A-32 - Act respecting insurance

Section 245 Disposition versions

2003-02-12

245. The provisions of section 244.2 allow the acquisition of shares of a legal person only where the legal person is or becomes, as a result of that acquisition, a legal person controlled by the acquirer.

The first paragraph does not apply in the cases determined by regulation of the Government.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402; 1988, c. 64, s. 554; 1990, c. 86, s. 25; 1994, c. 40, s. 457; 1996, c. 63, s. 39; 2002, c. 70, s. 100.

1996-12-23

245. No insurer may,

(a)  for each of the following classes, make an investment in the same legal person other than a subsidiary or in the same cooperative if that would cause the book value of the aggregate of such investments in each of such classes to exceed 4 % of its assets: common shares, preferred shares, membership shares, permanent shares or preferred shares, preferred equity shares or bonds or other evidences of indebtedness;

(b)  make an investment in the form of a loan, other than a hypothecary loan, that would cause the book value of its investment in respect of a single borrower to exceed 4 % of its assets or, for the aggregate of such loans, 15 % of its assets;

(c)  make an investment in income property that would cause the book value of such investments in respect of a single such property to exceed 4 % of its assets or, for the aggregate of such property, 15 % of its assets;

(d)  control legal persons other than those mentioned in subparagraphs d.1 and e, or, notwithstanding subparagraph b, invest in companies that engage in activities other than those mentioned in subparagraphs d.1 and e;

(d.1)  make an investment in a subsidiary or association whose principal activity is the purchase, management, sale or rental of immovables, the offering of participation in investment portfolios, the making of loans and investments, factoring, leasing or the offering of computer services, actuarial advisory services or travel assistance services, or any other principal activity determined by regulation that would cause the book value of such investments in the subsidiary or association to exceed 4 % of its assets or, for the aggregate of such subsidiaries and associations, 15 % of its assets;

(e)  make an investment in a subsidiary that is an insurer, a bank, a trust company, a savings company or a securities dealer or adviser that would cause the book value of the aggregate of its investments in such a subsidiary to exceed 15 % of its assets;

(f)  make an investment in common shares other than shares of subsidiaries that would cause the book value of its investment in such shares to exceed 25 % of its assets or that would cause the insurer to hold more than 30 % of the shares of the same legal person, except if the legal person is a legal person referred to in subparagraph d.1 or e, whether or not it is a subsidiary of the insurer;

(g)  for all of the classes mentioned in subparagraphs a and b, make an investment in the same legal person other than a subsidiary or the same cooperative, in any form whatsoever, that would cause the book value of the aggregate of such investments to exceed 15 % of its assets;

(h)  make an investment that would cause the book value of the aggregate of its investments under subparagraphs c, d.1, e and f of this paragraph, the first paragraph of section 245.1 and section 247 to exceed 50 % of its assets or the book value of the aggregate of its investments under subparagraphs d.1 and e of this paragraph and section 247 to exceed 25 % of its assets.

Any investment made contrary to subparagraph d of the first paragraph is null of absolute nullity.

However, an insurer that, on 14 March 1991, holds investments which comply with subparagraph d of the first paragraph as it read before 15 March 1991 may continue to hold them notwithstanding subparagraphs d and d.1 of the first paragraph. It may continue to invest in a subsidiary or association other than those referred to in subparagraphs d.1 and e of the first paragraph provided that its total investment in that subsidiary or association does not exceed 4 % of its assets. In addition, such investments must be taken into account in computing the 15 % and 25 % limits prescribed in subparagraphs d.1 and h of the first paragraph.

However, a mutual association or an insurance fund may not control a legal person or invest in an association referred to in subparagraph d.1.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402; 1988, c. 64, s. 554; 1990, c. 86, s. 25; 1994, c. 40, s. 457; 1996, c. 63, s. 39.

