4 The short title of this Act is the Insurance Amendment Act (Life Loans), 2018 — Bill 20 (41st Parliament, 3rd Session)

Bill 20, 41-3

Ontario — Bills

3RD SESSION, 41ST LEGISLATURE, ONTARIO ELIZABETH II, 2018 Bill

An Act to amend the Insurance Act with respect to life loans Mr. J. MacLaren Private Member’s Bill 1st Reading March 22, 2018 2nd Reading 3rd Reading Royal Assent EXPLANATORY NOTE The Bill amends

section of the Insurance Act to provide for an exception to the current rule which prohibits any person, other than an insurer or its duly authorized agent, from trafficking or trading in life insurance policies. The prohibition does not apply to the assignment of a life insurance poli cy if the assignment is from the original policyholder or the policy is donated to a charity, if the policy has been held for at least 36 months and if other prescribed requirements are met.

The Bill provides for a 10- day cooling -off period, during which t ime the agreement for the assignment of a life insurance policy may be cancelled. The Financial Services Commission of Ontario is required to provide oversight to ensure consumer protection. Bill

An Act to amend the Insurance Act with respect to life loans Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows: 1

Section of the Insurance Act is amended by adding the following subsections: Exception, life loans (2) Subsection (1) does not apply if the following conditions are satisfied: 1. The life insurance policy, i. is held by the original policyholder or by the original policyholder and a related person within the meaning of the Income Tax Act (Canada), or ii. is donated to a charity registered under the Income Tax Act (Canada). 2. If the life insurance policy is held as described in subparagraph i, it has been held for at least 36 months from the day on which it was issued. 3.

The person or entity to whom the policy is assigned, and who in exchange lends against the policy to the original policy holder, me ets the prescribed requirements and complies with such other requirements as may be prescribed. 4. The agreement to lend against the policy is presented in the prescribed manner and form. Cooling-off period, life loans

(3) The applicable person mentioned in subparagraph i of subsection (2) may, without any reason, cancel an agreement to assign a life insurance pol icy at any time during the period starting on the date of entering into a binding agreement and ending on the day that is 10 days later. Consumer protection, life loans

(4) The Commission shall, in accordance with the regulations, provide oversight in res pect of transactions described in subsection (2) in order to ensure consumer protection. 2 Subsection 121 (1) of the Act is amended by adding the following paragraphs: 13.1 prescribing anything referred to as prescribed in paragraphs and of subsection 115 (2); 13.2 governing the Commission’s oversight under subsection 115 (4); Commencement This Act comes into force on a day to be named by proclamation of the Lieutenant Governor .

Short title The

short title of this Act is the Insurance Amendment Act (Life Loans), 2018.

Document details

Collection	Ontario — Bills
Citation	Bill 20, 41-3
Type	bill
Volume / chapter	p41 s3 bill 20 bill text 41 3 en b020 e.pdf
Language	en
Format	json
Source	PROVINCIAL
Identifier	760f5f9b3da080674c6a0390ce0601508b01dec6

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