Foreign Life Corporation Shares
3. (1) The terms and conditions under which a life company may, under clause 433 (8) (a) of the Act, invest its funds in the fully paid shares of a foreign life corporation are as follows, (a) subject to clause (b), the life company shall not make or hold an investment in the shares of a foreign life corporation unless it has control, or as a result of the investment will acquire control, of the corporation; (b) although it does not have control or would not as a result of the proposed investment acquire control of a foreign life corporation, a life company may, with the approval of the Superintendent, make or hold an investment in the shares of that corporation where, (i) the life company and one or more other life companies have control, or as a result of the investment will acquire control, of a foreign life corporation, or (ii) in the case of a life company that has transacted the business of insurance in the country or state in which the corporation was incorporated, (A) the laws of that country or state do not permit the life company to acquire or retain control of the corporation, or (B) the social or economic circumstances in that country or state or the conditions of transacting the business of insurance therein are such that, in the opinion of the Superintendent, investment is in the best interests of the policyholders of the life company; (c) before an investment is made in the shares of a foreign life 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; (d) the life company shall deposit with the Superintendent within two weeks after making an investment in the shares of a foreign life corporation, an undertaking by the corporation that, while the life company holds an investment in the shares of the foreign life corporation, the corporation will, (i) provide the Superintendent with copies of its financial statements and such other information concerning its financial condition and affairs as he or she may from time to time request, (ii) limit its activities to the transaction of the business of life insurance and accident and sickness insurance, together with such other activities as may be necessarily incidental to the transaction of such business, (iii) not make any investment that the life company is prohibited from making by section 436 of the Act, (iv) not acquire or hold shares of any corporation incorporated to undertake contracts of life insurance, and (v) not acquire or hold, except with the approval of the Superintendent, more than 30 per cent of the common shares of any corporation except a real estate corporation; (e) the life company shall from time to time at the request of the Superintendent submit such information as the Superintendent may require as evidence that the foreign corporation is complying with the undertaking referred to under clause (d); (f) the life company shall not, except with the approval of the Superintendent, solicit applications for insurance in any jurisdiction where the foreign life corporation is soliciting applications for insurance; (g) the common shares of the foreign life 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 (h) where the life company has made an investment in the shares of one or more foreign life corporations the aggregate of, (i) the amounts invested by the life company in the shares of the foreign life corporations, (ii) the amounts advanced, lent or in any way contributed by the life company to the foreign life corporations, and (iii) the amounts, other than the amounts referred to in subclause (ii), owing to the life company by the foreign life corporations, shall not at any time, except with the approval of the Superintendent, exceed 2 per cent of the book value of the total assets of the life company. R.R.O. 1990, Reg. 671, s. 3 (1); O. Reg. 306/98, s. 1; O. Reg. 66/07, s. 1. (2) For the purposes of clause (1) (g), (a) the assets of the foreign life corporation shall not include any asset, other than an investment or loan, that if owned by the life company would not be admitted as an asset in the annual statement of the life company; (b) the total value of the securities included in the assets of the foreign life corporation shall not exceed the values established by the Superintendent; and (c) the liabilities of the foreign life corporation shall be such amount, not less than the liabilities shown on its books and including the actuarial reserves for policies in force as may be certified by an actuary, to adequately provide for the financial obligations of the company. R.R.O. 1990, Reg. 671, s. 3 (2). (3) For the purposes of subclauses (1) (h) (i) and (ii), the amounts referred shall be converted to Canadian dollars at the rates of exchange in effect at the time the investment, advance, loan or contribution was made. R.R.O. 1990, Reg. 671, s. 3 (3). (4) For the purposes of subclause (1) (h) (iii), the amounts referred shall be converted to Canadian dollars at the current rate of exchange. R.R.O. 1990, Reg. 671, s. 3 (4). Fire and Casualty Corporation Shares