Manitoba Hansard — 38 5 b011e.php

38-5 b011e.php

Manitoba — Debates (Hansard)

Search the Bills

Current Session:

43 - 3 (2025-

Past Sessions:

43rd Legislature

43 - 2 (2024-2025)

43 - 1 (2023-2024)

42nd Legislature

42 - 5 (2022-2023)

42 - 4 (2021-2022)

42 - 3 (2020-2021)

42 - 2 (2019-2020)

42 - 1 (2019)

41st Legislature

41 - 4 (2018-2019)

41 - 3 (2017-2018)

41 - 2 (2016-2017)

41 - 1 (2016)

40th Legislature

40 - 5 (2015-2016)

40 - 4 (2014-2015)

40 - 3 (2013-2014)

40 - 2 (2012-2013)

40 - 1 (2011-2012)

39th Legislature

39 - 5 (2010-2011)

39 - 4 (2009-2010)

39 - 3 (2008-2009)

39 - 2 (2007-2008)

39 - 1 (2007)

38th Legislature

38 - 5 (2006-2007)

38 - 4 (2005-2006)

38 - 3 (2004-2005)

38 - 2 (2003-2004)

38 - 1 (2003)

37th Legislature

37 - 4 (2002-2003)

37 - 3 (2001-2002)

37 - 2 (2000-2001)

37 - 1 (1999-2000)

Home → Legislative Business → Bills → 38-5

Status of bills in this Session.

Fifth Session, Thirty-Eighth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.

It is not the official version. If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications .

Bill 11

THE INSURANCE AMENDMENT ACT

Explanatory Note

(Assented to )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. I40 amended

The Insurance Act is amended by this Act.

Section 1 is amended

(

a) by repealing the

definitions "aircraft insurance", "boiler and machinery insurance", "employers' liability insurance", "inland transportation insurance", "legal expense insurance", "personal property insurance", "plate glass insurance", "property damage insurance", "sprinkler leakage insurance", "theft insurance", "title insurance" and "workers compensation insurance";

(

b) by replacing the

definitions "accident insurance", "accidental death insurance", "automobile insurance", "court", "credit insurance", "disability insurance", "endowment insurance", "fire insurance", "guarantee insurance", "hail insurance", "life insurance", "livestock insurance", "marine insurance", "mutual insurance", "public liability insurance", "sickness insurance" and "weather insurance" with the following:

"accident insurance" means the class of accident insurance prescribed in the regulations; (« assurance-accidents corporels »)

"accidental death insurance" means the class of accidental death insurance prescribed in the regulations; (« assurance en cas de décès accidentel »)

"automobile insurance" means the class of automobile insurance prescribed in the regulations; (« assurance-automobile »)

"court" means the Court of Queen's Bench, except

(

a) in subsections 410(3), (6) and (7), and

(

b) where the context requires a different meaning; (« tribunal »)

"credit insurance" means the class of credit insurance prescribed in the regulations; (« assurance-crédit »)

"disability insurance" means the class of disability insurance prescribed in the regulations; (« assurance-invalidité »)

"endowment insurance" means the class of endowment insurance prescribed in the regulations; (« assurance mixte »)

"fire insurance" means the class of fire insurance prescribed in the regulations; (« assurance-incendie »)

"guarantee insurance" means the class of guarantee insurance prescribed in the regulations; (« assurance de cautionnement »)

"hail insurance" means the class of hail insurance prescribed in the regulations; (« assurance contre la grêle »)

"life insurance" means the class of life insurance prescribed in the regulations; (« assurance-vie »)

"livestock insurance" means the class of livestock insurance prescribed in the regulations; (« assurance-bétail »)

"marine insurance" means the class of marine insurance prescribed in the regulations; (« assurance maritime »)

"mutual insurance" means the class of mutual insurance prescribed in the regulations; (« assurance mutuelle »)

"public liability insurance" means the class of public liability insurance prescribed in the regulations; (« assurance responsabilité civile »)

"sickness insurance" means the class of sickness insurance prescribed in the regulations; (« assurance-maladie »)

"weather insurance" means the class of weather insurance prescribed in the regulations; (« assurance-intempéries »)

(

c) by adding the following definition:

"class" , in relation to insurance, means a class of insurance prescribed in the regulations; (« classe »)

Subsection 24(6) is repealed.

Clause 26(1)(

g) is repealed .

Subsection 27(1) is amended

(

a) in the

section heading of the French version, by striking out " Catégories " and substituting " Classes "; and

(

b) by striking out everything after " carry on " and substituting " one or more classes of insurance. "

Subsection 30(3) is amended

(

a) in the part before clause (a), by striking out " or an underwriting member of The Canadian Insurance Exchange "; and

(

b) by replacing clause (

a) with the following:

(

a) its net surplus of assets over all liabilities exceeds the paid-up capital stock required under subsection (

l) in respect of a joint stock company carrying on the same class of insurance; and

Clause 32(1)(

a) is amended by striking out " (other than a mutual benefit society) ".

The following is added after

section 37:

Suspending or cancelling a licence

37.1

The Lieutenant Governor in Council may, with or without conditions, suspend or cancel the licence of an insurer if the insurer is found guilty of an offence referred to in

section 410.

The following is added after

section 41:

SUPPLEMENTARY PROVISIONS RESPECTING CORPORATE GOVERNANCE OF INSURERS INCORPORATED IN MANITOBA

Definitions

41.1(1)

The following

definitions apply in this

section and in sections 41.2 to 41.25.

