A-32 - Act respecting insurance

Section 285.17 Disposition versions

2004-12-17

285.17. An insurer, a holding company that controls an insurer and any subsidiary of an insurer must, when doing business with restricted parties with respect to the insurer, act in their regard in the same manner as when they are dealing at arm’s length. In addition, any federation of mutual insurance associations must, when doing business with restricted parties with respect to a mutual insurance association that is a member of the federation, act in their regard in the same manner as when it is dealing at arm’s length.

The same applies where an insurer, a holding company that controls an insurer and any subsidiary of the insurer do business with associates of directors or officers of the insurer or, in the case of a federation of mutual insurance associations, where it does business with associates of directors or officers of the mutual insurance association that is a member of the federation.

In cases of contestation, the onus is on the insurer, the holding company that controls an insurer, the subsidiary of an insurer or, as the case may be, the federation of mutual insurance associations to show that they were dealing at arm’s length.

However, notwithstanding the first paragraph, a contract may be entered into, where the parties include an insurer, a holding company that controls an insurer, the subsidiary of an insurer and a legal person in which the insurer or its subsidiary holds more than 30% of the shares provided such a contract is authorized by the Authority. The same applies to a contract between a mutual insurance association and a legal person belonging to the same group as its federation.

In addition, the first paragraph does not apply to contracts concerning the conditions of employment, pension funds, insurance schemes and any other matter connected with contracts of employment of an employee or an officer.

1990, c. 86, s. 39; 1996, c. 63, s. 80; 2002, c. 70, s. 115; 2004, c. 37, s. 90.

2003-02-12

285.17. An insurer, a holding company that controls an insurer and any subsidiary of an insurer must, when doing business with restricted parties with respect to the insurer, act in their regard in the same manner as when they are dealing at arm’s length. In addition, any federation of mutual insurance associations must, when doing business with restricted parties with respect to a mutual insurance association that is a member of the federation, act in their regard in the same manner as when it is dealing at arm’s length.

The same applies where an insurer, a holding company that controls an insurer and any subsidiary of the insurer do business with associates of directors or officers of the insurer or, in the case of a federation of mutual insurance associations, where it does business with associates of directors or officers of the mutual insurance association that is a member of the federation.

In cases of contestation, the onus is on the insurer, the holding company that controls an insurer, the subsidiary of an insurer or, as the case may be, the federation of mutual insurance associations to show that they were dealing at arm’s length.

However, notwithstanding the first paragraph, a contract may be entered into, where the parties include an insurer, a holding company that controls an insurer, the subsidiary of an insurer and a legal person in which the insurer or its subsidiary holds more than 30 % of the shares provided such a contract is authorized by the Agency. The same applies to a contract between a mutual insurance association and a legal person belonging to the same group as its federation.

In addition, the first paragraph does not apply to contracts concerning the conditions of employment, pension funds, insurance schemes and any other matter connected with contracts of employment of an employee or an officer.

1990, c. 86, s. 39; 1996, c. 63, s. 80; 2002, c. 70, s. 115.

1996-12-23

285.17. An insurer or any subsidiary thereof shall, in respect of restricted parties and associates of the directors or officers of the insurer with whom it does business, act in the same manner as when it is dealing at arm’s length.

In cases of contestation, the onus is on the insurer or its subsidiary to show that it acted in this manner.

However, notwithstanding the first paragraph, a contract may be entered into, where the parties thereto include an insurer or its subsidiary and an affiliated legal person whose principal activity is an activity referred to in subparagraph d.1 or e of the first paragraph of section 245, provided such a contract is authorized by the Inspector General. The same applies to a contract between a mutual insurance association and a legal person belonging to the same group as its federation, where the principal activity of the legal person is an activity referred to in subparagraph d.1 or e of the first paragraph of section 245.

In addition, the first paragraph does not apply to contracts concerning the conditions of employment, pension funds, insurance schemes and any other matter connected with contracts of employment of an employee or an officer.

1990, c. 86, s. 39; 1996, c. 63, s. 80.

1991-03-15

285.17. An insurer or any subsidiary thereof shall, in respect of restricted parties and associates of the directors or officers of the insurer with whom it does business, act in the same manner as when it is dealing at arm’s length.

In cases of contestation, the onus is on the insurer or its subsidiary to show that it acted in this manner.

However, notwithstanding the first paragraph, a contract may be entered into, where the parties thereto include an insurer or its subsidiary and an affiliated corporation whose principal activity is an activity referred to in subparagraph d.1 or e of the first paragraph of section 245, provided such a contract is authorized by the Inspector General. The same applies to a contract between a mutual insurance association and a corporation belonging to the same group as its federation, where the principal activity of the corporation is an activity referred to in subparagraph d.1 or e of the first paragraph of section 245.

In addition, the first paragraph does not apply to contracts concerning the conditions of employment, pension funds, insurance schemes and any other matter connected with contracts of employment of an employee or an officer.

1990, c. 86, s. 39.