GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Insurance Companies Act — I-11.8 500
Realizations 500 (1) Despite anything in this Act, a company may acquire (a) an investment in a body corporate, (b) an interest in an unincorporated entity, or (c) an interest in real property, if the investment or interest is acquired through the realization of a security interest held by the company or any of its subsidiaries. Disposition (2) Subject to subsection 77(2), if a company acquires control of, or acquires a substantial investment in, an entity by way of the realization of a security interest held by the company or any of its subsidiaries, the company shall, within five years after the day on which control or the substantial investment is acquired, do all things necessary, or cause its subsidiary to do all things necessary, as the case may be, to ensure that the company no longer controls the entity or has a substantial investment in the entity. Transitional (3) Despite subsection (2), if a company that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the company later increases that substantial investment by way of a realization of a security interest under subsection (1), the company shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990. Extension (4) The Superintendent may, in the case of any particular company that makes an application under this subsection, extend the period of five years referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. Exception (5) If, under subsection (1), a company acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 495, the company may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4). 1991, c. 47, s. 500; 1997, c. 15, s. 268; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 501
Regulations restricting ownership 501 The Governor in Council may make regulations (a) for the purposes of subsection 495(6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the companies or other entities in respect of which that subsection does not apply, including prescribing companies or other entities on the basis of the activities they engage in; (b) for the purposes of subsection 495(7) or (8), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the companies or other entities in respect of which either of those subsections does not apply, including prescribing companies or other entities on the basis of the activities they engage in; (c) for the purposes of subsection 495(12), permitting a company to give up control of an entity; (d) restricting the ownership by a company of shares of a body corporate or of ownership interests in an unincorporated entity under sections 495 to 500 and imposing terms and conditions applicable to companies that own such shares or interests; and (e) for the purposes of subsection 495(2.1), establishing terms and conditions respecting the acquisition of control of, or the acquisition or increase of a substantial investment in, a permitted infrastructure entity by a life company. 1991, c. 47, s. 501; 1997, c. 15, s. 269; 2001, c. 9, s. 426 2018, c. 12, s. 345
Insurance Companies Act — I-11.8 502
Exclusion from portfolio limits 502 (1) Subject to subsection (3), the value of all loans, investments and interests acquired by a company and any of its prescribed subsidiaries under section 499 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the company and its prescribed subsidiaries under sections 503 to 508 (a) for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and (b) for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property. Extension (2) The Superintendent may, in the case of any particular company, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary. Exception (3) Subsection (1) does not apply to an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 509 to be an interest in real property and (a) the company or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 509 to be an interest in real property; or (b) the company or the subsidiary acquired the investment or interest under section 499 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 509 to be an interest in real property. 1991, c. 47, s. 502; 1997, c. 15, s. 270; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 503
Lending limit: companies with regulatory capital of $25 million or less 503 Subject to section 504, a life company that has twenty-five million dollars or less of regulatory capital shall not, and shall not permit its prescribed subsidiaries to, make or acquire a commercial loan or acquire control of a permitted entity that holds commercial loans if the aggregate value of all commercial loans held by the company and its prescribed subsidiaries exceeds, or the making or acquisition of the commercial loan or acquisition of control of the entity would cause the aggregate value of all commercial loans held by the company and its prescribed subsidiaries to exceed, 5 per cent of the total assets of the company. 1991, c. 47, s. 503; 1999, c. 28, s. 123; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 504
Lending limit: regulatory capital over $25 million 504 A life company that has twenty-five million dollars or less of regulatory capital that is controlled by a financial institution that has the equivalent of more than twenty-five million dollars of regulatory capital or a life company that has more than twenty-five million dollars of regulatory capital may make or acquire commercial loans or acquire control of a permitted entity that holds commercial loans if the aggregate value of all commercial loans held by the company and its prescribed subsidiaries would thereby exceed the limit set out in section 503 only with the prior approval in writing of the Superintendent and in accordance with any terms and conditions that the Superintendent may specify. 1991, c. 47, s. 504; 1999, c. 28, s. 124; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 505
Lending limit — property and casualty companies and marine companies 505 A property and casualty company, or a marine company, shall not, and shall not permit its prescribed subsidiaries to, make or acquire a commercial loan or a loan to a natural person, or acquire control of a permitted entity that holds commercial loans or loans to natural persons, if the aggregate value of all such loans held by the company and its prescribed subsidiaries exceeds, or the making or acquisition of the loan or the acquisition of control of the permitted entity would cause the aggregate value of all such loans held by the company and its prescribed subsidiaries to exceed, the prescribed percentage of the total assets of the company. 1991, c. 47, s. 505; 2001, c. 9, s. 426; 2007, c. 6, s. 238
