A-32 - Act respecting insurance

Section 275 Disposition versions

2003-02-12

275. Every insurer must maintain an adequate capital base consistent with sound and prudent management.

1974, c. 70, s. 275; 1979, c. 33, s. 21; 1984, c. 22, s. 58; 2002, c. 70, s. 105.

1984-10-01

275. Every insurer shall maintain assets that exceed its liabilities in accordance with the valuation standards established by regulation.

The Government may fix, by regulation, a method for determining the minimum excess amount of assets over liabilities that every insurer is required to maintain to continue its operations without restrictions or conditions.

Notwithstanding any regulation made under the second paragraph, the Inspector General may give written directives to an insurer to require it to maintain a greater excess amount than the amount determined according to the method fixed by regulation, taking into account the particular composition of its assets or liabilities; the insurer shall comply with the directives within the time limit fixed by the Inspector General.

1974, c. 70, s. 275; 1979, c. 33, s. 21; 1984, c. 22, s. 58.

1979-11-21

275. Every insurer, other than a mutual association, transacting damage insurance must maintain assets, calculated in accordance with the standards prescribed by regulation, which must not be less than the sum of 115 per cent of its reserves maintained in accordance with subparagraphs a, b and c of the first paragraph of section 277 and the amount of its other liabilities.

Where, under the policies issued by an insurer with respect to a particular class of insurance, the expected claims ratio is less than 95 per cent, the insurer may, with respect to the assets to be maintained for the aforementioned reserves, select the expected claims ratio, increased by 20 per cent, provided that the result obtained is not less than 100 per cent.

However, the claims ratio selected by the insurer shall not be less than the sum of 60 per cent of the ratio experienced in respect of the last year and forty per cent of the ratio experienced in the preceding year.

1974, c. 70, s. 275; 1979, c. 33, s. 21.