A-32.1 - Insurers Act

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188. An authorized reciprocal union must, by a contract to which each person in the union is a party, take the measures necessary for its operation, including
(1)  determining the union’s name;
(2)  constituting the union’s organs, such as a board of directors or a meeting of persons reciprocally bound by insurance contracts, and providing for their mode of operation;
(3)  providing for the designation of a mandatary, who will be the same for all the persons in the union, to represent them and perform the acts necessary for the union’s operation, among other things;
(4)  determining rules
(a)  governing how persons may join or quit the union or be excluded from it, and
(b)  governing the dissolution of the union and the liquidation of the assets held by the mandatary;
(5)  providing for the appointment of an auditor and an actuary;
(6)  providing for the pooling of the sums necessary for the persons in the union to carry on their insurer activities and establishing a procedure for determining and collecting the assessments and the additional assessments payable by those persons;
(7)  prohibiting persons in the union from accepting, in any insurance contract to which they are a party, a risk which, if it occurred, would respectively oblige them to pay, after reinsurance, if applicable, an amount that exceeds 10% of the net value of their assets; and
(8)  providing for any other measure determined by regulation of the Authority.
In addition, the parties to the contract may designate as the union’s home regulator a competent authority other than the Authority if that other authority issues a licence to the union or grants it an authorization similar to that granted by the Authority under this Act.
2018, c. 23, s. 32018, c. 23, s. 3.
In force: 2019-06-13
188. An authorized reciprocal union must, by a contract to which each person in the union is a party, take the measures necessary for its operation, including
(1)  determining the union’s name;
(2)  constituting the union’s organs, such as a board of directors or a meeting of persons reciprocally bound by insurance contracts, and providing for their mode of operation;
(3)  providing for the designation of a mandatary, who will be the same for all the persons in the union, to represent them and perform the acts necessary for the union’s operation, among other things;
(4)  determining rules
(a)  governing how persons may join or quit the union or be excluded from it, and
(b)  governing the dissolution of the union and the liquidation of the assets held by the mandatary;
(5)  providing for the appointment of an auditor and an actuary;
(6)  providing for the pooling of the sums necessary for the persons in the union to carry on their insurer activities and establishing a procedure for determining and collecting the assessments and the additional assessments payable by those persons;
(7)  prohibiting persons in the union from accepting, in any insurance contract to which they are a party, a risk which, if it occurred, would respectively oblige them to pay, after reinsurance, if applicable, an amount that exceeds 10% of the net value of their assets; and
(8)  providing for any other measure determined by regulation of the Authority.
In addition, the parties to the contract may designate as the union’s home regulator a competent authority other than the Authority if that other authority issues a licence to the union or grants it an authorization similar to that granted by the Authority under this Act.
2018, c. 23, s. 32018, c. 23, s. 3.