BILL NO. 238
2nd Session, 63rd General Assembly
69 Elizabeth II, 2020
The Honourable Karen Casey
Minister responsible for the Insurance Act
First Reading: February 28, 2020
Second Reading: March 3, 2020
Third Reading: March 9, 2020 (LINK TO BILL AS PASSED)
Clause 1 allows the Governor in Council to make regulations authorizing persons to trade in life insurance and life insurance benefits.
Clause 2 prevents the payment into contracts of life insurance of amounts not related to the costs of that insurance.
Clause 3 prohibits the trading of life insurance or benefits except by insurers, authorized agents of insurers and those authorized by the regulations.
1 (1) Subsection 5(3) of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, as amended by Chapter 1 of the Acts of 2003 (Second Session), is further amended by
- (na) authorizing persons or classes of persons for the purpose set out in subsection 226A(2);
2 Chapter 231 is further amended by adding immediately after Section 203 the following Section:
- 203A (1) In this Section,
(b) "side account" means an account associated with or a part of a contract that is intended to hold amounts in excess of the maximum amount permitted to be held in a contract that is exempt from accrual taxation pursuant to the Income Tax Act (Canada).
- (i) the amount required to pay future costs of insurance, related premium taxes and administrative fees or charges, and
(b) with respect to a contract that is not exempt from accrual taxation pursuant to the Income Tax Act (Canada), the amount that may be held in a contract together with any associated side account must not exceed the amount required to pay future costs of insurance, related premium taxes and administrative fees or charges.
(3) The amounts referred to in clauses (a) and (b) of subsection (2) are as determined from time to time by the insurer on an actuarial basis using the remaining lifetime of the persons then insured under the contract.
3 Chapter 231 is further amended by adding immediately after Section 226 the following Section:
- 226A (1) Any person, other than an insurer or its authorized agent, who advertises or purports to be a purchaser of insurance or of benefits under insurance or who deals or trades in insurance for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of insurance to the person or any other person is guilty of an offence.
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