jswizzle3737/ontario_laws_and_regs huggingface dataset:
Application
 1. (1) This Regulation applies to insurers that are subject to Part XVII of the Act and licensed under the Act to transact the business of life insurance, but does not apply to fraternal societies.  O. Reg. 121/08, s. 1 (1). (2) Unless otherwise provided, a reference in this Regulation to an insurer is a reference to an insurer to which this Regulation applies.  O. Reg. 121/08, s. 1 (2).
Commercial loan, prescribed matters
 3. (1) For the purposes of subclause (a) (i) of the definition of “commercial loan” in subsection 432 (1) of the Act, the prescribed amount is $250,000.  O. Reg. 121/08, s. 3 (1). (2) The following international agencies are prescribed for the purposes of subclauses (a) (iii) and (b) (ii) of the definition of “commercial loan” in subsection 432 (1) of the Act: 1. The International Bank for Reconstruction and Development. 2. The International Finance Corporation. 3. The Inter-American Development Bank. 4. The Asian Development Bank. 5. The African Development Bank. 6. The European Investment Bank. 7. The Caribbean Development Bank. 8. The Nordic Investment Bank. 9. The European Bank for Reconstruction and Development. 10. The Council of Europe Development Bank.  O. Reg. 121/08, s. 3 (2). (3) For the purposes of subclauses (b) (iv) and (c) (i) of the definition of “commercial loan” in subsection 432 (1) of the Act, securities that are debt obligations, shares or ownership interests are widely distributed if the following conditions are satisfied: 1. In the case of debt obligations the distribution of which is exempt from the requirement to file a prospectus under the laws of Ontario, Canada, another province of Canada or a jurisdiction outside Canada, i. at least 90 per cent of the maximum authorized principal of the debt obligations is held by one or more persons other than the insurer and its subsidiaries and, A. the debt obligations were issued to at least 25 persons other than the insurer and its subsidiaries within six months after the day on which the first of the debt obligations was issued, or B. if the debt obligations are issued on a continuous basis, there are on average at least 25 holders other than the insurer and its subsidiaries, or ii. at the time of their initial distribution, the debt obligations satisfied at least three of the following conditions: A. their initial term was less than one year, B. they were rated by a rating agency, C. they were distributed through a person authorized to trade in securities, and D. they were distributed in accordance with an offering circular or memorandum or a similar document relating to the distribution of securities. 2. In the case of securities other than debt obligations described in paragraph 1, i. the securities are listed and posted for trading on a recognized stock exchange, or ii. a prospectus relating to the issuance of the securities was filed under the laws of Ontario, Canada, another province in Canada or a jurisdiction outside Canada.  O. Reg. 121/08, s. 3 (3).
Prescribed subsidiary
 4. For the purposes of the definition of “prescribed subsidiary” in subsection 432 (1) of the Act, a prescribed subsidiary of an insurer is, (a) for the purposes of subsection 435.9 (1) of the Act, any subsidiary of the insurer; and (b) for the purposes of Part XVII of the Act other than subsection 435.9 (1), a subsidiary of the insurer that is not, (i) a financial institution, or (ii) an entity that is a subsidiary of a financial institution for a reason other than because it is a subsidiary of the insurer.  O. Reg. 121/08, s. 4. Substantial Investments in Permitted Entities
Substantial Investments in Permitted Entities
nan
Continuation of exceptions
 7. (1) Subject to subsection (3), the rules in subsection (2) apply in respect of a substantial investment held by an insurer in the following circumstances: 1. The insurer was permitted under a particular provision of the Act or the regulations to acquire and did acquire a substantial investment in a particular entity. 2. The insurer is no longer permitted under the particular provision to hold the substantial investment. 3. The insurer could qualify to hold the substantial investment under another provision of the Act or this Regulation.  O. Reg. 121/08, s. 7 (1). (2) In the circumstances described in subsection (1), the insurer is entitled to continue to hold the substantial investment under the provision referred to in paragraph 3 of subsection (1) if any conditions that must be satisfied in order for the insurer to be entitled to hold the substantial investment under that provision are satisfied.  O. Reg. 121/08, s. 7 (2). (3) Subsection (1) does not apply in respect of a substantial investment if clause 435.3 (4) (b), 435.4 (4) (b) or 435.6 (4) (b) of the Act applies.  O. Reg. 121/08, s. 7 (3). Chief Executive Officer’s Approval
