Insurance Companies Act

Marginal note:Adequacy of assets and appropriate forms of liquidity

• 608 (1) A foreign company shall maintain in Canada an adequate margin of assets over liabilities in respect of its insurance business in Canada as shown in the records it is required to maintain under section 647, and adequate and appropriate forms of liquidity, and shall comply with any regulations in relation to an adequate margin of assets over liabilities and adequate and appropriate forms of liquidity.

• Marginal note:Liabilities

  (2) For the purposes of subsection (1), the liabilities in Canada of a foreign company include the reserve included in the annual return required under subsection 665(2).

• Marginal note:Guidelines

  (3) The Superintendent may make guidelines in respect of any matter referred to in paragraph 610(1)(a).

• Marginal note:Directives

  (4) Even though a foreign company is complying with regulations made under paragraph 610(1)(a) or guidelines made under subsection (3), the Superintendent may, by order, direct the foreign company to increase the margin of its assets over its liabilities that it is required to maintain in Canada or to provide additional liquidity in the forms and the amounts that the Superintendent requires.

• Marginal note:Compliance

  (5) A foreign company shall comply with an order made under subsection (4) within the time that the Superintendent specifies in the order.