Authorized Types of Insurance
34. (1) A credit union may administer the following types of insurance: 1. Insurance related to a credit card or charge card issued by the credit union. 2. Creditors’ disability insurance. 3. Creditors’ life insurance. 4. Creditors’ insurance for loss of employment. 5. Creditors’ vehicle inventory insurance. 6. Export credit insurance. 7. Group accident and sickness insurance. 8. Group life insurance. 9. Mortgage insurance. 10. Travel insurance. O. Reg. 76/95, s. 34 (1). (2) A credit union that, on March 1, 1995, administers an insurance policy other than one authorized under subsection (1) may continue to administer the policy with respect to a person to whom coverage is provided on that date. O. Reg. 76/95, s. 34 (2). (3) For the purposes of subsection (1), “insurance related to a credit card or charge card” refers to a policy of an insurance company that provides the types of insurance described in this subsection to the holder of a credit card or charge card as a feature of the card without request and without an individual assessment of risk. The policy may provide insurance against the loss of, or damage to, goods purchased with the card. The policy may also provide insurance against any loss arising from a contractual liability assumed by the holder when renting a vehicle, if the rental is paid for with the card. The policy may also provide for the extension of a warranty provided by the manufacturer of the goods purchased with the card. O. Reg. 76/95, s. 34 (3). (4) For the purposes of subsection (1), “creditors’ disability insurance” refers to a group insurance policy that will pay to the credit union all or part of the amount of a debt owed to the credit union by a debtor. Payment will be made only in the event of bodily injury to or the illness or disability of, (a) the debtor or his or her spouse, if the debtor is an individual; (b) an individual who is a guarantor of all or part of the debt; (c) a director or officer of a debtor that is a body corporate; or (d) an individual who is essential to the ability of a debtor that is an entity to meet the debtor’s financial obligations to the credit union. O. Reg. 76/95, s. 34 (4); O. Reg. 110/00, s. 1 (1); O. Reg. 309/05, s. 1 (1). (5) For the purposes of subsection (1), “creditors’ life insurance” refers to a group insurance policy that will pay to the credit union all or part of the amount of a debt owed to the credit union by a debtor or all or part of the amount of the credit limit under a line of credit for a debt relating to a small business, a farm, a fishery or a ranch. Payment will be made only in the event of the death of, (a) the debtor or his or her spouse, if the debtor is an individual; (b) an individual who is a guarantor of all or part of the debt; (c) a director or officer of a debtor that is a body corporate; or (d) an individual who is essential to the ability of a debtor that is an entity to meet the debtor’s financial obligations to the credit union. The small business must be a business that is or, if it were incorporated, would be a small business corporation within the meaning of subsection 248 (1) of the Income Tax Act (Canada). The line of credit must be a commitment to lend amounts up to a predetermined limit that does not involve a predetermined repayment schedule. The credit limit must not exceed the reasonable credit needs of the debtor or the lending limits of the credit union. O. Reg. 76/95, s. 34 (5); O. Reg. 110/00, s. 1 (2); O. Reg. 309/05, s. 1 (2). (6) For the purposes of subsection (1), “creditors’ insurance for loss of employment” refers to a policy of an insurance company that will pay to the credit union all or part of the amount of a debt owed to the credit union. The insurance policy will be made without an individual assessment of risk. Payment will be made only in the event that, (a) the debtor becomes involuntarily unemployed, if the debtor is an individual; or (b) an individual who is a guarantor of any portion of the debt becomes involuntarily unemployed. O. Reg. 76/95, s. 34 (6). (7) For the purposes of subsection (1), “creditors’ vehicle inventory insurance” refers to a policy of an insurance company that provides insurance against direct and accidental loss or damage to vehicles held in stock for display and sale purposes by a debtor of the credit union. Some or all of the vehicles must have been financed by the credit union. O. Reg. 76/95, s. 34 (7). (8) For the purposes of subsection (1), “export credit insurance” refers to a policy of an insurance company that provides insurance to an exporter of goods or services against a loss incurred by the exporter because goods or services are not paid for. O. Reg. 76/95, s. 34 (8). (9) For the purposes of subsection (1), “group accident and sickness insurance” refers to a group insurance policy between an insurance company and the credit union. The policy provides accident and sickness insurance severally for persons who individually hold certificates of insurance. The insurance must be restricted to the credit union’s employees, its members and the employees of its subsidiaries. O. Reg. 76/95, s. 34 (9). (10) For the purposes of subsection (1), “group life insurance” refers to a group insurance policy between an insurance company and the credit union. The policy provides life insurance severally for persons who individually hold certificates of insurance. The insurance must be restricted to the credit union’s employees, its members and the employees of its subsidiaries. O. Reg. 76/95, s. 34 (10). (11) For the purposes of subsection (1), “mortgage insurance” refers to a policy of an insurance company that provides insurance to the credit union against a loss caused by a default under a loan by the credit union secured by a mortgage on real estate or an interest in real estate. The debtor must be an individual. O. Reg. 76/95, s. 34 (11). (12) For the purposes of subsection (1), “travel insurance” refers to either of the following: 1. A policy of an insurance company that provides the types of insurance described in this paragraph to an individual in respect of a trip by him or her away from the place where he or she ordinarily resides. The insurance is provided without an individual assessment of risk. The policy may provide insurance against a loss that results from the cancellation or interruption of the trip. It may provide insurance against the loss of or damage to personal property that occurs while the individual is on the trip. It may provide insurance against a loss caused by the delayed arrival of personal baggage while the individual is on the trip. 2. A group insurance policy that provides the types of insurance described in this paragraph to an individual in respect of a trip by him or her away from the province in which he or she ordinarily resides. The policy may provide insurance against expenses incurred during the trip that result from the individual’s illness or disability that occurs during the trip. It may provide insurance against expenses incurred during the trip that result from bodily injury to or the death of the individual caused by an accident during the trip. It may provide insurance against expenses incurred by the individual for dental care required as a result of an accident during the trip. It may provide insurance in the event that the individual dies during the trip, against expenses incurred for the return of his or her remains to the place where he or she ordinarily resided before death, or for travel expenses incurred by a relative who must travel to identify the remains. The policy may provide that the insurance company undertakes to pay money in the event of the individual’s illness or disability that occurs during the trip or bodily injury to or the death of the individual caused by an accident during the trip. O. Reg. 76/95, s. 34 (12).