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(5) Paragraphs 441(4)(a) and (b) of the
Act are replaced by the following:
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248. Section 445 of the Act is replaced by
the following:
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No new
composite
companies
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445. The Superintendent may not make or
vary an order approving the commencement
and carrying on of business by a company if
the company would as a result be permitted to
insure both risks falling within the class of life
insurance and risks falling within any other
class of insurance other than accident and
sickness insurance, accident insurance,
personal accident insurance, sickness
insurance and loss of employment insurance.
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249. Section 447 of the Act is replaced by
the following:
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Separate
accounts
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447. A company that is authorized to insure
risks falling within the class of life insurance
and risks falling within one or more other
classes of insurance shall maintain separate
accounts in respect of each class of insurance
within which it is authorized to insure risks.
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1996, c. 6,
par. 167(1)(h)
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250. Section 454 of the Act is replaced by
the following:
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Claims against
segregated
funds
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454. A claim against a segregated fund
maintained as required by section 451 under a
policy or for an amount in respect of which the
fund is maintained has priority over any other
claim against the assets of that fund, including
the claims referred to in section 161 of the
Winding-up and Restructuring Act, except to
the extent that the payment of that other claim
is secured by a security interest in or on a
specific, identifiable asset of the segregated
fund.
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251. The portion of section 461 of the Act
before paragraph (b) is replaced by the
following:
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Payments to
shareholders
from
participating
account
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461. A company that has share capital may,
from a participating account maintained
pursuant to section 456, make a payment to its
shareholders, or transfer an amount to an
account (other than a participating
shareholder account as defined in section
83.01) from which a payment can be made to
its shareholders, if
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252. Section 462 of the Act is replaced by
the following:
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Transfers
from
participating
account
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462. The only transfers that may be made
from a participating account maintained
pursuant to section 456 are
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253. Subsection 469(2) of the Act is
amended by striking out the word ``or'' at
the end of paragraph (b), by adding the
word ``or'' at the end of paragraph (c) and
by adding the following after paragraph
(c):
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254. Subsections 474(2) and (3) of the Act
are replaced by the following:
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Exception
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(2) Paragraph (1)(a) does not apply where
the person on whose behalf the company has
undertaken to guarantee a payment or
repayment is a subsidiary of the company.
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255. Subsections 477(1) and (2) of the Act
are replaced by the following:
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Restriction on
guarantees
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477. (1) A property and casualty company
shall not guarantee on behalf of any person
other than itself the payment or repayment of
any sum of money unless the person on whose
behalf the company has undertaken to
guarantee the payment or repayment is a
subsidiary of the company and has an
unqualified obligation to reimburse the
company for the full amount of the payment or
repayment to be guaranteed.
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256. Sections 479 and 480 of the Act are
replaced by the following:
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Definition of
``cost of
borrowing''
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479. For the purposes of this section and
sections 479.1 to 487, ``cost of borrowing''
means, in respect of a loan or an advance on
the security or against the cash surrender value
of a policy made by a company,
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For those purposes, however, ``cost of
borrowing'' does not include prescribed
charges.
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Rebate of
borrowing
costs
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479.1 (1) Where a company makes a loan in
respect of which the disclosure requirements
of section 480 apply and the loan is not
secured by a mortgage on real property and is
required to be repaid either on a fixed future
date or by instalments, the company shall, if
there is a prepayment of the loan, rebate to the
borrower a portion of the charges included in
the cost of borrowing in respect of the loan.
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Exception
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(2) The charges to be rebated do not include
the interest or discount applicable to the loan.
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Regulations
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(3) The Governor in Council may make
regulations governing the rebate of charges
under subsection (1). The rebate shall be made
in accordance with those regulations.
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Disclosing
borrowing
costs - loans
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480. (1) A company shall not make a loan
to a natural person that is repayable in Canada
unless the cost of borrowing, as calculated and
expressed in accordance with section 481, and
other prescribed information have, in the
prescribed manner and at the prescribed time,
been disclosed by the company to the
borrower.
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Non- application
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(2) Subsection (1) does not apply in respect
of a loan that is of a prescribed class of loans.
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257. (1) Subparagraph 482(1)(a)(i) of the
Act is replaced by the following:
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(2) Subsection 482(1) of the Act is
amended by striking out the word ``and'' at
the end of paragraph (a) and by adding the
following after paragraph (b):
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(3) Subsection 482(2) of the Act is
replaced by the following:
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Disclosure in
credit card
applications
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(1.1) A company shall, in accordance with
the regulations, at such time and in such
manner as may be prescribed, provide
prescribed information in any application
forms or related documents that it prepares for
the issuance of credit, payment or charge cards
and provide prescribed information to any
person applying to it for a credit, payment or
charge card.
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Disclosure re
credit cards
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(2) Where a company issues or has issued
a credit, payment or charge card to a natural
person, the company shall, in addition to
disclosing the costs of borrowing in respect of
any loan obtained through the use of the card ,
disclose to the person, in accordance with the
regulations,
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Additional
disclosure re
other loans
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(3) Where a company enters into or has
entered into an arrangement, including a line
of credit, for the making of a loan in respect
of which the disclosure requirements of
section 480 apply and the loan is not a loan in
respect of which subsection (1) or (2) applies,
the company shall, in addition to disclosing
the costs of borrowing, disclose to the person
to whom the loan is made, in accordance with
the regulations,
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258. Section 483 of the Act is replaced by
the following:
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Renewal
statement
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482.1 Where a company makes a loan in
respect of which the disclosure requirements
of section 480 apply and the loan is secured by
a mortgage on real property, the company
shall disclose to the borrower, at such time and
in such manner as may be prescribed, such
information as may be prescribed respecting
the renewal of the loan.
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Disclosure in
advertising
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483. No person shall authorize the
publication, issue or appearance of any
advertisement in Canada relating to
arrangements referred to in subsection
482(3) , loans, credit cards, payment cards or
charge cards , offered to natural persons by a
company, and purporting to disclose
prescribed information about the cost of
borrowing or about any other matter unless
the advertisement contains such information
as may be required by the regulations , in such
form and manner as may be prescribed.
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259. Section 485 of the Act is replaced by
the following:
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Regulations re
borrowing
costs
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485. The Governor in Council may make
regulations
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260. Paragraph 486(1)(a) of the Act is
replaced by the following:
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