Insurance Companies Act — I-11.8 506
Limit on total property interest 506 A company shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the company or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the company in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, an amount determined in accordance with the regulations. 1991, c. 47, s. 506; 1993, c. 34, s. 82; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 507
Limits on equity acquisitions 507 A company shall not, and shall not permit its prescribed subsidiaries to, (a) purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, or (b) acquire control of an entity that holds shares or ownership interests referred to in paragraph (a), if the aggregate value of (c) all participating shares, excluding participating shares of permitted entities in which the company has a substantial investment, and (d) all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the company has a substantial investment, beneficially owned by the company and its prescribed subsidiaries exceeds, or the purchase or acquisition would cause that aggregate value to exceed, an amount determined in accordance with the regulations. 1991, c. 47, s. 507; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 508
Aggregate limit 508 A company shall not, and shall not permit its prescribed subsidiaries to, (a) purchase or otherwise acquire (i) participating shares of a body corporate, other than those of a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, (ii) ownership interests in an unincorporated entity, other than ownership interests in a permitted entity in which the company has, or by virtue of the acquisition would have, a substantial investment, or (iii) interests in real property, or (b) make an improvement to real property in which the company or any of its prescribed subsidiaries has an interest if the aggregate value of (c) all participating shares and ownership interests referred to in subparagraphs (a)(i) and (ii) that are beneficially owned by the company and its prescribed subsidiaries, and (d) all interests of the company in real property referred to in subparagraph (a)(iii) exceeds, or the acquisition or the making of the improvement would cause that aggregate value to exceed, an amount determined in accordance with the regulations. 1991, c. 47, s. 508; 1997, c. 15, s. 271; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 509
Regulations 509 For the purposes of this Part, the Governor in Council may make regulations (a) defining the interests of a company in real property; (b) determining the method of valuing those interests; (c) exempting classes of companies from the application of sections 502 to 508; or (d) respecting the determination of an amount for the purpose of each of sections 506, 507 and 508. 1991, c. 47, s. 509; 1993, c. 34, s. 83; 1997, c. 15, s. 272; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 510
Divestment order 510 (1) The Superintendent may, by order, direct a company to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Part. Divestment order (2) If, in the opinion of the Superintendent, (a) an investment by a company or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the company to control the body corporate or the unincorporated entity, or (b) the company or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before (i) the board of directors of a body corporate, or (ii) a similar group or committee of an unincorporated entity, or whereby no proposal may be approved except with the consent of the company, the entity it controls or the nominee, the Superintendent may, by order, require the company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the company no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b). Divestment order (3) If (a) a company (i) fails to provide or obtain within a reasonable time the undertakings referred to in subsection 497(1), (2) or (4), or (ii) is in default of an undertaking referred to in subsection 497(1) or (2) and the default is not remedied within ninety days after the day of receipt by the company of a notice from the Superintendent of the default, or (b) a permitted entity referred to in subsection 497(4) is in default of an undertaking referred to in subsection 497(4) and the default is not remedied within ninety days after the day of receipt by the company of a notice from the Superintendent of the default, the Superintendent may, by order, require the company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the company no longer has a substantial investment in the entity to which the undertaking relates. Exception (4) Subsection (2) does not apply in respect of an entity in which a company has a substantial investment permitted by this Part. 1991, c. 47, s. 510; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 511
Deemed temporary investment 511 If a company controls or has a substantial investment in an entity as permitted by this Part and the company becomes aware of a change in the business or affairs of the entity that, if the change had taken place before the acquisition of control or of the substantial investment, would have caused the entity not to be a permitted entity or would have been such that approval for the acquisition would have been required under subsection 495(7) or (8), the company is deemed to have acquired, on the day the company becomes aware of the change, a temporary investment in respect of which section 498 applies. 1991, c. 47, s. 511; 1997, c. 15, s. 273; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 512
red to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 331(4), immediately before the transfer of the asset. 1991, c. 47, s. 512; 1997, c. 15, s. 274; 2001, c. 9, s. 426; 2007, c. 6, s. 239
Insurance Companies Act — I-11.8 513
Transitional 513 Nothing in this Part 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 Part, the amount of the loan or investment may not, except as provided in subsections 498(2), 499(3) and 500(3), be increased after that date. 1991, c. 47, s. 513; 2001, c. 9, s. 426
Insurance Companies Act — I-11.8 514
Deeming 514 A loan or investment referred to in section 513 is deemed not to be prohibited by the provisions of this Part.