1994-10-15

245. No insurer, other than a mutual association or a professional order, may

(a)  invest more than 4 % of its assets in each of the following classes: common shares, preferred shares, shares, permanent shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than 4 % of its assets for a single loan or more than 15 % of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than 4 % of its assets in a single immovable for income purposes or more than 15 % of its assets for all such immovables;

(d)  control corporations other than those mentioned in subparagraphs d.1 and e of this paragraph, nor invest in associations where such associations carry on activities other than those mentioned in subparagraphs d.1 and e;

(d.1)  invest more than 4 % of its assets in a single subsidiary or association whose principal activity is the purchase, management, sale or leasing of immovables, the offering of participation in investment portfolios, the making of loans and investments, factoring, leasing or the offering of computing services, actuarial advisory services or travel assistance services, or any other principal activity determined by regulation, or more than 15 % of its assets in all such subsidiaries and associations;

(e)  invest more than 15 % of its assets in a single subsidiary that is an insurer, a bank, a trust company, a savings company or a securities dealer or adviser;

(f)  invest more than 25 % of its assets in common shares, other than common shares of subsidiaries or hold more than 30 % of the common shares of a single corporation, except if the corporation is a corporation referred to in subparagraph d.1 or e, whether or not it is a subsidiary of the insurer;

(g)  invest more than 15 % of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest a total of more than 50 % of its assets in investments referred to in subparagraphs c, d.1, e and f of this paragraph and in section 247, and a total of more than 25 % of its assets in the investments referred to in subparagraphs d.1 and e of this paragraph and in section 247.

Any investment made contrary to subparagraph d of the first paragraph is null of absolute nullity.

However, an insurer that, on 14 March 1991, holds investments which comply with subparagraph d of the first paragraph as it read before 15 March 1991 may continue to hold them notwithstanding subparagraphs d and d.1 of the first paragraph. It may continue to invest in a subsidiary or association other than those referred to in subparagraphs d.1 and e of the first paragraph provided that its total investment in that subsidiary or association does not exceed 4 % of its assets. In addition, such investments must be taken into account in computing the 15 % and 25 % limits prescribed in subparagraphs d.1 and h of the first paragraph.

The assets of a mutual benefit association or of an insurance fund shall be invested in accordance with the rules governing the investment of moneys belonging to other persons provided in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402; 1988, c. 64, s. 554; 1990, c. 86, s. 25; 1994, c. 40, s. 457.

1991-03-15

245. No insurer, other than a mutual association or a professional corporation, may

(a)  invest more than 4 % of its assets in each of the following classes: common shares, preferred shares, shares, permanent shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than 4 % of its assets for a single loan or more than 15 % of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than 4 % of its assets in a single immovable for income purposes or more than 15 % of its assets for all such immovables;

(d)  control corporations other than those mentioned in subparagraphs d.1 and e of this paragraph, nor invest in associations where such associations carry on activities other than those mentioned in subparagraphs d.1 and e;

(d.1)  invest more than 4 % of its assets in a single subsidiary or association whose principal activity is the purchase, management, sale or leasing of immovables, the offering of participation in investment portfolios, the making of loans and investments, factoring, leasing or the offering of computing services, actuarial advisory services or travel assistance services, or any other principal activity determined by regulation, or more than 15 % of its assets in all such subsidiaries and associations;

(e)  invest more than 15 % of its assets in a single subsidiary that is an insurer, a bank, a trust company, a savings company or a securities dealer or adviser;

(f)  invest more than 25 % of its assets in common shares, other than common shares of subsidiaries or hold more than 30 % of the common shares of a single corporation, except if the corporation is a corporation referred to in subparagraph d.1 or e, whether or not it is a subsidiary of the insurer;

(g)  invest more than 15 % of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest a total of more than 50 % of its assets in investments referred to in subparagraphs c, d.1, e and f of this paragraph and in section 247, and a total of more than 25 % of its assets in the investments referred to in subparagraphs d.1 and e of this paragraph and in section 247.

Any investment made contrary to subparagraph d of the first paragraph is null of absolute nullity.

