Acts and Regulations

I-12 - Insurance Act

Section 326.2
Disposition versions

Full text
Assets, waiver of assessment, Superintendent has interest
326.2(1)The assets of the Mutual Insurance Guarantee Fund may be used as directed by a board of trustees established under the agreement approved under subsection 326.1(1), with the approval of the Superintendent, for the purpose of satisfying claims by policyholders and third parties that cannot be met by the assets of an insurer who is a party to the agreement.
326.2(2)The assets of the Mutual Insurance Guarantee Fund shall
(a) be maintained at no less than a book value of two hundred thousand dollars including the value of any assessments made to restore the book value of two hundred thousand dollars, or such further amount as may be specified from time to time by the Superintendent;
(b) be maintained or increased by assessments on parties to the agreement on the basis set out in the agreement approved under subsection (1);
(c) be an authorized investment within the meaning of subsection 79(8) and the value to be included by each licensed insurer shall be proportional to its contribution to the trust and shall be subject to examination by the Superintendent in the same manner as the other assets and property of licensed insurers;
(d) be invested and valued in the same manner and be subject to the same restrictions as the assets of a provincial mutual company carrying on business on the premium note plan.
326.2(3)No assessment referred to in paragraph (2)(b) shall be paid by an insurer if its effect would be to reduce the surplus of that insurer below the minimum amount specified by the Superintendent, and such a waiver of an assessment shall not be cause for the insurer’s expulsion from the Mutual Insurance Guarantee Fund.
326.2(4)The Superintendent shall be deemed to have an interest in the Mutual Insurance Guarantee Fund as representative of all persons who may be claimants against insurers that are parties to the agreement and the trustees shall from time to time furnish the Superintendent with such information and accounts with respect to the Fund as the Superintendent may require.
1982, c.32, s.2; 1986, c.47, s.6
Mutual insurance guarantee fund
326.2(1)The assets of the Mutual Insurance Guarantee Fund may be used as directed by a board of trustees established under the agreement approved under subsection 326.1(1), with the approval of the Superintendent, for the purpose of satisfying claims by policyholders and third parties that cannot be met by the assets of an insurer who is a party to the agreement.
326.2(2)The assets of the Mutual Insurance Guarantee Fund shall
(a) be maintained at no less than a book value of two hundred thousand dollars including the value of any assessments made to restore the book value of two hundred thousand dollars, or such further amount as may be specified from time to time by the Superintendent;
(b) be maintained or increased by assessments on parties to the agreement on the basis set out in the agreement approved under subsection (1);
(c) be an authorized investment within the meaning of subsection 79(8) and the value to be included by each licensed insurer shall be proportional to its contribution to the trust and shall be subject to examination by the Superintendent in the same manner as the other assets and property of licensed insurers;
(d) be invested and valued in the same manner and be subject to the same restrictions as the assets of a provincial mutual company carrying on business on the premium note plan.
326.2(3)No assessment referred to in paragraph (2)(b) shall be paid by an insurer if its effect would be to reduce the surplus of that insurer below the minimum amount specified by the Superintendent, and such a waiver of an assessment shall not be cause for the insurer’s expulsion from the Mutual Insurance Guarantee Fund.
326.2(4)The Superintendent shall be deemed to have an interest in the Mutual Insurance Guarantee Fund as representative of all persons who may be claimants against insurers that are parties to the agreement and the trustees shall from time to time furnish the Superintendent with such information and accounts with respect to the Fund as the Superintendent may require.
1982, c.32, s.2; 1986, c.47, s.6