Canada — Quebec Act or statute

Canada — Quebec legislation

Insurers Act, 2018

This section says the Act applies to supervision and control of insurance business and of activities of authorized insurers.

Source excerpt

Authorityaccess to recordsactuarial qualificationactuarial reportingactuarial/audit resignation disclosuresactuariesactuary appointmentactuary dismissalactuary remunerationadministrative decision-makingadministrative enforcementadministrative ordersadministrative penaltiesadministrative procedureadministrative proceedingsadministrative reviewadvancesagreementamalgamationamendment filingsannual meetingsannual reportannual reportingannual reportsannual statementannual statementsannuity capital exemption from seizureannuity payment calculationannulmentappealsapplicability exemptionsapplication conditionsapplication documentsapplication filingapplication noticeapplication of business corporations rulesapplication of statutory provisionsapplication processingapplication requirementsapplication reviewapplications for permissionarticles amendmentarticles of continuanceassessmentsasset acquisitionasset restraintasset segregationasset transferasset valuationasset-liability matchingassets and liabilitiesassociation contractsassociation governanceauditaudit committeeaudit notificationaudit/actuary declarationsaudited financial statementsauditingauditor and actuary appointmentauditorsauthority approvalauthority financial burdenauthority intervention in proceedingsauthorizationauthorization applicationauthorization exemptionsauthorization processauthorization regulationauthorization reviewauthorization revocationauthorized insurerauthorized insurersauxiliary companiesauxiliary companybank depositsbankingbeneficial ownershipbeneficiary dividendsbeneficiary notificationboard approvalboard committee compositionboard compositionboard functionsboard governanceboard meetingsboard membershipboard policiesboard reportingboard resolutionboard resolutionsbookkeepingbooks and accountsbooks and accounts inspectionborrowingbusiness authorizationbusiness corporation amalgamationbusiness corporation regulationbusiness corporationsbusiness planningby-lawsbylaws/contract provisionscancellation of articlescapital adequacycapital controlcapital maintenancecapital requirementscapital rulescapital sharingcertificate issuancecertificate of discontinuancecertificate requirementcertified copy transmissioncessation of regulationchange of namecivil proceedingsclearing and settlementclient dealingsclient documentationclient treatmentcommencement of legislationcommission paymentscommittee compositioncompany admissioncompany expulsioncompany organizationcompensation bodiescomplaint handlingcomplaint processingcomplaintscomplaints handlingcompliancecompliance programscompliance reportingcompliance verificationconciliationconfidential informationconflict of interestconsolidated articlescontestationcontested decisionscontinuancecontract cancellationcontract conditionscontract continuitycontract renewalcontract reviewcontract scopecontract suspensioncontract underwritingcontraventionscontrolcontrol acquisition notificationcontrol of a groupcorporate amalgamationcorporate authorizationcorporate capitalcorporate compliancecorporate continuancecorporate continuationcorporate controlcorporate disclosurecorporate dissolutioncorporate distributionscorporate filingcorporate filingscorporate formcorporate governancecorporate lawcorporate liabilitycorporate liquidationcorporate namecorporate namingcorporate operationcorporate organizationcorporate reclassificationcorporate recordscorporate regimecorporate registrycorporate reportingcorporate repurchasecorporate restructuringcorporate revocationcorporate structuringcost allocationcost recoverycostscourt authorizationcourt evidencecourt finescourt procedurecredit restrictionscreditor claimscreditor prioritycriminal convictionscriminal penaltiescustomer communicationsdamagesdata sharingdebt obligationsdebt recoverydebt subtractiondefence costsdefence from liabilitydefinitiondefinitionsdelegationdirector certificationdirector electiondirector electionsdirector liabilitydirector qualificationdirector removaldirector residency requirementsdirector resignationdirector/officer restrictionsdirectorsdirectorship eligibilitydisclosure of significant interest holdersdismissaldispute resolutiondissolutiondistribution of assetsdistribution of net revenuedistribution of remaining propertydiversificationdividendsdocument deliverydocument productiondue diligenceemployee benefit plansemployment conflictenforcementenrollment cancellationenterprise registerenterprise registrarenterprise registrationentity namingentrenched provisionsequity capitalethics committeeethics committee dutiesethics complianceevidence useexclusionsexemptionexpense reimbursementextension of periodfalse informationfalse or misleading informationfederationfederation by-lawsfederation constitutionfederation dissolutionfederation governancefederation membershipfederation namingfederation oversightfederation solvencyfederationsfeesfiling requirementsfinal accountingfinancial disclosurefinancial filingfinancial forecastsfinancial groupfinancial institution activitiesfinancial institutionsfinancial managementfinancial regulationfinancial remediationfinancial reportingfinancial sector regulationfinancial statementsfinancial supportfinancial transaction limitsfinancial transactionsfinesfirm registrationfitness for officefraudfund accountingfund administrationfund managementfund transfersfundinggovernance policiesgovernment determinationgovernment regulationgrantsgross income thresholdgroup insurancegroup insurance contractsguarantee fundguarantee fund repaymentguaranteeshead officehearing noticehindering officialsholder protectionhypothecindemnitiesindependent directorsinformation disclosureinformation disclosure to actuary or auditorinformation handlinginjunctionsinspectioninsuranceinsurance acquisitionsinsurance activitiesinsurance administrationinsurance association supervisioninsurance associationsinsurance auditinsurance authorizationinsurance businessinsurance business supervisioninsurance companiesinsurance company formationinsurance company governanceinsurance company organizationinsurance compensation body membershipinsurance complianceinsurance compliance programinsurance continuanceinsurance contract underwritinginsurance contractsinsurance disclosureinsurance distributioninsurance dividendsinsurance fundinsurance fund administrationinsurance fund assetsinsurance fund managementinsurance fund operationsinsurance governanceinsurance liabilityinsurance liquidationinsurance premium incomeinsurance regulationinsurance representativeinsurance sectorinsurance terminologyinsurance undertakingsinsured protectioninsuredsinsurer activitiesinsurer authorizationinsurer complianceinsurer conductinsurer contractsinsurer designationinsurer dissolution/liquidationinsurer financial positioninsurer governanceinsurer lossesinsurer reportinginsurer statusinsurer supervisioninterest on amounts owinginternal complianceinventory of contentsinvestigationinvestigationsinvestment fund designationinvestment fundsinvestment optionsinvestment policyjurisdictionjurisdiction changelegal actslegal person statuslegal personsliabilitiesliability contractingliability coverageliability insolvencylicensinglife insurancelife insurance activitieslife insurance claimsliquidationliquidator reportingliquiditylitigation authorityloansmanagement oversightmanagement practicesmarket entrymediationmeeting callingmeeting noticesmeeting proceduremeeting quorummeeting representationmeetingsmember companiesmember company contributionsmember company governancemember company meetingsmember contributionsmember governancemember meetingsmember registersmembership requirementsmerger approvalmergers and amalgamationsministerial decisionministerial noticeministerial permissionministerial reportingmisrepresentationmonetary administrative penaltiesmotor vehicle insurance policiesmutual companiesmutual companymutual company authorization revocationmutual company constitutionmutual company liquidationmutual company statusmutual insurance companymutual-interest corporationsmutual-interest regulated business corporationname replacementnegotiable instrumentsnoticenotice and observationsnotice of intention to amalgamatenotice of loss processingnotice publicationnotice requirementsnotice to authoritynotices of claimnotification dutiesnotification dutyobservationsoffence attributionoffences and penaltiesorder renewalorganization assetsorganization meetingownership control limitspaid-up sharesparticipating fund managementparticipating fund profitsparticipating policiespartnership contributionspatrimonypayment agreementspayment timingpenaltiesperiodic reportpermission applicationpersonal informationpolicy cancellationpolicy deliverypolicy dividendspolicy riderspremium-based apportionmentpremiumsprincipal establishmentprior noticeprivate act overrideprivilegeprocedural powersprocedureprofessional liability insuranceprofessional membershipprofessional misconductprofessional orderprofessional reportingprofessional secrecypromotersproperty transferproposal submissionprosecutionpublic administration costspublic disclosurepublic offeringpublic registerpublication requirementsquorumreceivershipreciprocal union governancereciprocal unionsrecognition conditionsrecord destructionrecord examinationredemptionregister updateregistrar filingregistrationregulated activitiesregulated business corporationsregulated entitiesregulated namesregulatory applicationregulatory approvalregulatory authorityregulatory authorizationregulatory authorization revocationregulatory commencementregulatory complianceregulatory enforcementregulatory feesregulatory filingregulatory information requestsregulatory limitsregulatory notificationregulatory oversightregulatory proceedingsregulatory reportingregulatory statusreinsurancereinsurer controlremaining property distributionremittancereplacement of legislationreportingreporting obligationsreporting to authorityrepresentationreservesrestricted partiesreview proceduresreview rightsrevival of federationrevocation noticerevocation of authorizationrisk managementsafety deposit boxessanctionssecuritiessecurities intermediarysecurities registersecuritysecurity entitlementsecurity interestssegregated fundssegregated investment fundsseizureself-regulatory organizationself-regulatory organization governanceself-regulatory organizationsservicesshare acquisitionshare capital reductionshare issuanceshare redemptionshare redemptionsshare repurchaseshareholder authorizationshareholder rightsshareholders' rightssharessignificant interestsolvencyspecial resolutionstatutory precedencestatutory substitutionsstay of proceedingssupervisionsuretyshipsurplus managementtemporary insurancetransaction noticetribunal proceedingstribunal reviewtrust accountsunderwritingunsecured loansvoting rightswebsite disclosurewithdrawal from federationwithdrawal rights

Jurisdiction: Canada — Quebec
Structure: 577 provisions
Official identity: Year 2018
Dates: Enacted 2018 · Source version 10 Jun 2026

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Dates: Enacted 2018 · Source version 10 Jun 2026

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“This section says the Act applies to supervision and control of insurance business and of activities of authorized insurers.”

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Enacted 2018 · Source version 10 Jun 2026. The date shown identifies this source expression and should not be treated as proof that no later change exists.
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Section 385

A federation’s name must include the words “federation of mutual companies” and an expression that is also included in the name of each member mutual company.

Section 385

Section 425

If the federation seeks redemption of shares it has acquired, the yearly redemption amount is capped at the lowest of three specified limits.

Section 425

Section 469

The Authority may ask the Tribunal for an order freezing or restricting disposal or withdrawal of property in certain investigations or insurer dissolution/liquidation situations.

Section 469

Section 512.1

The Tribunal may impose an administrative penalty when it learns that a person contravened or helped contravene the Act or its regulations, once the facts are established.

Section 512.1

Section 554

The Minister of Finance is responsible for carrying out this Act.

Section 554

Source and current-law status

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Source record from www.legisquebec.gouv.qc.ca · Enacted 2018 · Source version 10 Jun 2026

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Provisions 401–577

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Showing 177 of 577 provisions

Provision 132Offence 32Amendment 7Repeal 4

§ 385Section 385Provision

Source excerpt

A federation’s name must include the words “federation of mutual companies” and an expression that is also included in the name of each member mutual company.

385. The name of a federation must include the words “federation of mutual companies” as well as an expression to be included in the name of every member mutual company. 2018, c. 23, s. 3.

Section 385Verify source

§ 386Section 386Provision

Source excerpt

386. A federation promotes the development of its member mutual companies and supports them in their insurer activities, thereby facilitating their compliance with their obligations. For that purpose, the federation (1) defines the objectives of the financial group and coordinates its activities; (2) to the extent provided by this Act, supervises and controls the member companies and the partnerships and legal persons that are controlled by them; (3) administers a guarantee fund; and (4) provides services to the member companies and their mutual members as well as to the partnerships or legal persons belonging to the financial group. The federation also promotes the development of auxiliary companies and facilitates, where possible, their compliance with their obligations, in particular by offering them services. In addition, a federation promotes mutuality. For the purposes of this Act, (1) “member company” means a mutual company that is a member of a federation; and (2) “auxiliary company” means a legal person constituted and authorized to carry on insurer activities under the laws of a jurisdiction other than Québec and who in a manner similar to a mutual company confers voting rights on a one member, one vote basis and has been admitted as a member by a federation in the capacity of an auxiliary company. For the purposes of this Title, the members of an auxiliary company are considered mutual members. 2018, c. 23, s. 3; 2025, c. 16, s. 56.

Section 386Verify source

§ 387Section 387Provision

Source excerpt

A federation is legally a surety for member companies, but only up to the assets in the guarantee fund.

387. A federation is, by operation of law, surety for the member companies toward their insureds and toward the holders of insurance contracts that the member companies underwrite. The suretyship is limited by the assets in the guarantee fund. 2018, c. 23, s. 3.

Section 387Verify source

§ 388Section 388Provision

Source excerpt

A federation may be the holder of control of a group, except where the group carries on the same insurer activities as the federation’s mutual-company members; it may also control a reinsurer even if the reinsurer carries on those activities.

388. A federation may be the holder of control of any group, unless the group carries on the same insurer activities as the mutual companies that are members of the federation. However, a federation may be the holder of control of a reinsurer even if the reinsurer carries on such activities. 2018, c. 23, s. 3.

Section 388Verify source

§ 389Section 389Provision

Source excerpt

A federation must adopt a policy on examining complaint records for complaints filed by complainants who are clients of its authorized insurers.

389. A federation must adopt a policy on the examination of complaint records for complaints filed by complainants who are clients of the authorized insurers belonging to its financial group. 2018, c. 23, s. 3; 2025, c. 16, s. 57.

