SOR/92-27719925

14

20196

22

INSURANCE COMPANIES ACTLife Companies Borrowing RegulationsRegulations Respecting the Debt Obligations of Life CompaniesP.C.1992-1032 19925

14

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to the definition total assets in subsection 2(1), subsection 473(1) and section 703 of the Insurance Companies Act*, is pleased hereby to make the annexed Regulations respecting the debt obligations of life companies, effective June 1, 1992.*S.C. 1991, c. 47Short Title

1These Regulations may be cited as the Life Companies Borrowing Regulations.

Interpretation

2In these Regulations, Act means the Insurance Companies Act. (Loi)

Prescribed Subsidiaries

3For the purposes of subsection 473(1) of the Act, a prescribed subsidiary of a life company is a subsidiary of the life company other than a subsidiary that is a financial institution that is not engaged in the insuring of risks.

Debt Obligation

4For the purposes of subsection 473(1) of the Act, debt obligation has the meaning assigned to that expression by subsection 2(1) of the Act.

Manner of Determining Total Debt Obligations

5For the purposes of subsection 473(1) of the Act and subject to subsection 473(2) of the Act, the aggregate of the total debt obligations of a life company is the aggregate of(a)the debt obligations of the life company; and(b)any debt obligations of the prescribed subsidiaries of the life company that are not held by the life company.

Total Assets

6For the purposes of subsection 473(1) of the Act, total assets, in respect of a life company, at a particular time, means the total of the assets of the life company that would be reported on the balance sheet of the life company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 331(4) of the Act, less the total of the assets, determined in the same manner, of any subsidiary of the life company that is not a prescribed subsidiary.SOR/94-67, s. 5

Prescribed Percentage of Total Assets

7For the purposes of subsection 473(1) of the Act and subject to subsection 473(2) of the Act, the prescribed percentage of the total assets of a life company is twenty per cent.