PART II GENERAL PROVISIONS APPLICABLE TO INSURERS
What insurers may be licensed
42 (1) Upon due application and upon proof of compliance with this Act, the Chief Executive Officer may issue a licence to undertake contracts of insurance and carry on business in Ontario to any insurer coming within one of the following classes: 1.  Joint stock insurance companies. 2.  Mutual insurance corporations. 3.  Cash-mutual insurance corporations. 4.  Fraternal societies. 5.  Repealed:  1997, c. 19, s. 10 (6). 6.  Companies duly incorporated to undertake insurance contracts and not within classes 1 to 5. 7.  Reciprocal insurance exchanges. 8.  Underwriters or syndicates of underwriters operating on the plan known as Lloyds. 9.  Repealed:  1997, c. 19, s. 10 (6). R.S.O. 1990, c. I.8, s. 42 (1); 1997, c. 19, s. 10 (6); 1997, c. 28, s. 88; 1999, c. 12, Sched. I, s. 4 (6); 2018, c. 8, Sched. 13, s. 22. Note: On a day to be named by proclamation of the Lieutenant Governor, section 42 of the Act is amended by adding the following subsections: (See: 2018, c. 8, Sched. 13, s. 3) Limit, issuance of licence (1.1) After the day section 3 of Schedule 13 to the Plan for Care and Opportunity Act (Budget Measures), 2018 comes into force, the Chief Executive Officer cannot issue a licence under subsection (1) to an insurer unless the insurer satisfies at least one of the following criteria: 1.  The insurer is incorporated in a jurisdiction in Canada other than Ontario, i.  that is prescribed by the Authority rules, and ii.  that has adopted international standards of solvency regulation in accordance with the Authority rules. 2.  The insurer is a foreign company within the meaning of the Insurance Companies Act
(Canada) and is authorized by an order of the Superintendent of Financial Institutions (Canada) made under that Act to insure risks in Canada. 3.  The insurer is a reciprocal insurance exchange licensed under Part XIII of this Act. 4.  The insurer is a mutual insurance corporation incorporated or amalgamated under the Corporations Act. Note: On a day to be named by proclamation of the Lieutenant Governor, paragraph 4 of subsection 42 (1.1) of the Act is amended by adding “and a member of the Fire Mutuals Guarantee Fund” at the end. (See: 2018, c. 17, Sched. 21, s. 1 (1)) 5.  The insurer is owned by a province or municipality, or by an agency, commission or subsidiary of a province or municipality. 6.  The insurer is an insurer incorporated or owned by a professional regulatory body authorized to provide insurance pursuant to its authorizing statute. 2018, c. 8, Sched. 13, s. 3. Same (1.2) For greater certainty, unless an insurer satisfies at least one of the criteria listed in subsection (1.1), the Chief Executive Officer cannot issue a licence under subsection (1.1) to the insurer after the day section 3 of Schedule 13 to the Plan for Care and Opportunity Act (Budget Measures), 2018
comes into force, even if the insurer applied for the licence on or before that date and satisfied the requirements under this Act for the licence as they existed when the application was made. 2018, c. 8, Sched. 13, s. 3. Limit, licence for purpose of dissolving or winding up (1.3) If, within three years after the day section 3 of Schedule 13 to the Plan for Care and Opportunity Act (Budget Measures), 2018 comes into force, an insurer does not satisfy at least one of the following criteria, the insurer’s licence is limited to authorizing the insurer to carry on business in Ontario solely for the purpose of dissolving or winding up its business: 1.  The insurer is incorporated in a jurisdiction in Canada other than Ontario, i.  that is prescribed by the Authority rules, and ii.  that has adopted international standards of solvency regulation in accordance with the Authority rules. 2.  The insurer is a foreign company within the meaning of the Insurance Companies Act
(Canada) and is authorized by an order of the Superintendent of Financial Institutions (Canada) made under that Act to insure risks in Canada. 3.  The insurer is a reciprocal insurance exchange licensed under Part XIII of this Act. 4.  The insurer is a mutual insurance corporation incorporated or amalgamated under the Corporations Act. Note: On a day to be named by proclamation of the Lieutenant Governor, paragraph 4 of subsection 42 (1.3) of the Act is amended by adding “and a member of the Fire Mutuals Guarantee Fund” at the end. (See: 2018, c. 17, Sched. 21, s. 1 (2)) 5.  The insurer is owned by a province or municipality, or by an agency, commission or subsidiary of a province or municipality. 6.  The insurer is an insurer incorporated or owned by a professional regulatory body authorized to provide insurance pursuant to its authorizing statute. 2018, c. 8, Sched. 13, s. 3. Authorized insurance (2) A licence issued under this Act authorizes the insurer named therein to exercise in Ontario all rights and powers reasonably incidental to the carrying on of the business of insurance named therein that are not inconsistent with this Act or with its Act or instrument of incorporation or organization.  R.S.O. 1990, c. I.8, s. 42 (2). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 10 (6) - 10/10/1997; 1997, c. 28, s. 88 - 01/07/1998; 1999, c. 12, Sched. I, s. 4 (6) - 01/01/2001 2018, c. 8, Sched. 13, s. 3 - not in force; 2018, c. 8, Sched. 13, s. 22 - 08/06/20192018, c. 17, Sched. 21, s. 1 (1, 2) - not in force