) and to Division III of Part VI, cause itself to be reinsured by a related party of the company against any risk undertaken by the company under its policies.

• Marginal note:Restriction re related parties

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

  • (a) a company; or

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

• Marginal note:Exception

  (3) The approval of the Superintendent under subsection (2) is not required if the reinsurance transaction was approved by the Minister or the Superintendent under subsection 254(2) or (2.01).