Section 389Verify source

§ 390Section 390Provision

Source excerpt

The federation must keep a register of complaint records submitted for examination.

390. The federation must also keep a register of the complaint records submitted for its examination. 2018, c. 23, s. 3.

Section 390Verify source

§ 391Section 391Provision

Source excerpt

The federation must send the complainant a notice within 10 days after receiving a complaint record.

391. Within 10 days after receiving a complaint record, the federation must send the complainant a notice stating the date of receipt and the complainant’s right under section 392 to have the record reviewed by the Authority. 2018, c. 23, s. 3.

Section 391Verify source

§ 392Section 392Provision

Source excerpt

A complainant may ask for a complaint record to be reviewed by the Authority if dissatisfied with the federation’s examination or outcome.

392. A complainant whose complaint record has been sent to the federation may, if dissatisfied with the examination carried out by the federation or its outcome, request the federation to have the record reviewed by the Authority. The federation is required to comply with the request and send the record to the Authority. 2018, c. 23, s. 3.

Section 392Verify source

§ 393Section 393Provision

Source excerpt

Sections 55 to 57 apply, with necessary modifications, to review of the record and to conciliation or mediation involving the federation.

393. Sections 55 to 57 apply, with the necessary modifications, to the review of the record or to conciliation or mediation to which the federation is party. 2018, c. 23, s. 3.

Section 393Verify source

§ 394Section 394Provision

Source excerpt

The federation must send the Authority a report, on the date set by the Authority, about the complaint record examination policy and the number and nature of complaint records registered for examination.

394. On the date set by the Authority, the federation must send it a report on the complaint record examination policy adopted in accordance with section 389 stating in particular the number of complaint records that the federation has registered in the register of complaint records submitted for its examination and their nature. The report must cover the period determined by the Authority. 2018, c. 23, s. 3.

Section 394Verify source

§ 395Section 395Provision

Source excerpt

A federation must follow sound and prudent management practices.

395. A federation must adhere to sound and prudent management practices. Such practices must, in particular, conduce to good governance and compliance with the laws governing the federation’s activities. 2018, c. 23, s. 3.

Section 395Verify source

§ 396Section 396Provision

Source excerpt

The federation must be able to show the Authority that it follows sound and prudent management practices.

396. The federation must be able to show to the Authority that it adheres to sound and prudent management practices. 2018, c. 23, s. 3.

Section 396Verify source

§ 397Section 397Provision

Source excerpt

A federation’s board must be elected under by-laws, with a majority drawn from directors who are mutual members of member companies and auxiliary companies.

397. A majority of the directors of a federation must be elected from among the directors who are mutual members of member companies and auxiliary companies. The federation’s by-laws prescribe the manner in which all members of the board of directors are to be elected. They may prescribe the maximum number of elected directors who are mutual members of auxiliary companies, which must be less than the number of directors elected from among the mutual members of the member companies. They may also provide that the general managers of the member companies and any person exercising a similar function within an auxiliary company may be elected as federation directors. However, such managers may not make up more than one-third of the federation’s board of directors. 2018, c. 23, s. 3; 2025, c. 16, s. 58.

Section 397Verify source

§ 398Section 398Provision

Source excerpt

398. The term of office of a federation director is not more than three years. 2018, c. 23, s. 3.

Section 398Verify source

§ 399Section 399Provision

Source excerpt

A federation must establish an audit committee within its board of directors.

399. A federation must establish, within its board of directors, an audit committee whose functions are the same as those, under section 103, of the audit committee of an authorized Québec insurer. 2018, c. 23, s. 3.

Section 399Verify source

§ 400Section 400Provision

Source excerpt

The general manager of a federation or member company, or a similar role in an auxiliary company, may not also serve as the federation’s president or vice-president, or as chair or vice-chair of its board.

400. The general manager of a federation or of a member company or a person exercising a similar function within an auxiliary company may not be the president or the vice-president of the federation or the chair or vice-chair of its board of directors. 2018, c. 23, s. 3; 2025, c. 16, s. 59.

Section 400Verify source

§ 401Section 401Provision

Source excerpt

Only certain mutual companies may be members of a federation, and a same federation may include mutual and auxiliary companies only if all carry on insurer activities in one insurance category.

401. Other than auxiliary companies, only mutual companies that are Québec insurers may be members of a federation. Only mutual companies and auxiliary companies that all carry on insurer activities either only in insurance of persons or only in damage insurance may be members of a same federation. 2018, c. 23, s. 3; 2025, c. 16, s. 60.

Section 401Verify source

§ 402Section 402Provision

Source excerpt

A federation’s by-laws must set admission, withdrawal, and expulsion conditions for member and auxiliary companies, including specific rules for auxiliary companies, and those conditions are subject to Authority approval.

402. A federation’s by-laws establish the conditions for the admission, withdrawal or expulsion of member companies and auxiliary companies as well as their rights and obligations. A federation’s by-laws prescribe in particular, regarding an auxiliary company, (1) a period of admission of at least five years; (2) in the event that an auxiliary company is an authorized insurer, any expression referred to in section 385 that must be included in its name; (3) an examination of its books and accounts at least once every two years; and (4) the information the federation may require of it as well as the documents that must be provided to the federation to show the Authority that, despite its admission, the federation adheres to sound and prudent management practices. The conditions, rights and obligations referred to in the first paragraph and the elements listed in the second paragraph are submitted to the Authority for approval. 2018, c. 23, s. 3; 2025, c. 16, s. 61.

Section 402Verify source

§ 403Section 403Provision

Source excerpt

A federation may admit a mutual company only if the company’s admission application is authorized by a special resolution of its mutual members, and may admit an auxiliary company only if its admission application is authorized by a two-thirds vote of the federation’s mutual members.

403. A federation may admit a mutual company only if the mutual company’s admission application is authorized by a special resolution of its mutual members. Likewise, it may admit an auxiliary company only if the auxiliary company’s admission application is authorized by the vote of two-thirds of the federation’s mutual members. 2018, c. 23, s. 3; 2025, c. 16, s. 62.

Section 403Verify source

§ 404Section 404Provision

Source excerpt

A federation may undertake, before a mutual company is constituted, to admit it as a member. Despite section 403, the mutual company becomes a member of the federation automatically when the federation is constituted.

404. A federation may give an undertaking to the promoters of a mutual company, before its constitution, to admit the mutual company as a member. Despite section 403, the mutual company is, by operation of law, a member of the federation as soon as the latter is constituted. 2018, c. 23, s. 3.

Section 404Verify source

§ 404.1Section 404.1Provision

Source excerpt

Before admitting an auxiliary company, the federation must get the Authority’s authorization, and the authorization application must be supported by specified information and documents.

404.1. Before admitting an auxiliary company, the federation must obtain the authorization of the Authority. The application for authorization must include (1) the name and address of the head office of the auxiliary company; (2) a description of its financial structure; (3) the name of its regulatory authority; and (4) the other information prescribed by regulation of the Authority. The following documents must be filed with the application for authorization: (1) a list of the auxiliary company’s directors and officers, including their names and domiciliary addresses; (2) if applicable, a copy of the auxiliary company’s audited financial statements for its most recent fiscal year ended and the financial statements it is required to file with its home regulator; (3) the financial forecasts for the auxiliary company for a three-year period; and (4) the other documents prescribed by regulation of the Authority. 2025, c. 16, s. 63.

Section 404.1Verify source

§ 404.2Section 404.2Provision

Source excerpt

The Authority may grant authorization to a federation if the stated conditions are met.

404.2. The Authority grants its authorization to a federation that meets the following conditions: (1) the conditions of admission of the auxiliary company prescribed by the federation’s by-laws are met; and (2) in the Authority’s opinion, there are no serious reasons to believe that the admission of the auxiliary company is likely to interfere with the adherence to sound and prudent management practices within the federation or to sound commercial practices by the mutual companies. 2025, c. 16, s. 63.

Section 404.2Verify source

§ 405Section 405Provision

Source excerpt

The federation must send its decision on a mutual company’s or auxiliary company’s admission application to the applicant or, if applicable, the mutual company’s promoters, and it must send a copy to the Authority.

405. The federation must send its decision on a mutual company’s or an auxiliary company’s admission application to the mutual company, the auxiliary company or, if applicable, the mutual company’s promoters. The federation must send a copy of the decision to the Authority. 2018, c. 23, s. 3; 2025, c. 16, s. 64.

Section 405Verify source

§ 405.1Section 405.1Provision

Source excerpt

405.1. Where a federation admits an auxiliary company, that company is then deemed to belong to its financial group. 2025, c. 16, s. 65.

Section 405.1Verify source

§ 406Section 406Provision

Source excerpt

A mutual company may apply to the Authority for review within 15 days after receiving the federation’s decision on its admission application.

406. A mutual company may, within 15 days after receiving the federation’s decision on its admission application, apply to the Authority for a review of the decision. The mutual company and the federation must have access to the record relating to the application for review. The Authority must give them an opportunity to submit observations. The company’s application for review suspends the federation’s decision. 2018, c. 23, s. 3.

Section 406Verify source

§ 407Section 407Provision

Source excerpt

The Authority’s decision must give reasons and be sent to the mutual company and the federation.

407. The Authority’s decision must include reasons and be sent to the mutual company and the federation. The Authority’s decision is final. 2018, c. 23, s. 3.

Section 407Verify source

§ 408Section 408Provision

Source excerpt

A mutual company that belongs to a federation may withdraw only if the Authority believes the federation will still be able to meet its obligations. The Authority decides on the withdrawal when it reviews the company’s authorization and must send the prescribed notice to the federation and the company beforehand.

408. A mutual company that is a member of a federation may withdraw from the federation only if, in the Authority’s opinion, the federation does not as a result become unable to fulfill its obligations, in particular as regards maintaining the required capital in the guarantee fund. The Authority rules on the mutual company’s withdrawal at the same time as it conducts a review, in accordance with subparagraph 6 of the first paragraph of section 146, of the authorization granted to the mutual company. Before ruling on the withdrawal, the Authority sends to the federation and the company the notice prescribed under section 166. Sections 167 and 168 apply to the contestation of the Authority’s decision, with the necessary modifications. 2018, c. 23, s. 3.

Section 408Verify source

§ 409Section 409Provision

Source excerpt

The federation must give notice at least 30 days before expelling a member company or an auxiliary company, and it may not expel an auxiliary company during the five years after admission unless the Authority requires it.

409. The federation must, at least 30 days before expelling a member company or an auxiliary company, send the company and the Authority a notice of the decision. However, the federation may not expel an auxiliary company during the five years following its admission, unless required to do so by the Authority. 2018, c. 23, s. 3; 2025, c. 16, s. 66.

Section 409Verify source

§ 410Section 410Provision

Source excerpt

410. Sections 406 and 407 apply to a federation’s decision to expel a member company, with the necessary modifications. 2018, c. 23, s. 3.

Section 410Verify source

§ 410.1Section 410.1Provision

Source excerpt

The Authority may require the federation to expel an auxiliary company in specified cases.

410.1. The Authority may require the federation to expel an auxiliary company in the following cases: (1) the auxiliary company fails to comply with the provisions of the federation’s by-laws that apply to it; (2) in the Authority’s opinion, there are serious reasons to believe that the federation is incapable of adhering to sound and prudent management practices or it is no longer in the federation’s interest to have the auxiliary company as member. 2025, c. 16, s. 67.

Section 410.1Verify source

§ 411Section 411Provision

Source excerpt

The federation’s by-laws determine how many directors the companies may designate, each designated director gets one vote, and directors representing auxiliary companies together may not hold more than 30% of the voting rights at a meeting.

411. The meeting of the member companies and auxiliary companies is composed of directors from the companies. The number of directors that the companies may designate for this purpose is determined by the federation’s by-laws. Each director so designated is entitled to only one vote. The directors who represent the auxiliary companies may not exercise together more than 30% of the voting rights at a meeting. 2018, c. 23, s. 3; 2025, c. 16, s. 68.

Section 411Verify source

§ 412Section 412Amendment

Source excerpt

The federation’s board of directors must call a special meeting when a decision needs at least two-thirds support from the member company and auxiliary company representatives present.

412. A federation’s board of directors must call a special meeting to make any decision requiring the vote of at least two-thirds of the member company and auxiliary company representatives present. Any amendment to the by-laws requires confirmation by the vote of at least two-thirds of the representatives present. 2018, c. 23, s. 3; 2025, c. 16, s. 69.

Section 412Verify source

§ 413Section 413Provision

Source excerpt

A meeting quorum cannot be less than one-third of the representatives making up the meeting of the federation’s member and auxiliary companies.

413. Quorum at a meeting may not be less than one-third of all the representatives who make up the meeting of the member companies and auxiliary companies of the federation. 2018, c. 23, s. 3; 2025, c. 16, s. 70.

Section 413Verify source

§ 414Section 414Provision

Source excerpt

One-third of the federation’s member companies and auxiliary companies may, by notice, ask the board of directors to call a special meeting.

414. One-third of the member companies and auxiliary companies of the federation may, by means of a notice, requisition the board of directors to call a special meeting for the purposes stated in the requisition. 2018, c. 23, s. 3; 2025, c. 16, s. 71.

Section 414Verify source

§ 415Section 415Provision

Source excerpt

415. A federation may require that member companies and auxiliary companies pay the assessments it considers necessary for its operation. A federation may also impose fees on a member company or on an auxiliary company that avails itself

Section 415Verify source

§ 416Section 416Provision

Source excerpt

The guarantee fund of a federation is used to provide financial support to member companies to help protect insureds and holders of insurance contracts underwritten by those companies.

