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Licensing of Insurers Regulations

made under Sections 5 and 8 of the

Insurance Act

R.S.N.S. 1989, c. 231

O.I.C. 90-629 (May 22, 1990, effective June 1, 1990), N.S. Reg. 142/90

as amended up to O.I.C. 2013-105 (March 28, 2013, effective April 1, 2013), N.S. Reg. 117/2013

 

1     These regulations may be cited as the Licensing of Insurers Regulations.

Section 1 added: O.I.C. 2002-41, N.S. Reg. 14/2002.

 

1A  (1)    The Property and Casualty Insurance Compensation Corporation and the Canadian Life and Health Insurance Compensation Corporation are designated as compensation associations.

 

       (2)    The following classes of insurance are prescribed for the purposes of Section 10 of the Act:

 

                (a)    automobile insurance;

 

                (b)    boiler and machinery insurance;

 

                (c)    hail insurance;

 

                (d)    legal expense insurance;

 

                (e)    liability insurance;

 

                (f)    property insurance;

 

                (g)    accident and sickness insurance;

 

                (h)    life insurance; and

 

               (i)    loss of employment insurance.

Clause 1A(2)(i) added: O.I.C. 2002-41, N.S. Reg. 14/2002.

 

       (3)    The Property and Casualty Insurance Compensation Corporation is designated as the compensation association for

 

                (a)    the classes of insurance prescribed in clauses (2)(a) to (f);

 

                (b)    the class of insurance prescribed in clause (2)(g), if carried on by an insurer that is also licensed to carry on a class of insurance other than a class prescribed in clause (2)(h) or (i); and

 

                (c)    the class of insurance prescribed in clause (2)(i), if carried on by an insurer

 

                         (i)     that is not also licensed to carry on a class of insurance prescribed in clause (2)(g) or (h), or

 

                         (ii)    that is licensed to carry on a class of insurance other than a class prescribed in clause (2)(g) or (h).

Subsection 1A(3) replaced: O.I.C. 2002-41, N.S. Reg. 14/2002.

 

       (4)    The Canadian Life and Health Insurance Compensation Corporation is designated as the compensation association for

 

                (a)    the class of insurance prescribed in clause (2)(h);

 

                (b)    the class of insurance prescribed in clause (2)(g), if carried on by an insurer that is

 

                         (i)     licensed to carry on only that class of insurance, or

 

                         (ii)    licensed to carry on that class of insurance and a class prescribed in clause (2)(h) or (i); and

 

                (c)    the class of insurance prescribed in clause (2)(i), if carried on by an insurer licensed to carry on a class of insurance prescribed in clause (2)(g) or (h).

Subsection 1A(4) replaced: O.I.C. 2002-41, N.S. Reg. 14/2002.

Section 1 renumbered 1A: O.I.C. 2002-41, N.S. Reg. 14/2002.

 

2     Upon application, the Superintendent may issue a license to carry on the business of insurance in the Province to any insurer or inter-insurance exchange including the following:

 

                (a)    a joint stock insurance company;

 

                (b)    a mutual insurance corporation;

 

                (c)    a cash-mutual insurance corporation;

 

                (d)    a fraternal society;

 

                (e)    a mutual benefit society;

 

                (f)    a company duly incorporated to undertake insurance contracts and not within any of the foregoing classes;

 

                (g)    a reciprocal or inter-insurance exchange; and

 

                (h)    an underwriter or syndicate of underwriters that is a member of the society known as Lloyds, incorporated by the Imperial Statute Lloyds Act, 1871.

 

3     (1)    A license shall not be issued to a joint stock insurance company not licensed before this Section comes into force, unless the company furnishes to the Superintendent satisfactory evidence that

 

                (a)    where the company is undertaking life insurance, the company has a paid-up capital stock and surplus of not less than five million dollars; and

 

                (b)    where the company is not undertaking life insurance, the company has a paid-up stock and surplus of not less than three million dollars.

 

       (2)    A license shall not be issued to an insurer mentioned in clauses (b), (c), or (f) of Section 2, other than a provincial mutual company, except upon proof that the net surplus of assets over all liabilities exceeds the amount fixed by subsection (1) for the paid-up capital stock and surplus of joint stock insurance companies, and that such net surplus of assets over all liabilities together with the contingent liability of members, if any, exceeds the amount fixed by subsection (1) for paid-up capital stock and surplus of joint stock insurance companies for the respective classes of insurance mentioned therein.