Chief Executive Officer’s Approval
nan
Criteria for Chief Executive Officer’s approval
 8. In determining whether to give an approval referred to in clause 435.3 (4) (b), 435.4 (4) (b) or 435.6 (1) (a), (b), (c) or (d) of the Act, the Chief Executive Officer shall consider, (a) whether the investment can reasonably be expected to expose the insurer to an undue risk; and (b) whether the investment can reasonably be expected to hinder the supervision and regulation of the insurer.  O. Reg. 121/08, s. 8; O. Reg. 131/19, s. 3. Specialized Financing Activities
Specialized Financing Activities
nan
Specialized financing entities
 10. (1) Despite section 435.5 of the Act, an insurer shall not acquire, hold or increase a substantial investment in a specialized financing entity if, (a) the value of the outstanding debt obligations of the specialized financing entity and any specialized financing entity of the insurer controlled by the specialized financing entity, other than debt obligations payable to the insurer or entities controlled by the insurer, as reported on their respective balance sheets prepared on an unconsolidated basis, exceeds twice the sum of, (i) the amount by which the value of the assets of the specialized financing entity exceed its liabilities, as reported on its balance sheet prepared on an unconsolidated basis, and (ii) the value of all equity interests held by persons other than the insurer or an entity controlled by the insurer in specialized financing entities of the insurer that are controlled by the specialized financing entity, as reported on the balance sheet of the specialized financing entity prepared on the equity basis; (b) the specialized financing entity controls or holds shares of or ownership interests in any of the entities referred to in clauses 9 (2) (a) to (d); (c) the total book value of all shares and ownership interests, other than shares or ownership interests held by the specialized financing entity in a specialized financing entity of the insurer that it controls, that the insurer, the specialized financing entity, subsidiaries of the insurer or other specialized financing entities of the insurer hold or would hold in an entity in which the specialized financing entity holds a substantial investment, is more than $250 million; (d) the sum of the values under paragraphs 1, 2 and 3 of subsection 9 (5) exceeds or would exceed 10 per cent of the insurer’s capital; or (e) the sum of the values under paragraphs 1 and 2 of subsection 9 (6) exceeds or would exceed 25 per cent of the insurer’s capital.  O. Reg. 121/08, s. 10 (1). (2) Despite section 435.5 of the Act, an insurer shall not acquire or hold a substantial investment in a specialized financing entity if, (a) the specialized financing entity has, for more than 13 consecutive years, held a substantial investment in any entity that is not another specialized financing entity of the insurer; or (b) the specialized financing entity and any one or more of the insurer and other specialized financing entities of the insurer have held, one after the other for more than 13 consecutive years, a substantial investment in any entity that is not a specialized financing entity of the insurer.  O. Reg. 121/08, s. 10 (2). (3) For the purposes of subsection (2), any period of time during which a substantial investment was held by a specialized financing entity of an insurer before it became a specialized financing entity of the insurer shall not be included in the calculation of the length of time during which the specialized financing entity held the substantial investment.  O. Reg. 121/08, s. 10 (3). Other Investments
Other Investments
nan
Investments outside control of insurer
 11. For the purposes of clause 435.6 (1) (f) of the Act, an insurer may acquire or increase a substantial investment in an entity, irrespective of whether it is a permitted entity or the investment is otherwise permitted under the Act or this Regulation, if the acquisition or increase is the result of one or more events that are outside the control of the insurer.  O. Reg. 121/08, s. 11. Restrictions and Limits on Insurer’s Business Activities
Restrictions and Limits on Insurer’s Business Activities
nan
Limit on loans secured by residential mortgages