416. The guarantee fund of a federation is to be used to provide financial support to its member companies in order to protect the rights of their insureds and of the holders of insurance contracts that they underwrite. The fund consists of capital made up of the contributions of the member companies and, if applicable, the remaining property from the liquidation of a member company. 2018, c. 23, s. 3.

Section 416Verify source

§ 417Section 417Provision

Source excerpt

The federation must determine the amount of capital to be maintained in the guarantee fund and inform the Authority of that amount and the reasons for it.

417. The federation determines the amount of capital that must be maintained in the guarantee fund. It informs the Authority of the amount as well as the reasons that led to that amount being determined and, if applicable, the circumstances justifying its modification. 2018, c. 23, s. 3.

Section 417Verify source

§ 418Section 418Provision

Source excerpt

The creditors of the federation have no right to the assets of the guarantee fund.

418. The creditors of the federation have no right to the assets of the guarantee fund. 2018, c. 23, s. 3.

Section 418Verify source

§ 419Section 419Provision

Source excerpt

The federation must require its member companies to pay a contribution when needed to keep the guarantee fund capital maintained.

419. The federation must require its member companies to pay a contribution whenever this is necessary to maintain the capital of the guarantee fund. 2018, c. 23, s. 3.

Section 419Verify source

§ 420Section 420Provision

Source excerpt

The federation must send each member company an annual statement with its paid-in contributions to the guarantee fund and that amount’s share of total member contributions.

420. The federation must send each member company an annual statement showing (1) the sum of the contributions the member company has paid into the capital of the guarantee fund since its admission; and (2) the proportion that that sum is of the total contributions of the member companies. 2018, c. 23, s. 3.

Section 420Verify source

§ 421Section 421Provision

Source excerpt

A resigned or expelled member company may request repayment of its contributions by written notice sent at least 90 days before the end of the guarantee fund’s fiscal year.

421. A member company resigning or expelled from the federation may, by sending a written notice at least 90 days before the end of the guarantee fund’s fiscal year, request the repayment of its contributions. The repayment corresponds to the lesser of (1) the total contributions the member company paid; and (2) the amount obtained by multiplying the surplus of the assets of the guarantee fund over its liabilities by the proportion referred to in paragraph 2 of section 420. The repayment may not be made before the following fiscal year. 2018, c. 23, s. 3.

Section 421Verify source

§ 422Section 422Provision

Source excerpt

A federation may pay rebates to its member companies from guarantee fund revenue, according to the proportion set out in section 420, paragraph 2.

422. A federation may pay rebates to its member companies out of the revenue generated by the guarantee fund, in the proportion referred to in paragraph 2 of section 420. 2018, c. 23, s. 3.

Section 422Verify source

§ 423Section 423Provision

Source excerpt

A federation may use its guarantee fund, in addition to the suretyship purpose under section 387, for loans and grants to member companies, guaranteeing repayment of member-company loans or advances, and acquiring member-company assets or shares.

423. In addition to using the guarantee fund for the purposes of the suretyship under section 387, a federation may use it to (1) make loans and grants to its member companies; (2) guarantee the repayment of an advance or loan granted to a member company; (3) acquire all or some of a member company’s assets; and (4) acquire shares of a member company. 2018, c. 23, s. 3.

Section 423Verify source

§ 424Section 424Provision

Source excerpt

The federation may, when supporting a member company, impose measures to correct its management practices.

424. The federation may, when providing support to a member company, impose measures on it to correct its management practices. 2018, c. 23, s. 3.

Section 424Verify source

§ 425Section 425Provision

Source excerpt

If the federation seeks redemption of shares it has acquired, the yearly redemption amount is capped at the lowest of three specified limits.

425. If the federation exercises the right to request the redemption of the shares that it has acquired in compliance with this division, the amount of the shares for which it requests redemption in a year must be limited to the lesser of (1) the balance of the non-redeemed shares; (2) 50% of the net profit realized by the member company in the fiscal year; and (3) the sum whose payment would decrease a member company’s capital below the amount necessary to ensure its sustainability. 2018, c. 23, s. 3.

Section 425Verify source

§ 426Section 426Provision

Source excerpt

The federation’s investment policy must be approved by its board of directors for the guarantee fund, must cover diversification and permitted investments/transactions, and must be sent to the Authority if requested.

426. An investment policy must be approved by the federation’s board of directors for the guarantee fund. The investment policy must, in particular, (1) provide for the appropriate diversification of those investments; and (2) include a description of the types of investments and other financial transactions that it authorizes and the limits applicable to those investments and transactions. The federation must send its investment policy to the Authority at the Authority’s request. 2018, c. 23, s. 3.

Section 426Verify source

§ 427Section 427Provision

Source excerpt

The federation must follow the investment policy approved by its board of directors.

427. The federation must follow the investment policy approved by its board of directors. 2018, c. 23, s. 3.

Section 427Verify source

§ 428Section 428Provision

Source excerpt

A federation may, by resolution, create and administer segregated funds, invest them for profit, make a public offering of securities to establish or increase a segregated investment fund, and issue negotiable instruments.

428. A federation may, by resolution, establish and administer funds, segregated from its other assets, to grow the sums contributed to the funds by investing them for profit. The federation may make a public offering of securities to establish or increase a segregated investment fund and may issue negotiable instruments. 2018, c. 23, s. 3.

Section 428Verify source

§ 429Section 429Provision

Source excerpt

A contribution to a segregated investment fund gives a right to share in the fund’s net revenue and capital, subject to the federation’s by-laws.

429. A contribution to a segregated investment fund confers the right, in proportion to the contribution and according to the conditions and at the intervals determined by the federation’s by-laws, to participate in the sharing of the fund’s net revenue and in its capital. That right is a claim against the federation. Such funds are each a division of the federation’s patrimony to be used for the performance of that claim, to the exclusion of any other obligation of the federation. 2018, c. 23, s. 3.

Section 429Verify source

§ 430Section 430Provision

Source excerpt

A federation may designate a controlled group as an investment fund.

430. A federation may designate any group of which it is the holder of control as an investment fund. The sole purpose of such a group is then to grow the sums contributed to it as consideration for the securities it issues by investing those sums for profit. The provisions of this Act that are applicable to a federation’s segregated investment funds, except sections 428 and 429, apply to such an investment fund, with the necessary modifications. 2018, c. 23, s. 3.

Section 430Verify source

§ 431Section 431Provision

Source excerpt

Segregated investment funds are assessed every year, and the Authority may set disclosure standards by regulation for participating members and, if applicable, certain securities holders.

431. The segregated investment funds are assessed annually. The Authority determines, by regulation, standards for financial disclosure to participating members and, if applicable, to other holders of securities issued as consideration for a contribution to such a fund. 2018, c. 23, s. 3.

Section 431Verify source

§ 432Section 432Provision

Source excerpt

A federation may do several things for member companies, including setting policies, examining books and accounts, requiring information and documents when necessary, making supervision agreements, designating insurers for reinsurance, negotiating reinsurance agreements, and acting as receiver, liquidator, or sequestrator.

432. A federation may, in particular, (1) develop policies on the carrying on by member companies of their activities; (2) examine the books and accounts of member companies; (3) whenever it considers it necessary, require member companies to provide any information and file any document; (4) enter into agreements with member companies for the supervision, administration or management of their affairs for a specified period; (5) designate the insurers with which member companies may enter into contracts of reinsurance; (6) negotiate reinsurance agreements for member companies; (7) act as receiver in accordance with Chapter III.1 of Title I of the Act respecting the regulation of the financial sector (chapter E-6.1); and (8) act as the liquidator or sequestrator of a member company. 2018, c. 23, s. 3.

Section 432Verify source

§ 433Section 433Provision

Source excerpt

The federation is alone liable for certain non-compliance by a member company, and it must ensure its financial-group entities comply with applicable prohibitions in the stated circumstances.

433. The federation is alone liable for a failure to comply for which one of its member companies is held liable under Chapter III of Title II. In addition, the federation must ensure that each group in its financial group complies with a prohibition imposed on such a company by this Act not only when each of those groups is acting alone, but also when the acts or omissions of all or some of them would have contravened the prohibition had they been done or made by only one of them. 2018, c. 23, s. 3.

Section 433Verify source

§ 434Section 434Provision

Source excerpt

A federation must ensure that auditor and actuary services are provided to its member companies.

434. A federation must see to it that the services of an auditor and an actuary are provided to its member companies. 2018, c. 23, s. 3.

Section 434Verify source

§ 435Section 435Provision

Source excerpt

Only the board of directors may authorize member companies of the federation, on terms and conditions it تعیینs, to carry on non-insurer activities or to hold control of a business corporation carrying on insurer activities.

435. Only the board of directors may authorize, on the terms and conditions that it determines, one or more member companies of the federation (1) to carry on, in accordance with the law, activities other than those of an insurer; or (2) to be the holder of control of a business corporation that carries on insurer activities. 2018, c. 23, s. 3.

Section 435Verify source

§ 436Section 436Provision

Source excerpt

A federation may register a member company as a firm for an insurance sector, if it complies with the referenced Act.

436. A federation may register a member company as a firm for an insurance sector in accordance with the Act respecting the distribution of financial products and services (chapter D-9.2). 2018, c. 23, s. 3.

Section 436Verify source

§ 437Section 437Provision

Source excerpt

A federation’s by-laws may cover member-company territory, use of section 21 of the Business Corporations Act, standards on financial or administrative matters, and the report member and auxiliary companies must prepare.

437. A federation’s by-laws may include (1) the description of the territory in which each member company and each auxiliary company that is an authorized insurer is to carry on its activities; (2) the extent to and conditions under which a member company may avail itself of section 21 of the Business Corporations Act (chapter S-31.1); (3) the standards applicable to member companies as regards any financial or administrative matter; and (4) the content and form of the report that each member company and each auxiliary company must prepare so that the federation can determine the amount of its assessments and the procedure for sending it. The description of the territory in which each company referred to in subparagraph 1 of the first paragraph is to carry on its activities must be approved by a resolution passed by at least three-quarters of the votes cast by the directors referred to in section 411 who represent those companies. 2018, c. 23, s. 3; 2025, c. 16, s. 74.

Section 437Verify source

§ 438Section 438Provision

Source excerpt

The mutual members of a member company of a federation, and third persons, may presume that the company is exercising its powers in line with the federation’s policies, by-laws, and board resolutions.

438. The mutual members of a member company of a federation and third persons may presume that the member company is exercising its powers in accordance with the federation’s policies and by-laws and the resolutions of the federation’s board of directors. 2018, c. 23, s. 3.

Section 438Verify source

§ 439Section 439Provision

Source excerpt

Member companies may pass by-laws for their own affairs by special resolution, and those by-laws may differ from the common by-laws only to the extent allowed by the common by-laws.

439. The meeting of member companies passes, by special resolution, the common by-laws that apply to all the member companies. Each member company may, by special resolution, pass by-laws that apply to its own affairs and that diverge from the common by-laws to the extent that the common by-laws allow. 2018, c. 23, s. 3.

Section 439Verify source

§ 440Section 440Provision

Source excerpt

The meeting may, by special resolution, give the federation’s board of directors the power to adopt common by-laws.

440. The meeting may, by special resolution, delegate to the federation’s board of directors the power to adopt common by-laws. 2018, c. 23, s. 3.

Section 440Verify source

§ 441Section 441Provision

Source excerpt

The federation must send the common by-laws to the Authority, and each member company that passes by-laws for its own affairs must send them to the federation.

441. The federation sends the common by-laws to the Authority. Each member company that passes by-laws applicable to its own affairs must send them to the federation, which sends them to the Authority. 2018, c. 23, s. 3.

Section 441Verify source

§ 442Section 442Provision

Source excerpt

The federation must inspect member companies at least every other year, or sooner if needed to protect insureds and policyholders.

442. The affairs of the member companies of a federation are inspected by the federation at least once every other year or whenever it considers it necessary for the protection of the insureds and of the holders of insurance contracts that the member companies underwrite. The inspection of the affairs of a member company must cover such matters as (1) its administrative structure; (2) whether it conducts its affairs in an orderly manner; (3) the effectiveness of its board of directors; (4) the availability of reliable financial information; and (5) whether the obligations imposed on member companies under this Act have been satisfied. The federation produces a report of its inspection and sends it to the Authority and to the member company’s board of directors. If the federation calls a meeting or at the request of the member company’s board of directors, the report is presented to the member company’s directors, and the federation is required to provide them with the explanations they request. 2018, c. 23, s. 3.

Section 442Verify source

§ 443Section 443Provision

Source excerpt

A federation may inspect certain member companies by agreement with the Authority.

443. A federation may, by agreement with the Authority, inspect the member companies registered as firms under the Act respecting the distribution of financial products and services (chapter D-9.2). An agreement may specify (1) the content and form of the report that the federation must submit to the Authority and the procedure for sending it; and (2) any other measure that the Authority considers appropriate. Sections 107 and 113 of that Act apply, with the necessary modifications, to inspections performed under this section. 2018, c. 23, s. 3.

Section 443Verify source

§ 444Section 444Provision

Source excerpt

After an inspection, the federation may order a special meeting of the inspected company’s mutual members.

444. The federation may, following an inspection, order that a special meeting of mutual members of the inspected company be called to communicate to them the information the federation considers relevant and propose measures for adoption. 2018, c. 23, s. 3.

