Ancillary Business Corporation Shares
8. (1) The terms and conditions under which a life company may, with the prior approval of the Superintendent, invest its funds in the fully paid shares of an ancillary business corporation under clause 433 (8) (g) of the Act are as follows, (a) the life company shall not make an investment in the shares of an ancillary business corporation unless it has control, or as a result of the investment will acquire control, of that corporation; (b) before an investment is made in the shares of an ancillary business corporation, or before a life company makes application for the incorporation of an ancillary business corporation, the life company shall furnish the Superintendent with such information as he or she may require relating to the proposed investment and, where that investment is in the shares of an existing corporation, the life company shall file with the Superintendent a certified copy of the instrument of incorporation, by-laws and most recent financial statement of that corporation; (c) the life company shall deposit with the Superintendent, within two weeks after making an investment in the shares of an ancillary business corporation, an undertaking by that corporation that, while it is controlled by the life company, the corporation will, (i) provide the Superintendent with copies of its financial statements and such other information concerning its affairs as he or she may from time to time request, and permit the Superintendent or an authorized representative of his or her staff to visit its head office and other offices at any time and examine its books, brochures, securities and documents, (ii) not carry on any business, (A) referred to in clauses 433 (8) (a) to (f) of the Act, or (B) that is not reasonably ancillary to the business of insurance, (iii) not make any investment that the life company is prohibited from making by section 436 of the Act, (iv) not acquire or hold, except with the approval of the Superintendent, more than 30 per cent of the common shares of any corporation, and (v) where it was incorporated to provide services of a kind ordinarily required by the life company, not provide, except with the approval of the Superintendent, those services to any other person unless it also provides them to the life company; (d) the life company shall from time to time at the request of the Superintendent submit such information as he or she may require as evidence that the ancillary business corporation is complying with the undertaking referred to in clause (c); (e) a life company shall not at any time hold an investment in the shares of an ancillary business corporation under clause 433 (8) (g) of the Act unless it controls the corporation at that time; (f) the common shares of the ancillary business corporation owned by the life company shall be taken into account in the annual statement of the life company at a value not greater than the amount obtained by multiplying, (i) an amount equal to the excess of the assets of the corporation over the sum of its liabilities and its issued and paid in preferred capital shares, by, (ii) the proportion that the number of common shares of the corporation owned by the life company bears to the total number of the issued and outstanding common shares of the corporation; and (g) the total book value of the investments held by a life company in the shares of ancillary business corporations under clause 433 (8) (g) of the Act shall not at any time exceed 1 per cent of the book value of the total assets of the life company. R.R.O. 1990, Reg. 671, s. 8 (1); O. Reg. 306/98, s. 3. (2) For the purposes of clause (1) (f), the assets of the ancillary business corporation shall not include any asset that if owned by a life company would not be admitted as an asset in its annual statement and the total value of any securities included in the assets shall not exceed the total of their market values. R.R.O. 1990, Reg. 671, s. 8 (2).