 12. (1) For the purposes of section 435.7 of the Act, an insurer shall not make a loan in Canada or acquire, hold or increase a substantial investment in a permitted entity described in subsection 5 (1) that makes a loan in Canada if, (a) the loan is made on the security of residential real property for the purpose of purchasing, renovating or improving the real property or refinancing a loan made for that purpose; and (b) the amount of the loan plus the amount then outstanding of all other liabilities secured by mortgages having equal or prior claims against the real property would exceed 80 per cent of the value of the real property at the time the insurer makes the loan or acquires the substantial investment.  O. Reg. 121/08, s. 12 (1). (2) Subsection (1) does not apply in respect of, (a) a loan made or guaranteed under the National Housing Act (Canada) or any other Act of Parliament or of Ontario under which a different limit is established on the value of property on the security of which the insurer may make a loan; (b) a loan that would otherwise be prohibited by reason of clause (1) (b) if repayment of the portion of the loan that exceeds the maximum value set out in that clause is guaranteed or insured by a government agency or by an insurance company approved by the Chief Executive Officer; (c) the acquisition by the insurer from an entity of securities issued or guaranteed by the entity that are secured on any residential real property, whether in favour of a trustee or otherwise, or the making of a loan by the insurer to the entity against the issue of the securities; or (d) a loan secured by a mortgage taken back by the insurer on the disposition of property by the insurer, including a disposition for the purpose of realization of a security interest, if the mortgage secures payment of an amount payable to the insurer for the property.  O. Reg. 121/08, s. 12 (2); O. Reg. 131/19, s. 3.
Restriction on loans to certain entities
 13. (1) This section applies if an insurer holds a substantial investment in a permitted entity listed in any of subparagraphs 2 i to v of subsection 5 (4) and the insurer is entitled to hold the substantial investment by reason of paragraph 3 of subsection 5 (4) or subsection 5 (7).  O. Reg. 121/08, s. 13 (1). (2) The insurer shall not make a loan to or give a guarantee on behalf of the permitted entity, and shall not permit any subsidiary of the insurer to do so, if, after making the loan or giving the guarantee, the total value of the investments and loans described in subparagraphs 3 i to iii of subsection 5 (4) would exceed 50 per cent of the insurer’s capital.  O. Reg. 121/08, s. 13 (2). (3) Paragraphs 1, 2 and 3 of subsection 5 (9) apply for the purposes of determining the total value of investments and loans for the purposes of subsection (2).  O. Reg. 121/08, s. 13 (3).
Restriction on guarantees
 14. (1) For the purposes of section 435.7 of the Act, an insurer shall not guarantee on behalf of any person the payment or repayment of money unless, (a) the payment or repayment is of a fixed amount, with or without interest; and (b) the person on whose behalf the insurer has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the insurer for the full amount of the payment or repayment to be guaranteed.  O. Reg. 121/08, s. 14 (1). (2) Clause (1) (a) does not apply if the person on whose behalf the insurer undertakes to guarantee a payment or repayment is a subsidiary of the insurer.  O. Reg. 121/08, s. 14 (2).
Restriction on financial leasing activities
 15. For the purposes of section 435.7 of the Act, an insurer shall not engage in Canada in any leasing activity in respect of personal property that, if carried on by a financial leasing entity, would disqualify the financial leasing entity from being a permitted entity for the purposes of the Act.  O. Reg. 121/08, s. 15.
Holding own shares
 16. (1) For the purposes of section 435.7 of the Act and subject to subsection (2), an insurer shall not do any of the following: 1. Hold any of its issued shares or any shares issued by a corporation that controls the insurer. 2. Hold an ownership interest in an unincorporated entity that controls the insurer. 3. Permit any of its subsidiaries to hold shares issued by the insurer or by a corporation that controls the insurer. 4. Permit any of its subsidiaries to hold an ownership interest in an unincorporated entity that controls the insurer.  O. Reg. 121/08, s. 16 (1). (2) Subsection (1) does not apply in respect of, (a) the redemption of preference shares in accordance with section 28 of the Corporations Act; (b) the purchase of shares of the insurer under a plan for the conversion of the insurer into a mutual company in accordance with section 211 of the Corporations Act; (c) the holding of shares by the insurer or by a subsidiary of the insurer as an executor, administrator, guardian or trustee in accordance with subsection 111 (2) of the Corporations Act or the holding of an ownership interest in the same capacity in similar circumstances; or (d) subject to the Corporations Act, the holding of shares or an ownership interest for a period of not more than 180 days if the shares or ownership interest are acquired on the realization of a security interest.  O. Reg. 121/08, s. 16 (2).