Section 444Verify source

§ 445Section 445Provision

Source excerpt

A federation must keep separate books and accounts for its guarantee fund and, if applicable, for each segregated investment fund, in addition to its own books and accounts.

445. A federation must keep, in addition to its own books and accounts, separate books and accounts for its guarantee fund and, if applicable, for each of its segregated investment funds. 2018, c. 23, s. 3.

Section 445Verify source

§ 446Section 446Provision

Source excerpt

A federation must have its books and accounts audited every year.

446. A federation’s books and accounts must be audited annually. 2018, c. 23, s. 3.

Section 446Verify source

§ 447Section 447Provision

Source excerpt

447. The fiscal year of a federation’s guarantee fund and, if applicable, segregated investment funds, is that of the federation. 2018, c. 23, s. 3.

Section 447Verify source

§ 448Section 448Provision

Source excerpt

Chapter VII of Title II applies, with necessary modifications, to the federation’s auditor.

448. Chapter VII of Title II applies, with the necessary modifications, to the federation’s auditor. 2018, c. 23, s. 3.

Section 448Verify source

§ 449Section 449Provision

Source excerpt

A federation must include specified information and documents in its annual report and send a copy of the report to its member companies.

449. The annual report of a federation must include (1) the names and addresses of its directors; (2) its financial statements; (3) the financial statements of its guarantee fund and, if applicable, of its segregated investment funds; (4) a statement of each member company’s contribution to the capital of the guarantee fund; (5) the auditors’ reports; and (6) if applicable, the most recent audited annual financial statements of each auxiliary company. The federation must send a copy of its annual report to the member companies. 2018, c. 23, s. 3; 2025, c. 16, s. 75.

Section 449Verify source

§ 450Section 450Provision

Source excerpt

A federation must prepare an annual statement in the form set by the Authority, as of its latest fiscal year-end.

450. A federation must prepare, in accordance with the content and form that the Authority determines, an annual statement as at the closing date of its most recent fiscal year. The annual statement must separately show the financial positions of the federation and of the guarantee fund. The annual statement must be certified by two of the federation’s directors. The federation’s annual report and the résumé of each of the directors and officers must be filed with the annual statement, if they have not already been sent to the Authority. 2018, c. 23, s. 3.

Section 450Verify source

§ 451Section 451Provision

Source excerpt

The annual statement and the documents filed with it must be sent to the Authority on the date it sets.

451. The annual statement and documents filed with it must be sent to the Authority on the date it determines. 2018, c. 23, s. 3.

Section 451Verify source

§ 452Section 452Provision

Source excerpt

A federation may be liquidated and dissolved only by order of the Minister.

452. A federation may be liquidated then dissolved only by order of the Minister. The order to dissolve a federation entails the liquidation of its guarantee fund and, if applicable, that of its segregated investment funds. Unless the Authority is itself acting in that capacity, it must designate the liquidator of the federation and its funds. 2018, c. 23, s. 3.

Section 452Verify source

§ 453Section 453Provision

Source excerpt

The Minister may order the Authority to dissolve a federation if the Minister considers it advisable and the federation has not fixed one of the listed failures in time.

453. The Minister may, if the Minister considers it advisable, order the Authority to dissolve a federation that has not remedied one of the following failures within the specified time limit: (1) the organization meeting is not held within the time limit specified in its application for constitution; (2) fewer than five mutual companies are members of the federation; or (3) an annual meeting has not been held for two consecutive years. 2018, c. 23, s. 3; 2025, c. 16, s. 76.

Section 453Verify source

§ 454Section 454Provision

Source excerpt

If the Authority finds a federation in default, it must send a notice and publish it in its bulletin.

454. If the Authority finds that a federation is in default, the Authority must send it a notice stating (1) the default noted; (2) the possibility that the Minister may order the dissolution of the federation; and (3) the time granted to the federation to remedy the default or submit observations. The Authority publishes the notice in its bulletin. 2018, c. 23, s. 3.

Section 454Verify source

§ 455Section 455Provision

Source excerpt

If a default is not remedied by the deadline in the notice, the Authority must prepare a report explaining that fact and why the federation should or should not be dissolved, and send the report to the Minister and the federation.

455. If the default has not been remedied on the expiry of the time specified in the notice, the Authority prepares a report stating that fact and the reasons for dissolving or not dissolving the federation. Any observations from the federation are filed with the report. The report is sent to the Minister and the federation. 2018, c. 23, s. 3.

Section 455Verify source

§ 456Section 456Provision

Source excerpt

An interested person may ask the Minister to revoke the decision within three years of the dissolution. The Minister may order the Authority to revive the federation if advisable, on conditions the Minister تعیین.

456. Any interested person may, within three years of the dissolution ordered by the Minister, ask the Minister to revoke the decision. The Minister may, if the Minister considers it advisable, order the Authority to revive the federation on the conditions the Minister determines. Sections 367 to 371 of the Business Corporations Act (chapter S-31.1) apply to the revival, with the necessary modifications. 2018, c. 23, s. 3.

Section 456Verify source

§ 457Section 457Provision

Source excerpt

457. The notice of liquidation must include a statement that the liquidation of the federation entails that of its guarantee fund and, if applicable, that of its segregated investment funds. The notice must also state the address to which claims may be sent by interested persons and, if applicable, the name and address of the liquidator designated by the Authority. 2018, c. 23, s. 3.

Section 457Verify source

§ 458Section 458Provision

Source excerpt

A liquidator designated by the Authority must file a summary report of activities with the Authority within seven days after each three-month period after appointment.

458. The liquidator designated by the Authority must, within seven days after the end of every three-month period following the date of his or her appointment, make a summary report of his or her activities for that period to the Authority. The report must show the receipts and expenses of the liquidation and include a statement of the federation’s assets and liabilities, guarantee fund and, if applicable, segregated investment funds as at the end of that three-month period. 2018, c. 23, s. 3.

Section 458Verify source

§ 459Section 459Provision

Source excerpt

459. The following claims are the prior claims, by preference over other claims, and are collocated in the following order: (1) the costs and fees of the liquidation; and (2) the salaries and wages of paid federation staff members, up to

Section 459Verify source

§ 460Section 460Provision

Source excerpt

The balance of the federation’s assets, and any segregated investment funds, is shared between member companies and auxiliary companies in proportion to their contributions; the balance of the guarantee fund is shared between member companies in proportion to their contributions.

460. The balance of the federation’s assets and, if applicable, segregated investment funds is shared between the member companies and the auxiliary companies in proportion to their contribution. The balance of the guarantee fund is shared between the member companies in proportion to their contribution. 2018, c. 23, s. 3; 2025, c. 16, s. 77.

Section 460Verify source

§ 461Section 461Repeal

Source excerpt

Section 461 is repealed.

461. (Repealed). 2018, c. 23, s. 3; 2024, c. 15, s. 64.

Section 461Verify source

§ 462Section 462Provision

Source excerpt

The Authority may issue instructions to an authorized insurer or certain federations, but the instructions must be written, specific to the addressee, and preceded by notice and an opportunity to comment.

462. The Authority may establish instructions for an authorized insurer or a federation of which such an insurer is a member. Instructions must be in writing and must be specific to the addressee, but need not be published. The Authority must, before sending instructions, notify the addressee and give it an opportunity to submit observations. 2018, c. 23, s. 3.

Section 462Verify source

§ 463Section 463Provision

Source excerpt

The Authority may issue guidelines for authorized insurers, and those guidelines must be general and impersonal.

463. The Authority may establish guidelines for all authorized insurers, a single class of such insurers or a federation of which such insurers are members. Guidelines must be general and impersonal; the Authority publishes them in its bulletin after sending a copy of them to the Minister. 2018, c. 23, s. 3.

Section 463Verify source

§ 464Section 464Provision

Source excerpt

A guideline may tell addressees what measures they may adopt to satisfy their obligations under Titles II and IV; instructions tell an addressee what obligations the Authority thinks apply under those titles.

464. A guideline informs its addressees of measures that, in the Authority’s opinion, they may establish to satisfy their obligations under Titles II and IV. Instructions inform their addressee of the obligations that, in the Authority’s opinion, are incumbent on it under those titles. 2018, c. 23, s. 3.

Section 464Verify source

§ 465Section 465Provision

Source excerpt

The Authority may order an authorized insurer, its federation, or a third person acting for it to stop a course of action or take specified measures if it thinks obligations under the Act are not being performed properly and without delay.

465. The Authority may order an authorized insurer, or the federation of which it is a member, to cease a course of action or to implement specified measures if the Authority is of the opinion that the insurer or federation is failing to perform its obligations under this Act in full, properly and without delay. The Authority may, for the same reasons, issue an order against a third person that, on behalf of an authorized insurer, carries on its activities or performs its obligations. At least 15 days before issuing an order, the Authority must notify the prior notice prescribed by section 5 of the Act respecting administrative justice (chapter J-3) in writing to the contravener and, if the contravener is a third person acting on behalf of an authorized insurer, to that insurer, stating the reasons which appear to justify the order, the date on which the order is to take effect and the contravener’s right to submit observations. 2018, c. 23, s. 3; 2021, c. 34, s. 24.

Section 465Verify source

§ 466Section 466Provision

Source excerpt

The Authority’s order must state why it was issued and must be served on everyone it applies to.

466. The Authority’s order must state the reasons for which it is issued. The order must be served on all those to whom it applies. The order takes effect on the date it is served or on any later date specified in it. 2018, c. 23, s. 3; 2021, c. 34, s. 25.

Section 466Verify source

§ 467Section 467Provision

Source excerpt

467. The Authority may, without prior notice, issue a provisional order valid for up to 15 days if, in its opinion, any period of time granted to whoever the order concerns to submit observations may be detrimental. The order must include reasons and takes effect on the date it is served on whoever it concerns. The latter may, within six days after receiving the order, submit observations to the Authority. 2018, c. 23, s. 3; 2021, c. 34, s. 26.

Section 467Verify source

§ 468Section 468Amendment

Source excerpt

468. The Authority may revoke or amend an order it has issued under this Act. 2018, c. 23, s. 3.

Section 468Verify source

§ 469Section 469Amendment

Source excerpt

The Authority may ask the Tribunal for an order freezing or restricting disposal or withdrawal of property in certain investigations or insurer dissolution/liquidation situations.

469. The Authority, for the purposes or in the course of an investigation or when it is informed that an authorized insurer is voluntarily dissolving or liquidating in contravention of section 43 or intends to do so, may request the Financial Markets Administrative Tribunal (1) to order a person or group not to dispose of funds, securities or other property in the person’s or group’s possession; or (2) to order a person or group to refrain from withdrawing funds, securities or other property on deposit with or under the control or in the safekeeping of any other person or group. Such an order takes effect from the time the person or group concerned is notified of it and, unless otherwise provided, remains binding for a 12-month period; the order may be revoked or otherwise amended during that period. An order directed at an authorized self-regulatory organization may only apply to the organization’s insurance business. 2018, c. 23, s. 3.

Section 469Verify source

§ 470Section 470Provision

Source excerpt

The person or group concerned must be notified at least 15 days before a hearing on renewal of an order, and the Tribunal may renew the order if no hearing is requested or if the reasons for the original order have not been shown to have ended.

470. The person or group concerned must be notified at least 15 days before any hearing during which the Financial Markets Administrative Tribunal is to consider an application for the renewal of an order. The Tribunal may renew the order if the person or group concerned has not requested to be heard or has failed to establish that the reasons for the initial order have ceased to exist. 2018, c. 23, s. 3.

Section 470Verify source

§ 471Section 471Provision

Source excerpt

A named person or group must immediately notify the Authority if they let a third person use a safety deposit box; on the Authority’s request, their authorized representative must open the box, make a triplicate inventory, and provide copies as stated.

471. A person or group named in an order issued under section 469 who has put a safety deposit box at the disposal of a third person or has allowed a third person to use a safety deposit box must immediately notify the Authority. On the Authority’s request, the person or the group’s duly authorized representative must open the safety deposit box in the presence of an agent of the Authority, draw up an inventory of the contents in triplicate, and give one copy to the Authority and another to the person or group concerned. 2018, c. 23, s. 3.

Section 471Verify source

§ 472Section 472Provision

Source excerpt

An order naming a bank or other financial institution applies only to the agencies or branches specified.

472. An order that names a bank or another financial institution applies only to the agencies or branches specified. 2018, c. 23, s. 3.

Section 472Verify source

§ 473Section 473Amendment

Source excerpt

A person or group directly affected by an order under section 469 may ask the Tribunal for clarification, amendment, or revocation, but a written notice stating reasons must be filed and served on the Authority at least 15 days before the hearing.

473. A person or group directly affected by an order issued under section 469, if in doubt as to the application of the order to particular funds, securities or other property, may apply to the Financial Markets Administrative Tribunal for clarification; such a person or group may also apply for an amendment to or the revocation of the order. A written notice setting out the reasons for the application for amendment or revocation must be filed with the Tribunal. The notice must be served on the Authority at least 15 days before the hearing set to hear the application. 2018, c. 23, s. 3.

Section 473Verify source

§ 474Section 474Provision

Source excerpt

An order issued under section 469 may be published in the same register as the related rights, or in a register kept outside Québec if that register’s governing Act allows it.

474. An order issued under section 469 is admissible for publication in the same register as that in which rights in the funds, securities or other property covered by the order are required to be published or admissible for publication. Likewise, the order may be published in a register kept outside Québec if such orders are admissible for publication under the Act governing that register. 2018, c. 23, s. 3.

