PART XVII.1 RELATED PARTY TRANSACTIONS
Related parties
437.13 (1) Each of the following persons is a related party in respect of an insurer:  1.  Subject to subsection (4), a person that has a significant interest in a class of shares of the insurer. 2.  An individual who is a director or senior officer of the insurer or of a holding company of the insurer or is acting in a similar capacity in respect of an unincorporated entity that controls the insurer. 3.  The spouse of an individual described in paragraph 1 or 2 or a child under the age of 18 years of an individual described in paragraph 1 or 2. 4.  An entity controlled by a person described in paragraph 1 or 2. 5.  An entity in which the person that controls the insurer has a substantial investment. 6.  An entity in which the spouse of an individual who controls the insurer has a substantial investment or in which a child under the age of 18 years of that individual has a substantial investment. 7.  A person that is deemed to be a related party of the insurer under subsection (4) or is designated as a related party of the insurer under subsection (5) or (6).  2006, c. 33, Sched. O, s. 16. Exceptions (2) Despite subsection (1), an entity is not a related party in respect of an insurer if, (a)  the insurer has a substantial investment in the entity, and, (i)  the entity would otherwise be a related party of the insurer only because a person who controls the insurer also controls the entity or has a substantial investment in the entity, and (ii)  the person referred to in subclause (i) does not control the entity or have a substantial investment in it otherwise than through the person’s controlling interest in the insurer; (b)  the entity is a holding company of the insurer and is an insurer incorporated and licensed under the laws of Ontario; or (c)  the entity is a holding company that is prescribed for the purposes of this clause and the circumstances prescribed in the regulations apply.  2006, c. 33, Sched. O, s. 16; 2007, c. 7, Sched. 18, s. 1 (2). Note: On a day to be named by proclamation of the Lieutenant Governor, clause 437.13 (2) (c) of the Act is repealed and the following substituted: (See: 2018, c. 8, Sched. 13, s. 16) (c)  the entity is a holding company that is prescribed by the Authority rules for the purposes of this clause and the circumstances prescribed in the Authority rules apply. Deemed not to be related party (3) The Chief Executive Officer may make an order providing that the holders of shares of a class of non-voting shares of an insurer are deemed not to be related parties of the insurer if the class of shares is designated in the order and, but for the order, the holders of the shares would have been related parties of the insurer by reason only of having a significant interest in the class of shares.  2006, c. 33, Sched. O, s. 16; 2018, c. 8, Sched. 13, s. 22. Deemed related party (4) If an insurer enters into or is deemed under section 437.17 to have indirectly entered into a transaction with a person in contemplation of the person becoming a related party of the insurer, the person is deemed to be a related party of the insurer for the purposes of this Part in respect of that transaction.  2006, c. 33, Sched. O, s. 16. Designation of related party (5) The Chief Executive Officer may make an order designating a person to be a related party of an insurer for the purposes of this Part if the Chief Executive Officer is of the opinion that, (a)  an interest or relationship exists between the person and the insurer that can reasonably be expected to affect the exercise of the best judgment of the insurer with respect to a transaction; or (b)  the person is acting in concert with a related party of the insurer with respect to entering into a transaction with the insurer and it would be contrary to this Part or the regulations for the related party to enter into the transaction with the insurer.  2006, c. 33, Sched. O, s. 16; 2018, c. 8, Sched. 13, s. 22. Same (6) If the Chief Executive Officer makes an order designating a person as a related party of an insurer, the Chief Executive Officer may make an order designating as a related party of the insurer, (a)  an entity in which the person designated by the Chief Executive Officer has a substantial investment; and (b)  a subsidiary of an entity in which the person designated by the Chief Executive Officer has a substantial investment.  2006, c. 33, Sched. O, s. 16; 2018, c. 8, Sched. 13, s. 22. Appeal (7) The insurer to which an order under this section relates or a person that is designated a related party of the insurer by the order may appeal the order to the Tribunal.  2006, c. 33, Sched. O, s. 16. Section Amendments with date in force (d/m/y) 2006, c. 33, Sched. O, s. 16 - 05/05/2008 2007, c. 7, Sched. 18, s. 1 (2) - 05/05/2008 2018, c. 8, Sched. 13, s. 16 - not in force; 2018, c. 8, Sched. 13, s. 22 - 08/06/2019