Value of loans, investments and interests in property
 17. (1) For the purposes of subsection 435.8 (1) of the Act, if an investment is acquired by an insurer or a prescribed subsidiary under section 435.6 of the Act, the value of the investment shall not be included in calculating the value of loans, investments and interests in property acquired by the insurer or prescribed subsidiary for the purposes of sections 435.9 to 435.12.  O. Reg. 121/08, s. 17 (1). (2) Subsection (1) and subsection 435.8 (1) of the Act do not apply to an investment or an interest in real property if the insurer or prescribed subsidiary acquired the investment or interest in real property, (a) as a result of the realization of a security interest in real property that is a loan, debt obligation or guarantee described in any of items 11 to 19 in the Table in subsection 20 (1); or (b) as a result of a default referred to in subsection 435.3 (1) of the Act under the terms of the agreement governing an interest in real property that is a loan, debt obligation or guarantee referred to in any of the items mentioned in clause (a).  O. Reg. 121/08, s. 17 (2).
Commercial loan limit
 18. (1) For the purposes of subsection 435.9 (2) of the Act, the amount determined under the regulations is five per cent of the total assets of the insurer.  O. Reg. 121/08, s. 18 (1). (2) For the purposes of subsection (1), the total assets of the insurer is the amount that would be calculated under section 21 as the total assets of the insurer for the purposes of section 435.14 of the Act if the insurer’s last balance sheet prepared before the time of the calculation is deemed to be the balance sheet that would be prepared as of the time the determination is made under subsection 435.9 (2) of the Act.  O. Reg. 121/08, s. 18 (2).
Interests in Real Property
nan
Matters Prescribed for the Purposes of Section 435.14 of the Act
nan
Total assets for purposes of s. 435.14 of the Act
 21. (1) For the purposes of section 435.14 of the Act, the total assets of an insurer at a particular time is the amount calculated using the formula, A – B in which, “A” is the total amount of the assets reported on the insurer’s last balance sheet prepared in accordance with section 104 of the Act before that time, and “B” is the total amount of the assets included in the value of “A” that are assets of a subsidiary of the insurer that is, (a) a financial institution, or (b) a subsidiary of a financial institution that is not a subsidiary of the financial institution only because it is a subsidiary of the insurer. O. Reg. 121/08, s. 21 (1). (2) For the purposes of section 435.14 of the Act, the following rules apply for the purposes of determining the value of assets that are acquired or transferred: 1. The value of assets that are acquired is, i. the fair market value of the assets if the assets are shares of or ownership interests in an entity and the value of the assets of that entity will be included in the annual statement of the insurer after the acquisition, or ii. the purchase price of the assets in any other case. 2. The value of assets that are transferred is, i. the value of the assets as stated in the insurer’s last annual statement if the assets are shares of or ownership interests in an entity and the value of the entity’s assets was included in the insurer’s last annual statement before the transfer, or ii. the book value of the assets as stated in the insurer’s last annual statement prepared before the transfer, in any other case.  O. Reg. 121/08, s. 21 (2). (3) For the purposes of clause 435.14 (3) (c) of the Act, subsection 435.14 (1) of the Act does not apply, (a) to the acquisition by an insurer or its subsidiary of shares of or ownership interests in an entity in circumstances in which the approval of the Chief Executive Officer is required under section 435.1 of the Act; (b) to a transfer or acquisition that is a transaction or part of a series of transactions between the insurer and a financial institution as a result of the insurer’s participation in one or more syndicated loans with that financial institution; or (c) to an acquisition or transfer that has been approved by the Chief Executive Officer under a provision of the Act or this Regulation.  O. Reg. 121/08, s. 21 (3); O. Reg. 131/19, s. 3. 22. Omitted (provides for coming into force of provisions of this Regulation).  O. Reg. 121/08, s. 22.  Français