Limits on investments
 19. (1) For the purposes of subsections 435.10 (1) and 435.11 (2) of the Act, the amount determined under the regulations is the sum of, (a) 70 per cent of the amount determined under subsection (3); (b) 15 per cent of the insurer’s liabilities in respect of life insurance policies that are not participating policies; (c) 25 per cent of the insurer’s liabilities in respect of life insurance policies that are participating policies; and (d) five per cent of the insurer’s liabilities in respect of, (i) all life annuities, whether or not for a guaranteed term, in respect of which the insurer has contracted with the annuitant to make regular payments of defined amounts, (ii) all annuities in respect of which the insurer has guaranteed a rate of interest for a term of more than 10 years after the date on which the contract is entered into, (iii) all group long-term disability annuities in respect of which the insurer has contracted with the annuitant to make regular periodic payments of defined amounts to retirement age, and (iv) all other disability annuities in respect of which the insurer has contracted with the annuitant to make regular periodic payments of defined amounts, (A) while the disability of the annuitant continues, to age 65, or (B) for life.  O. Reg. 121/08, s. 19 (1). (2) For the purposes of subsection 435.12 (2) of the Act, the amount determined under the regulations is the sum of, (a) the amount determined under subsection (3); (b) 20 per cent of the insurer’s liabilities in respect of life insurance policies that are not participating policies; (c) 40 per cent of the insurer’s liabilities in respect of life insurance policies that are participating policies; and (d) the amount determined under clause (1) (d).  O. Reg. 121/08, s. 19 (2). (3) For the purposes of clauses (1) (a) and (2) (a), the amount determined under this subsection is the amount by which the insurer’s capital exceeds the sum of, (a) all amounts each of which is included in the capital of the insurer and is, (i) the amount by which the total assets of any financial institution controlled by the insurer, or of any entity controlled by the financial institution, exceeds the total liabilities (including deferred taxes and subordinated indebtedness) of the financial institution or entity, (ii) an amount equal to the total deferred realized capital gains less the total deferred realized capital losses from real estate and share transactions of a financial institution referred to in subclause (i) that is an insurer licensed to transact the business of life insurance, or (iii) the amount of subordinated indebtedness issued by a financial institution or entity referred to in subclause (i); (b) all amounts included in the capital of the insurer each of which is the amount of a minority interest in, (i) a financial institution controlled by the insurer, or (ii) an entity controlled by a financial institution that is controlled by the insurer; (c) all amounts each of which is the amount of an investment, other than subordinated indebtedness referred to in subclause (a) (iii), made by the insurer or a designated entity controlled by the insurer in a financial institution or in an entity controlled by a financial institution controlled by the insurer, that are included, (i) in the capital of an insurer, or (ii) in the amount that would be treated as capital of a financial institution for the purposes of capital adequacy rules by the regulatory body that regulates the financial institution; and (d) all amounts each of which is the amount of a loan, other than subordinated indebtedness referred to in subclause (a) (iii), made by the insurer or by a designated entity controlled by the insurer, to another insurance company incorporated by or under the laws of Canada or of a Province, to a securities dealer controlled by the other insurer or to an entity controlled by an insurance company or securities dealer controlled by the insurer, that are included, (i) in the capital of an insurer, or (ii) in the amount that would be treated as the capital of the other insurance company or the securities dealer by the regulatory body that regulates the insurance company or securities dealer, as the case may be.  O. Reg. 121/08, s. 19 (3). (4) For the purposes of subsection 435.14 (1) of the Act, the value of participating shares and ownership interests referred to in sections 435.11 and 435.12 of the Act that are beneficially owned by an insurer or by those of its subsidiaries that are prescribed subsidiaries for the purposes of section 435.14 of the Act is the book value of the shares and ownership interests that would be reported on the insurer’s consolidated balance sheet as of the time the determination is made.  O. Reg. 121/08, s. 19 (4). Interests in Real Property