Insurance Companies Act — I-11.8 515
Adequacy of capital and liquidity — companies and societies 515 (1) A company and society shall, in relation to its operations, maintain adequate capital and adequate and appropriate forms of liquidity and shall comply with any regulations in relation to adequate capital and adequate and appropriate forms of liquidity. Regulations and guidelines (2) The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by companies and societies of adequate capital and adequate and appropriate forms of liquidity. Directives (3) Notwithstanding that a company or society is complying with regulations or guidelines made under subsection (2), the Superintendent may, by order, direct the company or society to increase its capital or to provide additional liquidity in any forms and amounts that the Superintendent may require. Compliance (4) A company and society shall comply with an order made under subsection (3) within the time that the Superintendent specifies in the order. 1991, c. 47, s. 515; 1996, c. 6, s. 81; 2001, c. 9, s. 427
Insurance Companies Act — I-11.8 517
Notice of value 517 Where an appraisal of any asset held by a company or any of its subsidiaries has been made by the Superintendent and the value determined by the Superintendent to be the appropriate value of the asset varies materially from the value placed by the company or subsidiary on the asset, the Superintendent shall send to the company, the auditor of the company, the actuary of the company and the audit committee of the company a written notice of the appropriate value of the asset as determined by the Superintendent.
Insurance Companies Act — I-11.8 517.1
Definition of senior officer 517.1 For the purposes of this Part, a senior officer of a body corporate is a person who is (a) a director of the body corporate who is a full-time employee of the body corporate; (b) the chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary of the body corporate; (c) a natural person who performs functions for the body corporate similar to those performed by a person referred to in paragraph (b); (d) the head of the strategic planning unit of the body corporate; (e) the head of the unit of the body corporate that provides legal services or human resources services to the body corporate; or (f) any other officer reporting directly to the body corporate’s board of directors, chief executive officer or chief operating officer. 1997, c. 15, s. 276
Insurance Companies Act — I-11.8 518
n 3, determined without regard to paragraph 3(1)(d)”, respectively. Determination of control (9) For the purposes of paragraph (1)(d), controlled means “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”. 1991, c. 47, s. 518; 1997, c. 15, s. 277; 2000, c. 12, s. 158
Insurance Companies Act — I-11.8 520
Meaning of transaction 520 (1) For the purposes of this Part, entering into a transaction with a related party of a company includes (a) making a guarantee on behalf of the related party; (b) making an investment in any securities of the related party; (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; (d) taking a security interest in the securities of the related party; and (e) causing the company to be reinsured by the related party against any risk undertaken by the company under its policies. Interpretation (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit and the making of a payment or an advance under a policy, is part of the transaction, and not a separate transaction. Meaning of loan (3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee. Security of a related party (4) For the purposes of this Part, security of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time. 1991, c. 47, s. 520; 2007, c. 6, s. 242
Insurance Companies Act — I-11.8 521
Prohibited transactions 521 (1) Except as provided in this Part, a company shall not, directly or indirectly, enter into any transaction with a related party of the company. Transaction of entity (2) Without limiting the generality of subsection (1), a company is deemed to have indirectly entered into a transaction in respect of which this Part applies where the transaction is entered into by an entity that is controlled by the company. Exception (3) Subsection (2) does not apply where an entity that is controlled by a company is a financial institution incorporated or formed under the laws of a province and is subject to regulation and supervision, satisfactory to the Minister, regarding transactions with related parties of the company. Idem (4) Subsection (2) does not apply in respect of transactions entered into by an entity that is controlled by a company if the transaction is a prescribed transaction or is one of a class of prescribed transactions.
Insurance Companies Act — I-11.8 522
Nominal value transactions 522 Notwithstanding anything in this Part, a company may enter into a transaction with a related party of the company if the value of the transaction is nominal or immaterial to the company when measured by criteria that have been established by the conduct review committee of the company and approved in writing by the Superintendent.
Insurance Companies Act — I-11.8 523
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. 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. 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). 1991, c. 47, s. 523; 2007, c. 6, s. 243
Insurance Companies Act — I-11.8 524
Risks of related party 524 A company may, subject to Division III of Part VI, reinsure any risks undertaken by a related party of the company. 1991, c. 47, s. 524; 2007, c. 6, s. 244(F)
Insurance Companies Act — I-11.8 525
Secured loans 525 A company may make a loan to or a guarantee on behalf of a related party of the company or take an assignment of or otherwise acquire a loan to a related party of the company if (a) the loan or guarantee is fully secured by securities of or guaranteed by the Government of Canada or the government of a province; or (b) the loan is a loan permitted by section 469 made to a related party who is a natural person on the security of a mortgage of the principal residence of that related party.
Insurance Companies Act — I-11.8 526
Borrowing, etc., from related party 526 (1) A company may borrow money from or issue debt obligations to a related party of the company. Segregated funds (2) A company may issue policies to a related party of the company or accept or retain on the direction of a policyholder or beneficiary who is a related party amounts that are payable as (a) policy dividends or bonuses, or (b) policy proceeds on the surrender or maturity of the policy or on the death of the person whose life is insured where the liabilities of the company in respect of the policies or the amounts accepted or retained vary in amount depending on the market value of a specified group of assets.