Section 474Verify source

§ 475Section 475Provision

Source excerpt

The Tribunal may order a person or group named in the order to repay the Authority’s inspection or investigation costs, in addition to any measure in the order.

475. In addition to any measure imposed in an order, the Financial Markets Administrative Tribunal may require a person or group named in the order to repay to the Authority the costs incurred in connection with the inspection or investigation that established non-compliance with the provision concerned, according to the tariff set by government regulation. 2018, c. 23, s. 3.

Section 475Verify source

§ 476Section 476Provision

Source excerpt

The Tribunal may prohibit a person from serving as a director or officer of an authorized insurer in specified cases, and may lift that prohibition if the person asks.

476. The Financial Markets Administrative Tribunal may prohibit a person from acting as a director or officer of an authorized insurer on the grounds set out in article 329 of the Civil Code or when a sanction has been imposed on the person under this Act. The prohibition imposed by the Tribunal may not exceed five years. The Tribunal may, at the request of the person concerned, lift the prohibition on such conditions as it considers appropriate. 2018, c. 23, s. 3.

Section 476Verify source

§ 477Section 477Provision

Source excerpt

The Authority may apply to a judge of the Superior Court for an injunction about any matter related to carrying out the Act.

477. The Authority may apply to a judge of the Superior Court for an injunction in respect of any matter relating to the carrying out of this Act. The application for an injunction constitutes a proceeding in itself. The procedure prescribed in the Code of Civil Procedure (chapter C-25.01) applies, except that the Authority cannot be required to give security. 2018, c. 23, s. 3.

Section 477Verify source

§ 478Section 478Provision

Source excerpt

The Authority may intervene on its own initiative and without notice in certain proceedings.

478. The Authority may, on its own initiative and without notice, intervene in any proceeding relating to a provision of this Act or the Business Corporations Act (chapter S-31.1) that is applicable to an insurance company. 2018, c. 23, s. 3.

Section 478Verify source

§ 479Section 479Provision

Source excerpt

The Authority may ask a court to cancel or suspend an insurer’s contract made contrary to the Act, and the court may order directors involved in the contract to pay damages in solidarity.

479. The Authority may apply to a court to cancel or suspend the performance of a contract entered into by an insurer in contravention of this Act if the Authority shows that the cancellation or suspension is in the interest of the holders of insurance contracts underwritten by the insurer and that, under the circumstances, that interest must prevail over the legal security of parties to the contract and of other persons whose rights and obligations would be affected by the cancellation or suspension. The cancellation or suspension may not be applied for after the end of the 10th year after the contract concerned came into effect. The court may also order that directors who are party to such a contract, who have authorized it or who have facilitated its entering into, be solidarily required to pay the authorized insurer the amount of damages awarded as compensation for the injury suffered or the sum paid by the authorized insurer because of the contract. 2018, c. 23, s. 3.

Section 479Verify source

§ 480Section 480Provision

Source excerpt

480. The Authority may require an authorized insurer or anyone who files an application under this Act to provide any document or information that is useful in assessing the applications on which the Authority or the Minister is to rule in

Section 480Verify source

§ 481Section 481Provision

Source excerpt

The Authority’s administration costs are borne by authorized insurers, with the Government setting the annual amounts and the Authority’s certificate fixing each insurer’s payable amount.

481. The costs that must be incurred by the Authority for the administration of this Act are to be borne by the authorized insurers; they are determined annually by the Government based on the forecasts provided to it by the Authority. Such costs, for each insurer, correspond to the sum of the minimum contribution set by the Government and the proportion of those costs corresponding to the proportion that the insurer’s total direct premium income for the preceding year in Québec is of the aggregate of the similar income of all the insurers for the same period. The difference noted between the forecast of the costs that must be incurred for the administration of this Act for a year and those actually incurred for the same year must be carried over to similar costs determined by the Government for the year after the difference is noted. The certificate of the Authority must definitively establish the amount payable by each insurer under this section. 2018, c. 23, s. 3.

Section 481Verify source

§ 482Section 482Provision

Source excerpt

For section 481, “total direct premium income” is defined as direct premiums minus specified dividends, rebates, or return premiums.

482. For the purposes of section 481, “total direct premium income” means (1) in insurance of persons, the total income from direct premiums paid by Québec residents, less policy dividends or rebates granted to them; and (2) in damage insurance, the total income from direct premiums paid in respect of property situated in Québec, less policy dividends or related return premiums granted to the holders of insurance contracts relating to the property. 2018, c. 23, s. 3.

Section 482Verify source

§ 483Section 483Repeal

Source excerpt

Section 483 is repealed.

483. (Repealed). 2018, c. 23, s. 3; 2026, c. 5, s. 352.

Section 483Verify source

§ 484Section 484Repeal

Source excerpt

Section 484 is repealed.

484. (Repealed). 2018, c. 23, s. 3; 2026, c. 5, s. 352.

Section 484Verify source

§ 485Section 485Provision

Source excerpt

The Authority may make regulations setting standards for authorized insurers and federations of mutual companies.

485. In addition to other regulations that it may make under this Act, the Authority may, by regulation, determine the standards applicable (1) to authorized insurers in relation to their commercial practices and their management practices; and (2) to federations of mutual companies in relation to their management practices. 2018, c. 23, s. 3.

Section 485Verify source

§ 486Section 486Amendment

Source excerpt

Draft regulations must be published, cannot be submitted for approval or made until 30 days after draft publication, and the Minister may approve or make the regulation if the Authority does not act in time.

486. A regulation made under this Act by the Authority is approved by the Minister with or without amendment. The Minister may make such a regulation if the Authority fails to do so within the time specified by the Minister. A draft of a regulation must be published in the Authority’s bulletin with the notice required under section 10 of the Regulations Act (chapter R-18.1). The draft of the regulation may not be submitted for approval and the regulation may not be made before 30 days have elapsed since the publication of the draft. A regulation under this section comes into force on the date of its publication in the Gazette officielle du Québec or on any later date specified in it. It must also be published in the Authority’s bulletin. If the regulation published in the Authority’s bulletin differs from the one published in the Gazette officielle du Québec, the latter prevails. Sections 8, 11 and 17 to 19 of the Regulations Act do not apply to a regulation of the Authority under this Act. 2018, c. 23, s. 3; 2025, c. 16, s. 161.

Section 486Verify source

§ 487Section 487Provision

Source excerpt

487. The fees payable for the formalities prescribed by regulation of the Authority or the Minister are prescribed by government regulation. 2018, c. 23, s. 3.

Section 487Verify source

§ 488Section 488Provision

Source excerpt

A person may not present a non-insurance matter, contract, or related prestation as insurance, except for an authorized insurer dealing with a suretyship contract it underwrites.

488. No one may hold out a matter or contract that is not an insurance contract or a prestation that is not related to such a contract as being insurance, except an authorized insurer in respect of a suretyship contract that it underwrites. 2018, c. 23, s. 3.

Section 488Verify source

§ 489Section 489Provision

Source excerpt

489. No one may, if not covered by the second paragraph, hold themselves out as an insurer or use a name that includes one of the following words or combinations of words: (1) “insurer” or “reinsurer”; or (2) “insurance” or “reinsurance” with “company”, “mutual company”, “corporation”, “reciprocal union” or any other word or expression indicating a juridical form. The following may hold themselves out as an insurer or use a name that includes a word or combination of words listed in the first paragraph: (1) an authorized insurer; (2) a legal person constituted under the laws of a jurisdiction other than Québec and carrying on only reinsurer activities in Québec; (3) an insurer that delivers only damage insurance policies in Québec through a firm acting through a special broker referred to in the Act respecting the distribution of financial products and services (chapter D-9.2), if the insurer does not have an establishment in Québec and does not advertise in Québec; (4) a regulated company that is not an authorized insurer, during its organization; and (5) a legal person constituted under the laws of a jurisdiction other than Québec that is authorized under those laws to carry on insurer activities and that exercises rights and performs obligations in Québec without such exercise and performance constituting insurer activities. 2018, c. 23, s. 3; 2024, c. 15, s. 65.

Section 489Verify source

§ 490Section 490Provision

Source excerpt

Some financial-group members and certain authorized insurers may not send communications to plan beneficiaries unless they say the plan’s benefit funds are not under the Authority’s supervision and control.

490. A member of a financial group that administers or establishes an uninsured employee benefit plan, offers such a plan to employees or signs employees up as members of such a plan may not address a communication to employees and other persons benefitting from the plan unless it mentions that the sums intended for the payment of the benefits provided for by the plan are not under the Authority’s supervision and control. The same is true for an authorized insurer that is not a member of a financial group. 2018, c. 23, s. 3.

Section 490Verify source

§ 491Section 491Offence

Source excerpt

This section sets monetary administrative penalties for specified insurers, organizations, and federations that fail to send required reports, notices, statements, lists, or documents, or that refuse required access or disclosure.

491. A monetary administrative penalty of $250 in the case of a natural person and $1,000 in any other case may be imposed on (1) an authorized insurer (a) that, in contravention of section 58, fails to send the Authority a report on its complaint processing and dispute resolution policy, (b) that, in contravention of section 66, fails to notify the Authority of the fact that it has started or ceased doing business with a distributor or fails to send the Authority the list of the contracts with respect to which a distributor will be dealing with clients or participants or any change to that list, (c) that, in contravention of the first paragraph of section 71, uses an insurance policy or a rider referred to in that paragraph whose form and terms have not been determined by the Authority or, in contravention of the second paragraph of that section, uses a rider that does not meet the conditions set out in that paragraph; (d) whose ethics committee, in contravention of section 107, fails to send the Authority a report on its activities, (e) that, in contravention of section 119, fails to notify the Authority of the end of the actuary’s or auditor’s term, (f) that, in contravention of section 132, fails to send the Authority an annual statement of the position of its affairs, (g) that, in contravention of section 133, fails to send the Authority the financial statements, an auditor’s or actuary’s report, or the certificate referred to in that section, or (h) that, being Lloyd’s, fails to send the Authority the list of its underwriters in Québec or, being a reciprocal union, the list of its members, or does not keep that list up to date in contravention of section 137; (2) an insurance company that, in contravention of section 225 of the Business Corporations Act (chapter S-31.1), fails to send its financial statements to a member who requests them; (3) a self-regulatory organization that, in contravention of section 370, fails to send holders of an insurance contract underwritten by the organization the annual report of its insurance fund; (4) a federation of mutual companies that (a) in contravention of section 394, fails to report to the Authority on the number of complaint records it has registered in the register of complaint records submitted for its examination and their nature, (b) in contravention of section 449, fails to send its annual report to its members, or (c) in contravention of section 451, fails to send the Authority an annual statement under section 450; or (5) an authorized insurer, the holder of control of the insurer, a member of its financial group, its actuary or its auditor if it or he or she refuses to communicate or provide access to a document or information required by the Authority for the purposes of this Act. The penalties prescribed by the first paragraph also apply if the information or documents concerned are incomplete, or are not sent before the specified time limit. 2018, c. 23, s. 3; 2021, c. 34, s. 27; 2024, c. 15, s. 66.

Section 491Verify source

§ 492Section 492Offence

Source excerpt

A $2,500 monetary administrative penalty may be imposed on specified insurers and mutual-company bodies for listed compliance failures.

492. A monetary administrative penalty of $2,500 may be imposed on (1) an authorized insurer (a) that fails to perform its obligations under an undertaking given to the Authority under section 40, 102, 145 or 155, (b) that, in contravention of section 50, fails to adopt a complaint processing policy or that, in contravention of section 82, fails to adopt an investment policy approved by its board of directors or whose ethics committee, in contravention of section 104, fails to adopt rules of ethics, (c) that, in contravention of section 50, fails to keep the register of complaint records submitted for its examination prescribed by that section, (c.1) that, in contravention of subparagraph 3 of the third paragraph of section 72.2, fails to send to the registrar of civil status a declaration under oath in accordance with the terms and conditions prescribed by the agreement between the insurer and the registrar of civil status, (d) if, in contravention of section 94, neither a director nor a committee has reported to the board of directors on the responsibility conferred on the director or committee of seeing that sound commercial practices and sound and prudent management practices are adhered to and situations contrary to such practices are detected, or (e) that, without the Authority’s authorization under section 102, has not, in contravention of section 100, established an audit committee or an ethics committee or has established one whose composition contravenes section 101; (2) an insurance company that (a) fails to perform its obligations under an undertaking given to the Authority under section 243, or (b) is bound by insurance contracts conferring rights to policy dividends on its beneficiaries without having established, in contravention of section 543, a policy approved by its board of directors for determining the dividend and the bonuses payable to the holders of such contracts; (3) a self-regulatory organization that, in contravention of section 365, fails to establish an investment policy approved by its board of directors for its insurance fund; or (4) a federation of mutual companies that (a) in contravention of section 389, fails to establish a policy on the examination of complaint records, (b) in contravention of section 390, fails to keep the register of complaint records submitted for its examination prescribed by that section, (c) in contravention of section 399, fails to establish an audit committee within its board of directors, (d) in contravention of section 400, has as its president or vice-president or as the chair or vice-chair of its board of directors its general manager or the general manager of one of its member companies or a person exercising a similar function within one of the auxiliary companies, or (e) in contravention of section 426, fails to establish an investment policy approved by its board of directors for its guarantee fund. 2018, c. 23, s. 3; 2025, c. 16, s. 78; 2025, c. 32, s. 100.