However, an insurer that, on 14 March 1991, holds investments which comply with subparagraph d of the first paragraph as it read before 15 March 1991 may continue to hold them notwithstanding subparagraphs d and d.1 of the first paragraph. It may continue to invest in a subsidiary or association other than those referred to in subparagraphs d.1 and e of the first paragraph provided that its total investment in that subsidiary or association does not exceed 4 % of its assets. In addition, such investments must be taken into account in computing the 15 % and 25 % limits prescribed in subparagraphs d.1 and h of the first paragraph.

The assets of a mutual benefit association or of an insurance fund shall be invested in accordance with the rules governing the investment of moneys belonging to other persons provided in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402; 1988, c. 64, s. 554; 1990, c. 86, s. 25.

1989-03-15

245. No insurer, other than a mutual association or a professional corporation, may

(a)  invest more than 4 % of its assets in each of the following classes: common shares, preferred shares, shares, permanent shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than 4 % of its assets for a single loan or more than 15 % of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than 4 % of its assets in a single immovable for income purposes or more than 15 % of its assets for all such immovables;

(d)  invest more than 4 % of its assets in a single subsidiary other than a subsidiary engaged in activities governed by this Act, the Deposit Insurance Act (chapter A-26), the Act respecting trust companies and savings companies (chapter S-29.01) or Title V of the Securities Act (chapter V-1.1), or more than 15 % of its assets for all such subsidiaries;

(e)  invest more than 15 % of its assets in a single subsidiary engaged in activities governed by this Act, the Deposit Insurance Act, the Act respecting trust companies and savings companies or Title V of the Securities Act;

(f)  invest more than 25 % of its assets in common shares, other than common shares of subsidiaries or hold more than 30 % of the common shares of a single corporation, except if the corporation is a subsidiary;

(g)  invest more than 15 % of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest more than 50 % of its assets in investments contemplated in subparagraphs c, d, e and f and in section 247.

The assets of a mutual benefit association or of an insurance fund shall be invested in accordance with the rules governing the investment of moneys belonging to other persons provided in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402; 1988, c. 64, s. 554.

1988-06-09

245. No insurer, other than a mutual association or a professional corporation, may

(a)  invest more than 4% of its assets in each of the following classes: common shares, preferred shares, shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than 4% of its assets for a single loan or more than 15% of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than 4% of its assets in a single immovable for income purposes or more than 15% of its assets for all such immovables;

(d)  invest more than 4% of its assets in a single subsidiary other than a subsidiary engaged in activities governed by this Act, the Deposit Insurance Act (chapter A-26), the Act respecting trust companies and savings companies (chapter S-29.01) or Title V of the Securities Act (chapter V-1.1), or more than 15% of its assets for all such subsidiaries;

(e)  invest more than 15% of its assets in a single subsidiary engaged in activities governed by this Act, the Deposit Insurance Act, the Act respecting trust companies and savings companies or Title V of the Securities Act;

(f)  invest more than 25% of its assets in common shares, other than common shares of subsidiaries or hold more than 30% of the common shares of a single corporation, except if the corporation is a subsidiary;

(g)  invest more than 15% of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest more than 50% of its assets in investments contemplated in subparagraphs c, d, e and f and in section 247.

The assets of a mutual benefit association or of an insurance fund shall be invested in accordance with the rules governing the investment of moneys belonging to other persons provided in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10; 1987, c. 95, s. 402.

1987-06-23

245. No insurer, other than a mutual association or a professional corporation, may

(a)  invest more than 4% of its assets in each of the following classes: common shares, preferred shares, shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than 4% of its assets for a single loan or more than 15% of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than 4% of its assets in a single immovable for income purposes or more than 15% of its assets for all such immovables;

(d)  invest more than 4% of its assets in a single subsidiary other than a subsidiary engaged in activities governed by this Act, the Deposit Insurance Act (chapter A-26), the Trust Companies Act (chapter C-41) or Title V of the Securities Act (chapter V-1.1), or more than 15% of its assets for all such subsidiaries;

(e)  invest more than 15% of its assets in a single subsidiary engaged in activities governed by this Act, the Deposit Insurance Act, the Trust Companies Act or Title V of the Securities Act;

(f)  invest more than 25% of its assets in common shares, other than common shares of subsidiaries or hold more than 30% of the common shares of a single corporation, except if the corporation is a subsidiary;

(g)  invest more than 15% of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest more than 50% of its assets in investments contemplated in subparagraphs c, d, e and f and in section 247.