 

4     (1)    Prior to the issuance of a license to an insurer, the insurer shall file with the Superintendent

 

                (a)    a certified copy of its Act of incorporation or charter or other documents of incorporation or formation which shall include its by-laws verified in a manner satisfactory to the Superintendent;

 

                (b)    an affidavit or statutory declaration that the insurer is still in existence and legally authorized to transact business;

 

                (c)    a certified copy of its last balance sheet and auditor's report;

 

                (d)    notice of the place where the head office of the insurer is situate, if outside the Province;

 

                (e)    notice of the place where the chief agency or head office of the insurer in the Province is to be situate;

 

                (f)    a statement showing the amount of capital of the insurer and the number of shares into which it is divided, the number of shares subscribed and the amount paid thereon;

 

                (g)    a certified copy of the power of attorney to its Canadian chief agent, if any;

 

                (h)    notice of appointment of chief agent or resident manager for the Province;

 

                (i)     a statement in such form as is required by the Superintendent of the condition and affairs of the insurer on the thirty-first day of December then last preceding or up to the usual balancing day of the insurer or as the Superintendent requires; and

 

                (j)     such other information as the Superintendent requires.

 

       (2)    In the event of a change at any time being made in its Act of incorporation or charter or other documents of incorporation or formation of the insurer, the insurer shall forthwith notify the Superintendent thereof and file with the Superintendent such further certified copies, notices or powers of attorney as are necessary to evidence such change.

 

5     (1)    Fees payable by an insurer or by an inter-insurance exchange upon application for a license or any renewal thereof are set out in Schedule “A”.

 

       (2)    The total license fee or license renewal fee payable by any insurer or inter-insurance exchange shall not exceed $1932.45 per year of the license term.

Subsection 5(2) replaced: O.I.C. 2010-195, N.S. Reg. 71/2010; amended: 2013-105, N.S. Reg. 117/2013.

 

       (3)    License fees or license renewal fees of an insurer or inter-insurance exchange shall be due and payable on the anniversary of the date of incorporation or formation of the insurer or inter-insurance exchange and may be prorated with respect to the year of issuance of the initial license in such manner as the Superintendent may determine.

Subsection 5(3) amended: O.I.C. 2010-195, N.S. Reg. 71/2010.

 

6     (1)    Upon application being made for a license by an insurer incorporated or formed under the laws of the Province after the coming into force of these regulations, the insurer shall submit to the Superintendent a sworn statement setting forth the several sums of money paid in connection with its incorporation or formation and organization, together with a list of all unpaid liabilities, if any, arising out of such incorporation or formation and organization.

 

       (2)    Until a license is granted, no payment on account of expenses shall be made out of the money paid in by shareholders, except reasonable sums for the payment of clerical assistance, legal services, office rental, advertising, stationery, postage and expenses of travel.

 

       (3)    The Superintendent shall not issue a license to an insurer incorporated or formed under the laws of the Province until he is satisfied that all requirements of the Act and these regulations and of any other Act governing subscriptions of stock, payment of money by shareholders on account thereof, election of directors and other preliminaries have been complied with, and that the expenses of incorporation or formation and organization including the commission payable for the sale of the stock are reasonable.

 

7     (1)    A license to carry on the business of insurance in the Province must be in the form determined by the Superintendent and shall specify the class of insurance to be carried on by the insurer.

 

       (2)    Unless it is suspended or cancelled sooner, a license expires

 

                (a)    3 years after the date it is issued or renewed; or

 

                (b)    on a date earlier than 3 years from the date it is issued or renewed, as set by the Superintendent for a particular licence or class of licences.

 

       (3)    A license may be renewed on application to the Superintendent.

Section 7 replaced: O.I.C. 2010-195, N.S. Reg. 71/2010.


Schedule “A”


The yearly rate for license fees and license renewal fees is as set out in the following table for the class of insurance to be carried on by the insurer:


Class of Insurance

Yearly Rate for License Fee and

License Renewal Fee

1.    Accident and sickness insurance

$966.25

2.    Aircraft insurance

$386.50

3.    Automobile insurance

$644.15

4.    Boiler and machinery insurance

$386.50

5.    Credit insurance

$386.50

6.    Credit protection insurance

$386.50

7.    Fidelity insurance

$386.50

8.    Hail insurance

$386.50

9.    Legal expense insurance

$386.50

10.  Liability insurance

$644.15

11.  Life insurance

$966.25

12.  Marine insurance

$644.15

13.  Mortgage insurance

$386.50

14.  Property insurance

$644.15

15.  Surety insurance

$386.50

16.  Title insurance

$386.50

Schedule “A” replaced: O.I.C. 2013-105, N.S. Reg. 117/2013.