Section 492Verify source

§ 493Section 493Amendment

Source excerpt

The provision sets a monetary administrative penalty for several listed compliance failures by certain insurers, insurance companies, self-regulatory organizations, and federations of mutual companies.

493. A monetary administrative penalty of $1,000 in the case of a natural person and $5,000 in any other case may be imposed on (1) an authorized insurer (a) that holds contributed capital securities issued by a legal person or partnership, participations in a trust or a share in a co-ownership acquired in contravention of the limits prescribed by section 84 without such holdings being authorized by section 85, (b) that, in contravention of section 89, is not a member, for the classes for which it is authorized to carry on an activity, of a compensation body recognized by the Authority for those classes, (c) more than half of whose board of directors, in contravention of section 98, is not composed of persons other than its employees or employees of a group of which it is the holder of control, (d) for which no actuary or auditor, in contravention of section 115, has been charged with the functions provided for in Chapter VII of Title II or for which an actuary or auditor has been charged with those functions but does not have the qualifications required under section 116, (e) that, in contravention of any of sections 149 to 154, fails to notify the Authority of any of the operations described in section 146, sends the Authority an incomplete notice of intention or fails to comply with the time limit prescribed by section 148 for filing the notice of intention, or (f) that, in contravention of section 21, carries on insurer activities in a class not covered by the authorization it has been granted by the Authority; (2) an authorized reciprocal union that, in contravention of section 190, fails to send the Authority a contract referred to in section 188, when it is amended; (3) an insurance company (a) that has outstanding debt obligations issued in contravention of section 242 or whose movable property is charged with a hypothec or other security granted in contravention of section 243, (b) that has outstanding shares that were issued without being fully paid, in contravention of section 244 or 257, as the case may be, or (c) whose board of directors, in contravention of section 266, is not composed of a majority of directors who are resident in Québec; (4) a self-regulatory organization whose board of directors has not, in contravention of section 354, established a professional liability insurance decision-making committee or has established one whose composition of contravenes section 361 or 363; or (5) a federation of mutual companies (a) more than one-third of whose board of directors, in contravention of section 397, is made up of general managers of member companies or persons exercising a similar function within the auxiliary companies, (b) for which no auditor, in contravention of sections 115 and 448, has been charged with the functions provided for in Chapter VII of Title II or for which an auditor has been charged with those functions but does not have the qualifications required under section 116, (b.1) that, in contravention of section 410.1, fails to expel an auxiliary company from the federation, (b.2) that, in contravention of section 411, allows auxiliary companies to exercise together more than 30% of the voting rights at a meeting of the federation, (c) that, in contravention of section 417, has not determined the amount of the capital that must be maintained in its guarantee fund, (d) that fails to inspect its member companies’ affairs as required under section 442, or (e) whose books and accounts are not audited annually in contravention of section 446. 2018, c. 23, s. 3; 2024, c. 15, s. 67; 2025, c. 16, s. 79.

Section 493Verify source

§ 494Section 494Offence

Source excerpt

The Authority may impose a monetary administrative penalty on a person who does not comply with an order or other decision of the Authority.

494. A monetary administrative penalty of $2,000 in the case of a natural person and $10,000 in any other case may be imposed on anyone who fails to comply with an order or other decision of the Authority. 2018, c. 23, s. 3.

Section 494Verify source

§ 495Section 495Offence

Source excerpt

If a failure to comply that can attract a monetary administrative penalty continues for more than one day, each day counts as a new failure.

495. If a failure to comply for which a monetary administrative penalty may be imposed continues for more than one day, it constitutes a new failure for each day it continues. 2018, c. 23, s. 3.

Section 495Verify source

§ 496Section 496Offence

Source excerpt

The Minister or the Authority may make a regulation that treats non-compliance as potentially leading to a monetary administrative penalty.

496. The Minister or the Authority may, in a regulation made under this Act, specify that a failure to comply with the regulation may give rise to a monetary administrative penalty. The regulation may define the conditions for applying the penalty and set forth the amounts or the methods for determining them. The amounts may vary according to the seriousness of the failure to comply, without exceeding the maximum amounts provided for in section 494. 2018, c. 23, s. 3.

Section 496Verify source

§ 497Section 497Offence

Source excerpt

If a Division I compliance failure occurs, a notice of non-compliance may be sent to the responsible party, and the notice must say the failure may lead to a monetary administrative penalty.

497. In the event of a failure to comply referred to in Division I, a notice of non-compliance may be notified to the party responsible for the failure urging that the necessary measures be taken immediately to remedy it. Such a notice must mention that the failure may give rise to a monetary administrative penalty. 2018, c. 23, s. 3.

Section 497Verify source

§ 498Section 498Offence

Source excerpt

A monetary administrative penalty must be prescribed within two years after the failure to comply.

498. The imposition of a monetary administrative penalty is prescribed by two years from the date of the failure to comply. 2018, c. 23, s. 3.

Section 498Verify source

§ 499Section 499Offence

Source excerpt

A monetary administrative penalty cannot be imposed for a failure to comply with an Act provision if a statement of offence for the same provision, same day, and same facts has already been served.

499. The monetary administrative penalty for a failure to comply with a provision of this Act may not be imposed on the party responsible for the failure to comply if a statement of offence has already been served for a failure to comply with the same provision on the same day, based on the same facts. For the purposes of this chapter, “party responsible for a failure to comply” means the person or group on whom or which a monetary administrative penalty is imposed or may be imposed, as the case may be, for a failure to comply referred to in Division I. 2018, c. 23, s. 3.

Section 499Verify source

§ 500Section 500Amendment

Source excerpt

500. A monetary administrative penalty is imposed on the party responsible for a failure to comply by the notification of a notice of claim. The notice must state (1) the amount of the claim; (2) the reasons for it; (3) the time from which it bears interest; (4) the right, under section 501, to obtain a review of the decision to impose the penalty and the time limit for exercising that right; and (5) the right to contest the review decision before the Financial Markets Administrative Tribunal and the time limit for bringing such a proceeding. The notice must also include information on the procedure for recovery of the amount claimed. The party responsible for the failure to comply must also be informed that failure to pay the amount owing may give rise to the amendment, suspension or revocation of any authorization granted under this Act or to a refusal to grant such an authorization and, if applicable, that the facts on which the claim is founded may result in penal proceedings. Unless otherwise provided, the amount owing bears interest at the rate determined under the first paragraph of section 28 of the Tax Administration Act (chapter A-6.002), from the 31st day after notification of the notice. 2018, c. 23, s. 3.

Section 500Verify source

§ 501Section 501Offence

Source excerpt

A person responsible for a failure to comply may request in writing, within 30 days after notice of claim, a review of the decision to impose a monetary administrative penalty.

501. The party responsible for a failure to comply may apply in writing to the Authority for a review of the decision to impose a monetary administrative penalty within 30 days after notification of the notice of claim. The persons responsible for the review are designated by the Authority; they must not come under the same administrative authority as the persons responsible for imposing such penalties. 2018, c. 23, s. 3.

Section 501Verify source

§ 502Section 502Provision

Source excerpt

A review application must be handled promptly.

502. The application for review must be dealt with promptly. After giving the applicant an opportunity to submit observations and produce any documents to complete the record, the person responsible for the review renders a decision on the basis of the record, unless the person deems it necessary to proceed in some other manner. 2018, c. 23, s. 3.

Section 502Verify source

§ 503Section 503Provision

Source excerpt

A review decision must be written clearly, include reasons, be notified to the applicant, and state the applicant’s right to contest it before the Financial Markets Administrative Tribunal and the time limit.

503. The review decision must be written in clear and concise terms, with reasons given, must be notified to the applicant and must state the applicant’s right to contest the decision before the Financial Markets Administrative Tribunal and the time limit for bringing such a proceeding. If the review decision is not rendered within 30 days after receipt of the application or, if applicable, within the time granted to the applicant to submit observations or documents, the interest provided for in the fourth paragraph of section 500 on the amount owing ceases to accrue until the decision is rendered. 2018, c. 23, s. 3.

Section 503Verify source

§ 504Section 504Offence

Source excerpt

A person responsible for a failure to comply may contest a review decision confirming a monetary administrative penalty before the Financial Markets Administrative Tribunal within 60 days of notification.

504. A review decision that confirms the imposition of a monetary administrative penalty may be contested before the Financial Markets Administrative Tribunal by the party responsible for the failure to comply to which the decision pertains, within 60 days after notification of the review decision. The Tribunal may only confirm or quash a contested decision. When rendering its decision, the Tribunal may make a ruling with respect to interest accrued on the penalty while the matter was pending before it. 2018, c. 23, s. 3.

Section 504Verify source

§ 505Section 505Offence

Source excerpt

If the liable party has defaulted on payment of a monetary administrative penalty, its directors and officers are solidarily liable for payment unless they prove due care and diligence to prevent the failure.

505. If the party responsible for a failure to comply has defaulted on payment of a monetary administrative penalty, its directors and officers are solidarily liable with that party for the payment of the penalty, unless they establish that they exercised due care and diligence to prevent the failure. 2018, c. 23, s. 3.

Section 505Verify source

§ 506Section 506Offence

Source excerpt

A monetary administrative penalty is secured by a legal hypothec on the debtor’s movable and immovable property.

506. The payment of a monetary administrative penalty is secured by a legal hypothec on the debtor’s movable and immovable property. For the purposes of this division, “debtor” means the party responsible for a failure to comply that is required to pay a monetary administrative penalty and, if applicable, each of its directors and officers who are solidarily liable with that party for the payment of the penalty. 2018, c. 23, s. 3.

Section 506Verify source

§ 507Section 507Offence

Source excerpt

The debtor and the Authority may enter into a payment agreement for a monetary administrative penalty owing.

507. The debtor and the Authority may enter into a payment agreement with regard to a monetary administrative penalty owing. Such an agreement, or the payment of the amount owing, does not constitute, for the purposes of any other administrative penalty under this Act, an acknowledgement of the facts giving rise to it. 2018, c. 23, s. 3.

Section 507Verify source

§ 508Section 508Offence

Source excerpt

The Authority may issue a recovery certificate for an unpaid monetary administrative penalty or an unfulfilled payment agreement, and the certificate must identify the debtor and the debt amount.

508. If the monetary administrative penalty owing is not paid in its entirety or the payment agreement is not adhered to, the Authority may issue a recovery certificate on the expiry of the time for applying for a review of the decision to impose the penalty, on the expiry of the time for contesting the review decision before the Financial Markets Administrative Tribunal or on the expiry of 30 days after the final decision of the Tribunal confirming all or part of the decision to impose the penalty or the review decision, as applicable. However, a recovery certificate may be issued before the expiry of the time referred to in the first paragraph if the Authority is of the opinion that the debtor is attempting to evade payment. A recovery certificate must state the debtor’s name and address and the amount of the debt. 2018, c. 23, s. 3.

Section 508Verify source

§ 509Section 509Provision

Source excerpt

After a recovery certificate is issued, a refund owed by the Minister of Revenue may be withheld to pay the amount stated in the certificate.

509. Once a recovery certificate has been issued, any refund owed to a debtor by the Minister of Revenue may, in accordance with section 31 of the Tax Administration Act (chapter A-6.002), be withheld for payment of the amount due referred to in the certificate. Such withholding interrupts the prescription provided for in the Civil Code with regard to the recovery of an amount owing. 2018, c. 23, s. 3.

Section 509Verify source

§ 510Section 510Provision

Source excerpt

When a recovery certificate is filed at the office of the competent court with a copy of the final decision stating the debt amount, the decision becomes enforceable as if it were a final judgment of that court not subject to appeal.

510. On the filing of the recovery certificate at the office of the competent court, together with a copy of the final decision stating the amount of the debt, the decision becomes enforceable as if it were a final judgment of that court not subject to appeal, and has all the effects of such a judgment. 2018, c. 23, s. 3.

Section 510Verify source

§ 511Section 511Provision

Source excerpt

The debtor must pay a recovery charge if the Minister’s regulation sets the cases, conditions, and amount.

511. The debtor is required to pay a recovery charge in the cases, under the conditions and in the amount determined by regulation of the Minister. 2018, c. 23, s. 3.

Section 511Verify source

§ 512Section 512Offence

Source excerpt

The Authority must keep a public register of monetary administrative penalties.

512. The Authority keeps a register relating to monetary administrative penalties. The register must contain at least the following information: (1) the date the penalty was imposed; (2) the date and nature of the failure, and the legislative provisions under which the penalty was imposed; (3) if the penalty was imposed on a legal person, its name and the address of its head office or that of one of its establishments or of the business establishment of one of its agents; (4) if the penalty was imposed on a natural person, the person’s name, the name of the municipality in whose territory the person resides and, if the failure occurred during the ordinary course of business of the person’s enterprise, the enterprise’s name and address; (5) the amount of the penalty imposed; (6) the date of receipt of an application for review and the date and conclusions of the decision; (7) the date a proceeding is brought before the Financial Markets Administrative Tribunal and the date and conclusions of the decision rendered by the Tribunal, as soon as the Authority is made aware of the information; (8) the date a proceeding is brought against the decision rendered by the Financial Markets Administrative Tribunal, the nature of the proceeding and the date and conclusions of the decision rendered by the court concerned, as soon as the Authority is made aware of the information; and (9) any other information the Authority considers of public interest. The information contained in the register is public information as of the time the decision imposing the penalty becomes final. 2018, c. 23, s. 3.