The assets of a mutual benefit association or of an insurance fund shall be invested in accordance with the rules governing the investment of moneys belonging to other persons provided in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32; 1987, c. 54, s. 10.

1985-09-11

245. No insurer, other than a mutual association, may

(a)  invest more than four per cent of its assets in each of the following classes: common shares, preferred shares, shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than four per cent of its assets for a single loan or more than fifteen per cent of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than four per cent of its assets in a single immovable for income purposes or more than fifteen per cent of its assets for all such immovables;

(d)  invest more than four per cent of its assets in a single subsidiary other than a subsidiary engaged in activities governed by this Act, the Deposit Insurance Act (chapter A-26), the Trust Companies Act (chapter C-41) or Title V of the Securities Act (chapter V-1.1), or more than fifteen per cent of its assets for all such subsidiaries;

(e)  invest more than fifteen per cent of its assets in a single subsidiary engaged in activities governed by this Act, the Deposit Insurance Act, the Trust Companies Act or Title V of the Securities Act;

(f)  invest more than twenty-five per cent of its assets in common shares, other than common shares of subsidiaries or hold more than thirty per cent of the common shares of a single corporation, except if the corporation is a subsidiary;

(g)  invest more than fifteen per cent of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest more than fifty per cent of its assets in investments contemplated in subparagraphs c, d, e and f and in section 247.

A mutual benefit association shall invest its funds in investments that are consistent with the rules on the investment of moneys belonging to other persons set forth in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48; 1985, c. 17, s. 32.

1984-06-20

245. No insurer, other than a mutual association, may

(a)  invest more than four per cent of its assets in each of the following classes: common shares, preferred shares, shares or preferred shares, preferred equity shares or bonds and other securities of the same corporation, other than a subsidiary or the same cooperative;

(b)  invest more than four per cent of its assets for a single loan or more than fifteen per cent of its assets for the aggregate of all loans other than hypothecary loans;

(c)  invest more than four per cent of its assets in a single immovable for income purposes or more than fifteen per cent of its assets for all such immovables;

(d)  invest more than four per cent of its assets in a single subsidiary other than a subsidiary engaged in activities governed by this Act, the Deposit Insurance Act (chapter A-26), the Trust Companies Act (chapter C-41) or Title V of the Securities Act (chapter V-1.1), or more than fifteen per cent of its assets for all such subsidiaries;

(e)  invest more than fifteen per cent of its assets in a single subsidiary engaged in activities governed by this Act, the Deposit Insurance Act, the Trust Companies Act or Title V of the Securities Act;

(f)  invest more than twenty-five per cent of its assets in common shares, other than common shares of subsidiaries or hold more than thirty per cent of the common shares of a single corporation, except if the corporation is a subsidiary;

(g)  invest more than fifteen per cent of its assets in a single corporation, other than a subsidiary, or in a single cooperative in any form whatsoever;

(h)  invest more than fifty per cent of its assets in investments contemplated in subparagraphs c, d, e and f and in section 247.

A mutual association shall invest its funds in investments that are consistent with the rules on the investment of moneys belonging to other persons set forth in the Civil Code of Lower Canada.

1974, c. 70, s. 245; 1984, c. 22, s. 48.

1977-12-31

245. Any insurer may acquire and hold:

(a)  bonds or other securities issued by a public authority having as its object the operation of a public service and entitled to impose a tariff for that service;

(b)  bonds or other securities secured by the transfer to a trustee of an undertaking of Québec, any other Canadian province or Canada to pay each year sufficient subsidies to meet the interest and principal upon their respective maturities.

1974, c. 70, s. 245.