Assets (Foreign Companies) Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2002-450/FullText.html

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Assets (Foreign Companies) Regulations

SOR/2002-450INSURANCE COMPANIES ACT
Registration 2002-12-05
Assets (Foreign Companies) Regulations
P.C. 2002-2079  2002-12-05Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 610Footnote a of the Insurance Companies ActFootnote b, hereby makes the annexed Assets (Foreign Companies) Regulations.

Return to footnote aS.C. 2001, c. 9, s. 447
Return to footnote bS.C. 1991, c. 47
Definition and Application

1 In these Regulations Act means the Insurance Companies Act.

2 These Regulations do not apply to associations.

Value of Assets in Canada

3 In addition to the margin of assets in Canada over liabilities in Canada required by section 608 of the Act, and subject to sections 6 and 7, every foreign life company shall, in relation to the classes of life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, maintain assets in Canada the total value of which, when determined in accordance with the accounting principles referred to in subsection 331(4) of the Act, is at least equal to the aggregate of

(a) the amount of the reserve for actuarial and other policy liabilities of the company in respect of those classes, determined on the same basis as the reserve included in the company’s annual return, minus the amount of all advances that were made by the company on the security or against the cash surrender value of its life policies included in its annual return,
(b) the amount of the provision for claims incurred by the foreign life company in respect of those classes that are unpaid, and
(c) the total amount of the other liabilities of the foreign life company in respect of those classes.
(d) [Repealed, SOR/2009-296, s. 31]

SOR/2006-348, s. 1;
SOR/2009-296, s. 31.

Previous Version

4 In addition to the margin of assets in Canada over liabilities in Canada required by section 608 of the Act, and subject to sections 6 and 7, every foreign life company shall, in relation to the classes of insurance other than life insurance, accident and sickness insurance, credit protection insurance and other approved products insurance, maintain assets in Canada the total value of which, when determined in accordance with the accounting principles referred to in subsection 331(4) of the Act, is at least equal to the aggregate of

(a) the amount of the reserve for actuarial and other policy liabilities of the foreign life company in respect of that class, determined on the same basis as the reserve included in the annual return of the foreign life company, and
(b) the total amount of the other liabilities of the foreign life company in respect of that class.
(c) [Repealed, SOR/2009-296, s. 32]

SOR/2009-296, s. 32.
Previous Version

5 In addition to the margin of assets in Canada over liabilities in Canada required by section 608 of the Act, and subject to sections 6 and 7, every foreign property and casualty company and every foreign marine company shall, in relation to a class of insurance, maintain assets in Canada the total value of which, when determined in accordance with the accounting principles referred to in subsection 331(4) of the Act, is at least equal to the aggregate of

(a) the amount of the reserve for actuarial and other policy liabilities of the company in respect of that class, determined on the same basis as the reserve included in the annual return of the company; and
(b) the total amount of the other liabilities of the company in respect of that class.
(c) [Repealed, SOR/2009-296, s. 33]

SOR/2009-296, s. 33.
Previous Version

Reduction where Amounts Receivable by Insurance Agents, Insurance Brokers and Policyholders

6 The total value of assets required under sections 3, 4 and 5 to be maintained may be reduced by any amounts that are receivable from insurance agents, insurance brokers and policyholders of the foreign company in respect of policies in force as may be determined by the Superintendent.

Reduction of Total Value where Foreign Company Reinsured

7 If a foreign company is reinsured against all or any portion of the risks insured or claims payable under policies issued in the course of its insurance business in Canada, the aggregate of the amounts referred to in sections 3 to 5 may be reduced by subtracting from that amount an amount not exceeding the aggregate of the portions of that amount that apply to the risks or claims that are reinsured if the reinsurer is

(a) a company, a society or a provincial company;
(b) a foreign company that has reinsured in Canada the risks under a reinsurance arrangement that provides that the reinsurer does not have any right of set-off against the obligations of the foreign company other than obligations related to its insurance business in Canada;
(c) a body corporate that is incorporated under the laws of a province and has been approved by the Superintendent;
(d) the Insurance Corporation of British Columbia;
(e) The Manitoba Public Insurance Corporation;
(f) Saskatchewan Government Insurance;
(g) Export Development Canada; or
(h) an entity that maintains assets in Canada of a nature and under an arrangement that the Superintendent has determined to be satisfactory.

SOR/2009-296, s. 34.
Previous Version

Letter of Credit in Lieu of Assets

8 [Repealed, SOR/2009-296, s. 35]
Previous Version

Repeal

9 [Repeal]

Coming into Force

10 These Regulations come into force on January 1, 2003.