Section 512Verify source

§ 512.1Section 512.1Offence

Source excerpt

The Tribunal may impose an administrative penalty when it learns that a person contravened or helped contravene the Act or its regulations, once the facts are established.

512.1. Where it is brought to the knowledge of the Financial Markets Administrative Tribunal that anyone has, by an act or omission, contravened or aided in the contravention of a provision of this Act or a regulation made under it, the Tribunal may, once the facts have been established, impose on that person an administrative penalty to be collected by the Authority. The amount of the penalty may in no case exceed $2,000,000 for each contravention. If a contravention continues for more than one day, it constitutes a separate contravention for each day it continues. 2025, c. 16, s. 82.

Section 512.1Verify source

§ 512.2Section 512.2Offence

Source excerpt

A person who fails or refuses to provide required information, reports, or documents, or who contravenes a provision of the Act, commits an offence and may be fined; the fine is lower for a natural person and higher for any other case.

512.2. Unless otherwise specially provided, anyone who fails or refuses to provide the information, reports or other documents required to be communicated under this Act or who contravenes a provision of this Act commits an offence and is liable to a fine of $2,000 to $150,000 in the case of a natural person and $3,000 to $200,000 in any other case. 2025, c. 16, s. 83.

Section 512.2Verify source

§ 513Section 513Offence

Source excerpt

Contravening section 488 or 490 is an offence, punishable by a fine; the fine range is higher for natural persons than for other cases.

513. Anyone who contravenes section 488 or 490 commits an offence and is liable to a fine of $2,500 to $150,000 in the case of a natural person and $3,500 to $200,000 in any other case. The secretary of an authorized insurer or the representative of an authorized reciprocal union who contravenes the second paragraph of section 123 by refusing or neglecting to provide the declaration sent to him or her by an actuary or auditor in accordance with section 122 or who destroys or falsifies the declaration commits an offence and is liable to the fine prescribed in the first paragraph. 2018, c. 23, s. 3; 2024, c. 15, s. 68; 2025, c. 16, s. 84.

Section 513Verify source

§ 514Section 514Offence

Source excerpt

514. Anyone who (1) fails to comply with a request made under section 54, (2) deals with clients in contravention of section 59, (3) dismisses an actuary or auditor otherwise than in accordance with section 121, or (4) fails to notify the Authority in accordance with section 139 or to notify it of an operation described to in subparagraph 5 or 6 of the first paragraph of section 146, in accordance with section 153 or, as the case may be, section 154, commits an offence and is liable to a fine of $3,000 to $150,000 in the case of a natural person and $7,500 to $200,000 in any other case. 2018, c. 23, s. 3; 2025, c. 16, s. 85.

Section 514Verify source

§ 515Section 515Offence

Source excerpt

Anyone who does any of the listed acts commits an offence and may be fined.

515. Anyone who (1) contravenes the capital maintenance rules prescribed by any of sections 245 to 247, 264 and 265, (2) holds themselves out as an insurer or uses a name that includes a word or combination of words listed in the first paragraph of section 489 without being permitted to do so by the second paragraph of that section, (3) carries on insurer activities without the Authority’s authorization although the authorization is required under this Act, (4) provides a document or information that they know is false or inaccurate, or access to such a document or information, to the Minister or the Authority, a member of the Minister’s or Authority’s staff or a person appointed by the Minister or Authority in the course of activities governed by this Act, or (5) hinders or attempts to hinder, in any manner, the exercise of a function by a member of the Authority’s staff or by a person appointed by the Authority for the purposes of this Act, commits an offence and is liable to a fine of $5,000 to $150,000 in the case of a natural person and $15,000 to $200,000 in any other case. 2018, c. 23, s. 3; 2025, c. 16, s. 86.

Section 515Verify source

§ 516Section 516Offence

Source excerpt

516. Anyone who (1) contravenes an order, (2) carries on insurer activities although the authorization required under this Act has been refused or revoked, or carries on insurer activities beyond what this Act authorizes if the authorization is suspended, (3) presents false or misleading information in a document intended for their clientele or provides, in any manner, such information to a client, or (4) engages or participates in or attempts to engage or participate in, even indirectly, any act, practice or course of action if they know, or ought reasonably to know, that the act, practice or course of action perpetrates a fraud on a person, commits an offence and is liable, in the case of a natural person, to a fine of $5,000 to $1,500,000 or, despite article 231 of the Code of Penal Procedure (chapter C-25.1), to a maximum term of imprisonment of 18 months, or to both the fine and imprisonment, and, in any other case, to a fine of $30,000 to $2,000,000. An authorized insurer that, in contravention of section 43, decides to dissolve or liquidates voluntarily commits an offence and is liable to the fine prescribed in the first paragraph. A director of such an insurer who gives his or her assent to the dissolution or liquidation in contravention of section 43 commits an offence and is liable to the fine and imprisonment prescribed in the first paragraph; the same is true of a liquidator who agrees to proceed with such a liquidation. 2018, c. 23, s. 3; 2025, c. 16, s. 87.

Section 516Verify source

§ 517Section 517Offence

Source excerpt

The Minister may designate which regulatory provisions are offences and set the minimum and maximum fines for them; the Government may also authorize imprisonment, or both fine and imprisonment, for a contravention.

517. Despite sections 512.2 to 516, the Minister may determine the regulatory provisions made under this Act whose contravention constitutes an offence and renders the offender liable to a fine the minimum and maximum amounts of which are set by the Minister. The Government may also provide that, despite article 231 of the Code of Penal Procedure (chapter C-25.1), a contravention renders the offender liable to a term of imprisonment, or both the fine and imprisonment. The maximum penalties under the first paragraph may vary according to the seriousness of the offence, without exceeding those prescribed in section 516. 2018, c. 23, s. 3; 2025, c. 16, s. 88.

Section 517Verify source

§ 518Section 518Offence

Source excerpt

Penalties for a second or later offence are increased: fines are doubled for a second offence, tripled for a subsequent offence, and the maximum imprisonment term is five years less a day.

518. The fines prescribed by sections 512.2 to 516 or by the regulations are doubled for a second offence and tripled for a subsequent offence. The maximum term of imprisonment is five years less a day for a second or subsequent offence. If an offender commits an offence under this Act after having previously been found guilty of any such offence and if, without regard to the amounts prescribed for a second or subsequent offence, the minimum fine to which the offender was liable for the first offence was equal to or greater than the minimum fine prescribed for the second offence, the minimum and maximum fines and, if applicable, the term of imprisonment prescribed for the second offence become, if the prosecutor so requests, those prescribed in the case of a second or subsequent offence. This section applies to prior findings of guilty pronounced in the two-year period preceding the second offence or, if the minimum fine to which the offender was liable for the prior offence is that prescribed in section 516, in the five-year period preceding the second offence. Fines for a third or subsequent offence apply if the penalty imposed for the prior offence was the penalty for a second or subsequent offence. 2018, c. 23, s. 3; 2025, c. 16, s. 88.

Section 518Verify source

§ 519Section 519Offence

Source excerpt

If a director or officer of a legal person or other group commits an offence under the Act, the fines that would apply to a natural person are doubled.

519. If an offence under this Act is committed by a director or officer of a legal person or of another group, regardless of its juridical form, the minimum and maximum fines that would apply in the case of a natural person are doubled. 2018, c. 23, s. 3.

Section 519Verify source

§ 520Section 520Offence

Source excerpt

If an offence under this Act continues for more than one day, it is treated as a separate offence for each day it continues.

520. If an offence under this Act continues for more than one day, it constitutes a separate offence for each day it continues. 2018, c. 23, s. 3.

Section 520Verify source

§ 521Section 521Offence

Source excerpt

A person who helps or induces someone else to commit an offence under this Act commits an offence and gets the same penalty as the offence committed.

521. Anyone who, by an act or an omission, helps or, by encouragement, advice, consent, authorization or order, induces another person to commit an offence under this Act commits an offence and is liable to the same penalty as that prescribed for the offence they helped or induced the person to commit. 2018, c. 23, s. 3.

Section 521Verify source

§ 522Section 522Offence

Source excerpt

In penal proceedings, proof that an offence under the Act was committed by an agent, mandatary, or employee is enough to establish that the party committed it, unless the party proves due diligence and all necessary precautions.

522. In any penal proceedings relating to an offence under this Act, proof that the offence was committed by an agent, mandatary or employee of any party is sufficient to establish that it was committed by that party, unless the party establishes that it exercised due diligence, taking all necessary precautions to prevent the offence. 2018, c. 23, s. 3.

Section 522Verify source

§ 523Section 523Offence

Source excerpt

If certain persons commit an offence under the Act, the directors of the legal person, partnership, or association are presumed to have committed it unless they prove due diligence and necessary precautions.

523. If a legal person or an agent, mandatary or employee of a legal person, of a partnership or of an association without legal personality commits an offence under this Act, the directors of the legal person, partnership or association are presumed to have committed the offence unless it is established that they exercised due diligence, taking all necessary precautions to prevent the offence. For the purposes of this section, in the case of a partnership, all partners, except special partners, are presumed to be directors of the partnership unless there is evidence to the contrary appointing one or more of them, or a third person, to manage the affairs of the partnership. 2018, c. 23, s. 3.

Section 523Verify source

§ 524Section 524Offence

Source excerpt

A judge may consider listed aggravating factors when setting a penalty, and must give reasons if imposing the minimum fine despite an aggravating factor.

524. In determining the penalty, the judge may take into account aggravating factors such as (1) the intentional, negligent or reckless nature of the offence; (2) the foreseeable character of the offence or the failure to follow recommendations or warnings to prevent it; (3) the offender’s attempts to cover up the offence or failure to try to mitigate its consequences; (4) the increase in revenues or decrease in expenses that the offender intended to obtain by committing the offence or by omitting to take measures to prevent it; and (5) the offender’s failure to take reasonable measures to prevent the commission of the offence or mitigate its consequences despite the offender’s ability to do so. A judge who, despite the presence of an aggravating factor, decides to impose the minimum fine must give reasons for the decision. 2018, c. 23, s. 3.

Section 524Verify source

§ 525Section 525Offence

Source excerpt

On the prosecutor’s application, the judge may add a further fine up to the offender’s financial benefit from the offence.

525. On an application made by the prosecutor and submitted with the statement of offence, the judge may impose on the offender, in addition to any other penalty, a further fine not exceeding the financial benefit realized by the offender as a result of the offence, even if the maximum fine has also been imposed. 2018, c. 23, s. 3.

Section 525Verify source

§ 526Section 526Provision

Source excerpt

When setting a fine above the statutory minimum or deciding when an amount must be paid, the judge may consider the offender’s inability to pay if the offender provides proof of assets and liabilities.

526. When determining a fine higher than the minimum fine prescribed by this Act, or when determining the time within which an amount must be paid, the judge may take into account the offender’s inability to pay, provided the offender furnishes proof of assets and liabilities. 2018, c. 23, s. 3.

Section 526Verify source

§ 527Section 527Offence

Source excerpt

Penal proceedings for offences under this Act must be brought within three years from when the investigation record was opened, and they cannot be started after five years from the date of the offence.

527. Penal proceedings for offences under this Act are prescribed by three years from the date the investigation record relating to the offence was opened. However, no proceedings may be instituted if more than five years have elapsed since the date of the offence. The certificate of the secretary of the Authority indicating the date on which the investigation record was opened constitutes conclusive proof of that date, in the absence of any evidence to the contrary. 2018, c. 23, s. 3.

Section 527Verify source

§ 528Section 528Offence

Source excerpt

The Authority may institute penal proceedings for offences under this Act.

528. Penal proceedings for an offence under this Act may be instituted by the Authority. 2018, c. 23, s. 3.

Section 528Verify source

§ 529Section 529Provision

Source excerpt

If the Authority takes charge of the prosecution, the court fine is remitted to the Authority.

529. The fine imposed by the court is remitted to the Authority if it has taken charge of the prosecution. 2018, c. 23, s. 3.

Section 529Verify source

§ 530Section 530Provision

Source excerpt

After the new legislation comes into force, a juridical act cannot be annulled for a reason that the new legislation no longer recognizes.

530. Juridical acts which may be annulled when the new legislation comes into force may not be annulled after that time for any reason which is no longer recognized under the new legislation. 2018, c. 23, s. 3.

Section 530Verify source

§ 531Section 531Provision

Source excerpt

Some licensed insurers became authorized insurers on 13 June 2019, and the Authority’s conditions and restrictions attach to that authorization.

531. Insurers that, on 12 June 2019, hold a licence issued under the Act respecting insurance (chapter A-32) are, by operation of law, authorized insurers from 13 June 2019. The conditions and restrictions imposed by the Authority in relation to the operations of an insurer authorized under the first paragraph become the conditions and restrictions attached to the authorization. However, if the sole purpose of the conditions or restrictions is to prevent the insurer from underwriting a new insurance contract or suretyship contract except, if applicable, to honour a right that a contract in force confers on a client or participant, the insurer holding a licence becomes an insurer whose authorization has been revoked without the revocation having become final. 2018, c. 23, s. 3.

Section 531Verify source

§ 532Section 532Provision

Source excerpt

An insurance company meeting the listed conditions is not required to establish an ethics committee.

532. Despite any provision of Chapter VI of Title II, an insurance company that meets the following conditions is not required to establish an ethics committee: (1) its authorization is revoked under the third paragraph of section 531; and (2) on 12 June 2019, the company was a funeral insurance company. 2018, c. 23, s. 3.

