Insurance Business (Cooperative Credit Associations) Regulations (SOR/2003-300)

• 6 (1) An association shall not, in relation to its business in Canada, promote an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, unless

  • (a) the policy is of an authorized type of insurance or the service is in respect of such a policy;

  • (b) the policy is not of an authorized type of insurance and

    • (i) is restricted to insuring the risks of the association, a local cooperative credit society that is a member of the association or an affiliate of the association, and

    • (ii) does not in any way insure the risks of a customer arising from a transaction with the customer.

  • (c) the policy is to be provided by a corporation without share capital, other than a mutual insurance company or fraternal benefit society, that carries on business without pecuniary gain to its members and the policy provides insurance to a natural person in respect of the risks covered by travel insurance;

  • (d) the policy is a personal accident insurance policy and the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association;

  • (e) the service is in respect of a policy referred to in paragraph (c) or a policy referred to in paragraph (d) that is promoted in the manner described in that paragraph; or

  • (f) the promotion takes place outside an office of a local cooperative credit society or a branch of a retail association and is directed to a group of persons referred to in any of subparagraphs 5(b)(i) to (iii).

• (2) Despite subsection (1) and section 5, an association may exclude from a promotion referred to in paragraph (1)(f) or 5(b) any person

  • (a) in respect of whom the promotion would contravene an Act of Parliament or of the legislature of a province;

  • (b) who has given written notice to the association or to a body corporate that is part of the cooperative credit system and that is involved in the promotion, that the person does not wish to receive promotional material from the association or the body corporate;

  • (c) who is the holder of a credit or charge card referred to in subparagraph 5(b)(i) and in respect of which the account is not in good standing; or

  • (d) who is a member of a local cooperative credit society that has notified the association in writing that it does not wish its members to receive any promotional material from the association.

Web Promotion

• 6.1 (1) The promotion referred to in paragraph 5(b) may take place on an association web page if it relates to an insurance company, agent or broker that deals only in authorized types of insurance and the promotion referred to in paragraph 6(1)(d) or (f) may take place on an association web page if it relates to only an authorized type of insurance.

• (2) However, an association shall not, on an association web page, provide access to a web page — directly or through another web page — through which there is promotion of

  • (a) an insurance company, agent or broker that does not deal only in authorized types of insurance; or

  • (b) an insurance policy of an insurance company, agent or broker, or a service in respect of such a policy, that is not of only an authorized type of insurance.

Prohibited Activities

• 7 (1) No association shall

  • (a) directly or indirectly provide to an insurance company, agent or broker any information respecting

    • (i) a customer in Canada of a body corporate that is a member of the association,

    • (ii) a customer of the association in Canada, if it is a retail association,

    • (iii) an employee of a customer referred to in subparagraphs (i) or (ii),

    • (iv) if a customer referred to in subparagraphs (i) or (ii) is an entity with members in Canada, any such member, or

    • (v) if a customer referred to in subparagraph (i) or (ii) is a partnership with partners in Canada, any such partner;

  • (b) permit any of its subsidiaries to directly or indirectly provide to an insurance company, agent or broker any information that the subsidiary receives from the association respecting a person referred to in any of subparagraphs (a)(i) to (v); or

  • (c) permit a subsidiary of the association that is a trust or loan corporation incorporated by or under an Act of the legislature of a province to directly or indirectly provide to an insurance company, agent or broker any information respecting

    • (i) a customer in Canada of the subsidiary,

    • (ii) an employee of a customer referred to in subparagraph (i),

    • (iii) if a customer referred to in subparagraph (i) is an entity with members in Canada, any such member, or

    • (iv) if a customer referred to in subparagraph (i) is a partnership with partners in Canada, any such partner.

• (2) Subsection (1) does not apply in respect of an association, or a subsidiary of an association that is a trust or loan corporation incorporated by or under an Act of the legislature of a province, if

  • (a) the association or subsidiary has established procedures to ensure that the information referred to in that subsection will not be used by an insurance company, agent or broker to promote, in Canada, the company, agent or broker, an insurance policy or a service in respect of an insurance policy; and

  • (b) the insurance company, agent or broker, as the case may be, has given an undertaking to the association or subsidiary, in a form acceptable to the Superintendent, that the information will not be used to promote in Canada the insurance company, agent or broker, an insurance policy or a service in respect of an insurance policy.

8 No association shall provide a telecommunications device that is primarily for the use of customers or members in Canada of a local cooperative credit society or a retail association and that links a customer or member with an insurance company, agent or broker.

9 A retail association shall not carry on business in Canada on premises that are adjacent to the premises of an insurance company, agent or broker unless the retail association clearly indicates to its customers that its business and the premises on which its business is carried on are separate and distinct from those of the insurance company, agent or broker.

Coming into Force

10 These Regulations come into force on the day on which they are registered.