"affiliate" means an entity that is affiliated with an insurer within the meaning of subsection (2). (« groupe »)

"entity" means

(

a) a body corporate;

(

b) a trust;

(

c) a partnership;

(

d) a fund;

(

e) an unincorporated association or organization;

(

f) Her Majesty in right of Canada or a province;

(

g) an agency of Her Majesty in right of Canada or a province; or

(

h) the government of, or of a political subdivision of, a foreign country or an agency of such a government. (« entité »)

"indebtedness" includes indebtedness in respect of

(

a) commercial paper;

(

b) acceptances;

(

c) lines of credit to the extent drawn on; and

(

d) margin loans made to a director or officer of an insurer. (« dette »)

"insurer" means an insurer incorporated under The Corporations Act . (« assureur »)

"not in good standing" , in relation to a loan, means a loan in respect of which

(

a) a payment of principal or interest is 90 days or more overdue;

(

b) interest is not being accrued on the books of the lender because it is doubtful whether the principal or interest will be paid or recovered; or

(

c) the rate of interest is reduced by the lender because the borrower is financially weak. (« en souffrance »)

"significant borrower" , in relation to an insurer, means

(

a) an individual who has indebtedness for money borrowed from the insurer or from an affiliate of the insurer, other than a loan secured by a mortgage on the individual's principal residence, the total principal of which exceeds the greater of

(i) $200,000., and

(ii) 0.02% of the insurer's regulatory capital; or

(

b) an entity that has indebtedness for money borrowed from the insurer or from an affiliate of the insurer the total principal of which exceeds the greatest of

(i) $500,000.,

(ii) 0.05% of the insurer's regulatory capital, and

(iii) 25% of the value of the entity's assets. (« emprunteur important »)

"subsidiary" , in relation to an insurer, means an entity that is controlled by the insurer. (« filiale »)

Affiliated bodies

41.1(2)

An entity is affiliated with an insurer if one of them is controlled by the other or both are controlled by the same person.

Sections 41.1 to 41.25 supplementary to Corporations Act

41.2(1)

Sections 41.1 to 41.25 are supplementary to the provisions of The Corporations Act that apply to insurers.

Precedence over Corporations Act

41.2(2)

If there is a conflict between a provision of sections 41.1 to 41.25 and The Corporations Act , this Act takes precedence.

Unanimous shareholder agreements not allowed

41.3(1)

The shareholders of an insurer shall not enter into a unanimous shareholder agreement, as defined in The Corporations Act . Such an agreement is of no force and effect.

Shareholders must appoint auditor

41.3(2)

Despite

section 157 of The Corporations Act , the shareholders of an insurer shall not resolve not to appoint an auditor.

Control of a body corporate or other entity

41.4(1)

For the purposes of sections 41.1 to 41.25,

(

a) a person controls a body corporate if

(

i) securities of the body corporate to which are attached more than 50% of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person, and

(ii) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;

(

b) a person controls an unincorporated entity other than a limited partnership if

(

i) more than 50% of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person, and

(ii) the person is able to direct the business and affairs of the entity;

(

c) the general partner of a limited partnership controls the limited partnership; and

(

d) a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity.

Deemed control

41.4(2)

A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled, by the entity.

Deemed control — common ownership of securities

41.4(3)

A person is deemed to control an entity if the aggregate of

(

a) any securities of the entity that are beneficially owned by the person; and

(

b) any securities of the entity that are beneficially owned by any entity controlled by the person;

is such that, if the person and all of the entities referred to in clause (

b) that beneficially own securities of the entity were one person, that person would control the entity.

Significant interest in insurer's shares

41.5(1)

For the purposes of sections 41.1 to 41.25, a person has a significant interest in a class of an insurer's shares if the aggregate of

(

a) any shares of that class beneficially owned by the person; and

(

b) any shares of that class beneficially owned by entities controlled by the person;

exceeds 10% of all of the outstanding shares of that class of the insurer's shares.

Substantial investment in a body corporate

41.5(2)

For the purposes of sections 41.1 to 41.25, a person has a substantial investment in a body corporate where

(

a) the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person exceed 10% of the voting rights attached to all of the outstanding voting shares of the body corporate; or

(

b) the aggregate of any shares of the body corporate beneficially owned by the person and by any entities controlled by the person represents ownership of greater than 25% of the shareholders' equity of the body corporate.

Substantial investment in an unincorporated entity

41.5(3)

For the purposes of sections 41.1 to 41.25, a person has a substantial investment in an unincorporated entity where the aggregate of any ownership interests, however designated, into which the entity is divided, beneficially owned by the person and by any entities controlled by the person exceeds 25% of all of the ownership interests into which the entity is divided.

Five directors required

41.6(1)

An insurer shall have at least five directors.

Residency

41.6(2)

A majority of the directors of an insurer shall be residents of Canada.

Majority to be residents

41.6(3)

An insurer

Document details

Collection	Manitoba — Debates (Hansard)
Citation	38-5 b011e.php
Type	bill
Volume / chapter	38 5 b011e.php
Language	en
Format	html
Source	PROVINCIAL
Identifier	45953b546a6297f4f2eb7e03fcd7a07d168fe11a

Source file is stored in the law ingest library (html).