Section 532Verify source

§ 533Section 533Provision

Source excerpt

Section 89 does not apply to the listed insurers, and only those insurers may use the words “mutual benefit association” in their names or activities.

533. Section 89 does not apply to (1) the Sons of Scotland Benevolent Association, whose Québec business number is 1145106044; (2) the Order of United Commercial Travelers of America, whose Québec business number is 1145703782; (3) the Ukrainian National Association, Inc., whose Québec business number is 1144727709; (4) the Knights of Columbus, whose Québec business number is 1145122561; (5) the Supreme Council of the Royal Arcanum, whose Québec business number is 1148945158; (6) the Grand Orange Lodge of British America Benefit Fund, whose Québec business number is 1149026875; (7) the Independent Order of Foresters, whose Québec business number is 1145375250; (8) the Teachers’ Life Insurance Society (Fraternal), whose Québec business number is 1168335322; and (9) the Croatian Fraternal Union of America, whose Québec business number is 1145293107. Only insurers referred to in the first paragraph may use the words “mutual benefit association” in their names or in the course of their activities. 2018, c. 23, s. 3.

Section 533Verify source

§ 534Section 534Commencement

Source excerpt

Proceedings brought before the Administrative Tribunal of Québec under section 366 of the Act respecting insurance before 13 June 2019 continue before that Tribunal, unless the hearing had not started by then.

534. A proceeding brought before the Administrative Tribunal of Québec under section 366 of the Act respecting insurance (chapter A-32) prior to 13 June 2019 is continued before the Tribunal, unless the hearing has not commenced by then; in such a case, the proceeding is continued before the Financial Markets Administrative Tribunal. 2018, c. 23, s. 3.

Section 534Verify source

§ 535Section 535Provision

Source excerpt

From 13 June 2019, certain insurance companies are treated as business corporations under Title III, and mutual insurance companies and mutual insurance associations are treated as mutual companies under Title III.

535. An insurance company within the meaning of the Act respecting insurance (chapter A-32), other than a mutual insurance company, becomes a business corporation regulated by Title III on 13 June 2019. A mutual insurance company within the meaning of the Act respecting insurance becomes a mutual company regulated by Title III on that date. The same is true of a mutual insurance association within the meaning of the Act respecting insurance. For the purposes of Title III, except Chapters XII to XV, and of the other provisions of this Act that refer to Title III, from 13 June 2019, (1) the following Québec insurers are deemed to be business corporations regulated by that Title: (a) Québec insurers to which a continuance certificate has been issued under section 200.0.16 of the Insurers Act; (b) L’Alpha compagnie d’assurance inc., whose Québec business number is 1145104445; and (c) La Capitale Civil Service Insurer Inc., whose Québec business number is 1141715509; and (2) L’Assurance mutuelle des fabriques de Québec, whose Québec business number is 1142783258, is deemed to be a mutual company regulated by that Title. In case of conflict, the provisions of the Acts constituting the insurers referred to in the third paragraph prevail over the provisions of Title III and over the provisions of the Business Corporations Act (chapter S-31.1) applicable to those insurers under this Act. However, the provisions of those constituting Acts may not depart from the following provisions of that Title: Chapter VII, section 244, subdivision 3 of Division I of Chapter VIII and sections 266, 267, 269 to 273, 277 and 278. 2018, c. 23, s. 3.

Section 535Verify source

§ 536Section 536Provision

Source excerpt

The patrimony and extra-patrimonial rights and obligations of a guarantee fund legal person become those of the federation of mutual companies, and the federation takes over party status in related acts and proceedings.

536. The patrimony of a guarantee fund constituted as a legal person under the Act respecting insurance (chapter A-32) becomes, as of 13 June 2019, the guarantee fund, described in the second paragraph of section 379, of the federation of mutual companies whose members are the same. The extra-patrimonial rights and obligations of the guarantee fund constituted as a legal person become, as of that date, the extra-patrimonial rights and obligations of that federation of mutual companies. That federation becomes, for the guarantee fund described in the second paragraph of section 379, a party to any act and to any judicial or administrative proceeding to which the guarantee fund constituted as a legal person was a party. 2018, c. 23, s. 3.

Section 536Verify source

§ 537Section 537Provision

Source excerpt

The first named insured in certain pre-13 June 2019 multi-insured contracts stays a member of the resulting mutual company while the contract remains in force.

537. The first named insured in a contract designating several insureds underwritten before 13 June 2019 by a mutual insurance company governed on that date by Division III of Chapter III of Title III of the Act respecting insurance (chapter A-32) remains, while the contract is in force, a member of the mutual company resulting from the continuance provided for in the second paragraph of section 535. 2018, c. 23, s. 3.

Section 537Verify source

§ 538Section 538Provision

Source excerpt

538. An insurer’s ethics committee appointed in accordance with the Act respecting insurance (chapter A-32) becomes by operation of law the ethics committee that the insurer must appoint in accordance with this Act. 2018, c. 23, s. 3.

Section 538Verify source

§ 539Section 539Provision

Source excerpt

This section applies to certain insurance companies and their pre-13 June 2019 insurance contracts that give rights to policy dividends.

539. The provisions of this division apply to insurance companies that, before 13 June 2019, were bound by insurance contracts conferring rights to policy dividends arising from those contracts entered into before that date. Such contracts are also called “participating policies”. 2018, c. 23, s. 3.

Section 539Verify source

§ 540Section 540Provision

Source excerpt

If an insurance company has at least 100 holders of policy-dividend contracts, at least one-third of its board must be elected exclusively by those holders.

540. At least one-third of the members of the board of directors of an insurance company bound by insurance contracts conferring rights to policy dividends must be elected exclusively by the holders of such contracts as soon as there are at least 100 such holders. Such holders are entitled to vote in the election, each of them having one vote; in addition, they are entitled to attend all meetings of the company members. 2018, c. 23, s. 3.

Section 540Verify source

§ 541Section 541Substitution

Source excerpt

Certain Business Corporations Act rules apply to holders of the contracts and members of the insurance company, with specified exceptions. If a notice is sent to a holder of an insurance contract giving policy-dividend rights, the agenda must expressly mention the director election reserved to those holders. A prominent statement on premium notices or receipts may replace the meeting notice, if it includes the meeting date, time, and place.

541. Divisions I and II of Chapter VII of the Business Corporations Act (chapter S-31.1), except sections 177, 179, 180, 182, 191, 192 and 194 to 206, apply to holders of such contracts and members of the insurance company. The agenda set out in the notice of meeting under section 167 of that Act must, if the notice is sent to the holder of an insurance contract conferring rights to policy dividends, expressly mention the election of directors that must be exclusively elected by such holders. A statement in prominent and conspicuous type on the premium notices and premium receipts, specifying the date, time and place of the meetings, may be substituted for the notice of meeting that must be sent to holders of insurance contracts conferring rights to policy dividends. 2018, c. 23, s. 3.

Section 541Verify source

§ 542Section 542Provision

Source excerpt

Holders of insurance contracts with dividend rights are entitled to a share of profits set apart from that class of contract, at minimum percentages that vary with the participating fund average.

542. Holders of insurance contracts conferring rights to policy dividends are entitled to share in that portion of the profits set apart that has been distinguished as having been derived from that class of contract in a proportion of at least (1) 90% of such profits in any year in which the average of the participating fund does not exceed $250,000,000; (2) 92.5% of such profits in any year in which the average of the participating fund exceeds $250,000,000 but does not exceed $500,000,000; (3) 95% of such profits in any year in which the average of the participating fund exceeds $500,000,000 but does not exceed $1,000,000,000; and (4) 97.5% of such profits in any year in which the average of the participating fund exceeds $1,000,000,000. 2018, c. 23, s. 3.

Section 542Verify source

§ 543Section 543Provision

Source excerpt

An insurance company covered by policy-dividend contracts must create a policy for calculating dividends and bonuses; the board must approve it and consider the actuary’s opinion when distributing benefits.

543. An insurance company bound by insurance contracts conferring rights to policy dividends must establish a policy for determining the dividends and bonuses payable to the holders of such contracts. The policy must be approved by the board of directors. The board of directors may distribute any form of benefit to such holders of insurance contracts, including dividends or bonuses, in compliance with the policy established in that regard. In so doing, the board of directors must take into account the opinion given by the actuary charged with the functions provided for in Chapter VII of Title II in a report to the board of directors on the compliance of the distribution with the policy established in that regard. 2018, c. 23, s. 3.

Section 543Verify source

§ 544Section 544Provision

Source excerpt

An insurance company covered by these policy-dividend contracts may not transfer money out of its participating fund unless it has a board-approved surplus management policy in place.

544. An insurance company bound by insurance contracts conferring rights to policy dividends may not make a transfer from its participating fund to a surplus account or a retained earnings account unless it has established a participating fund surplus management policy approved by the board of directors. The policy must provide a method for calculating the surplus to be maintained in the participating fund, including for the purpose of guaranteeing the performance of the company’s obligations toward holders of insurance contracts conferring rights to policy dividends. The policy must be presented at a members’ meeting. 2018, c. 23, s. 3.

Section 544Verify source

§ 545Section 545Provision

Source excerpt

A copy of any policy made under section 543 or 544 must be sent to the Authority.

545. A copy of any policy established under section 543 or section 544 must be sent to the Authority. 2018, c. 23, s. 3.

Section 545Verify source

§ 546Section 546Provision

Source excerpt

Before a transfer from a participating fund to certain accounts, the actuary must certify the transfer by report, and the company must send that report to the Authority at least 30 days before the transfer date.

546. Before each and any transfer from the participating fund to a surplus account or a retained earnings account, the actuary charged with the functions provided for in Chapter VII of Title II must produce a report certifying that the transfer is in conformity with the participating fund surplus management policy. The company must send the actuary’s report to the Authority at least 30 days before the date of the transfer. 2018, c. 23, s. 3.

Section 546Verify source

§ 547Section 547Provision

Source excerpt

The Authority may forbid a transfer, or allow it only on conditions, when it considers that doing so is advisable for holders of insurance contracts with policy dividend rights.

547. The Authority may forbid the transfer, or allow it subject to certain conditions, if the Authority considers it advisable in the interest of the holders of insurance contracts conferring rights to policy dividends. 2018, c. 23, s. 3.

Section 547Verify source

§ 548Section 548Provision

Source excerpt

The Authority may require relevant information or documents for this division.

548. The Authority may require any relevant information or document for the purposes of this division. 2018, c. 23, s. 3.

Section 548Verify source

§ 549Section 549Provision

Source excerpt

The Authority may give written instructions about managing participating fund surpluses for certain insurance-contract companies, but it must first notify the company and allow observations.

549. The Authority may, where it considers it advisable, give companies bound by insurance contracts conferring rights to policy dividends written instructions as to the management of participating fund surpluses. Before exercising the power set out in the first paragraph, the Authority must notify the company and give it an opportunity to submit observations. 2018, c. 23, s. 3.

Section 549Verify source

§ 549.1Section 549.1Provision

Source excerpt

For certain individual life insurance contracts made before 2 June 2021, the contract is treated as capping side-account payments at 125% of the premiums payable over the term.

549.1. An individual life insurance contract entered into before 2 June 2021 that includes an option to pay sums into a side account determined by the contract is deemed to provide that the total amount of those sums may not exceed 125% of the total of the premiums payable throughout the term of the contract, including taxes, fees or other costs, and determined based on the information obtained from the insured in establishing the premiums for the purpose of entering into the contract. Where applicable, the total of the sums deposited on that date is deemed not to have exceeded that percentage. 2021, c. 15, s. 97.

Section 549.1Verify source

§ 550Section 550Provision

Source excerpt

The Authority must bear the Government’s annual administration costs for this Act, as determined by the Government.

550. The costs incurred by the Government for the administration of this Act, as determined each year by the Government, are borne by the Authority. 2018, c. 23, s. 3.

Section 550Verify source

§ 551Section 551Repeal

Source excerpt

Section 551 is repealed.

551. (Repealed). 2018, c. 23, s. 3; 2026, c. 5, s. 352.

Section 551Verify source

§ 552Section 552Provision

Source excerpt

This section says the Act replaces the Act respecting insurance (chapter A-32).

552. This Act replaces the Act respecting insurance (chapter A-32). 2018, c. 23, s. 3.

Section 552Verify source

§ 553Section 553Provision

Source excerpt

The Authority is responsible for administering this Act.

553. The Authority is responsible for the administration of this Act. 2018, c. 23, s. 3.

Section 553Verify source

§ 554Section 554Provision

Source excerpt

The Minister of Finance is responsible for carrying out this Act.

554. The Minister of Finance is responsible for the carrying out of this Act. 2018, c. 23, s. 3.

Section 554Verify source

Legislative relationships

12 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

7 instruments

an order it has issued under this Act
Section 468
Authority’s staff or by a person appointed by the Authority for the purposes of this Act
Section 515
Business Corporations Act
Sections 437, 456, 491
Chapter III of Title III of the Act
Section 537
Chapter VII of the Business Corporations Act
Section 541
Civil Code
Section 476
Finance is responsible for carrying out this Act
Section 554

N–S

3 instruments

Québec under section 366 of the Act
Section 534
Regulations Act
Section 486
Superior Court for an injunction about any matter related to carrying out the Act
Section 477

T–Z

2 instruments

Tax Administration Act
Sections 500, 509
Title I of the Act
Section 432

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10 Jun 2026 · currentEnglish

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Insurers Act, 2018

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12 referenced instruments

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