Interpretation

1. In this regulation "Act" means the Insurance (Captive Company) Act.


Sophisticated insured

2. For purposes of paragraph (b) of the definition of sophisticated insured, the amount prescribed is $500 000. Classes of insurance

3. A captive insurance company may carry on any class of insurance within the meaning of the Insurance Act except

1. surety insurance, other than reinsurance of surety insurance,
2. life, sickness, disability or personal accident insurance where the beneficiary under the policy is identified by any method, other than being within a group, and
3. insurance of motor vehicles, other than fleet insurance by a corporation.

Shareholders, equity and reserves

1. The amount of shareholders equity required by a captive insurance company before and after initial registration is $200 000.
2. The amount of reserves to be maintained by a captive insurance company after initial registration is $100 000.
3. The amounts referred to in subsections (1) and (2) shall be calculated in accordance with generally accepted accounting principles.

Registration requirements

1. full particulars of all its directors, officers and managers,
2. the name of every person owning shares in the organization of the applicant, the type and extent of ownership and the voting power exercised by that ownership,
3. a statement projecting for a period of 2 years beyond the end of the last financial year of the applicant prior to application, the contemplated premium revenue from insurance and re-insurance and forecast of the types of risk insured, distinguishing income and types by projections for each class of insurance,
4. projections in the forms of balance sheets and income statements for a period of 2 years beyond the end of the last financial year of the applicant prior to the application showing the anticipated financial position of the applicant at the end of each of those years.

Expiry of registration

Renewal of Registration

Pengins International Corp. exemption

1. Marston & Marston Canada Ltd., UMARC Resources, Inc., Marston & Marston, Inc., UMARC Townsend, Inc. and Marston Process Engineers, Inc., and
2. the officers, directors, employees, agents and independent contractors of Marston & Marston Canada Ltd., UMARC Resources, Inc., Marston & Marston, Inc., UMARC Townsend, Inc. and Marston Process Engineers, Inc., against losses incurred while acting on behalf of Marston & Marston Canada Ltd., UMARC Resources, Inc., Marston & Marston, Inc., UMARC Townsend, Inc. and Marston Process Engineers, Inc. respectively.

Exemption

1. Section 5(2) of the Act does not apply to a pure captive insurance company in respect of its insuring, under a contract of reinsurance, another insurer against all or part of the risk incurred by that other insurer arising out of a contract under which that other insurer undertakes one or more of the classes of insurance prescribed under Section 5 (2) of the Act, but not any other class of insurance, and does so only for the purpose of insuring
   1. the parent of the pure captive insurance company,
   2. any affiliated corporation of that parent, or
   3. all or any of the officers, directors, employees, agents and independent contractors of the pure captive insurance company, the parent of the pure captive insurance company or any affiliated corporation of that parent, against losses incurred while acting on behalf of all or any of that pure captive company, parent or affiliated corporation.
2. Section 5 (3) of the Act does not apply to an association captive insurance company in respect of its insuring, under a contract of reinsurance, another insurer against all or part of the risk incurred by that other insurer arising out of a contract under which that other insurer undertakes one or more of the classes of insurance prescribed under Section 5 (3) of the Act, but not any other class of insurance, and does so only for the purpose of insuring
   1. the member organizations of the association captive insurance company's association,
   2. any affiliated corporation of those member organizations, or
   3. all or any of the officers, directors, employees, agents and independent contractors of the association captive insurance company, the member organizations of the association captive insurance company or any affiliated corporation of those member organizations, against losses incurred while acting on behalf of all or any of that association captive company, those member organizations or that affiliated corporation.
3. Section 5 (4) of the Act does not apply to a sophisticated insured captive insurance company in respect of its insuring, under a contract of reinsurance, another insurer against all or part of the risk incurred by that other insurer arising out of a contract under which that other insurer undertakes one or more of the classes of insurance prescribed under Section 5(4) of the Act, but not any other class of insurance, and does so only for the purpose of insuring
   1. the sophisticated insureds that comprise the sophisticated insured captive insurance company's sophisticated insured group,
   2. any affiliated corporation of those sophisticated insureds, or
   3. all or any of the officers, directors, employees, agents and independent contractors of the sophisticated insured captive insurance company, the sophisticated insureds that comprise the sophisticated insured captive insurance company's sophisticated insured group or any affiliated corporation of those sophisticated insureds, against losses incurred while acting on behalf of all or any of that sophisticated insured captive insurance company, those sophisticated insureds or those affiliated corporations.

Fees

1. Fee for application for registration under the Act is $500.
2. The fee for registration under the Act is $2 500.
3. The fees for renewal of a registration under the Act is $2 500.

Information

1. The superintendent may, at any time, require information from a captive insurance company concerning the person who manages the company, including, without limiting the generality of the foregoing,
   1. the conduct of that person¡¯s business with respect to the management of the captive insurance company, and
   2. if that person is a corporation, particulars of its directors and officers.
2. A captive insurance company that is required to provide information under subsection (1) shall do so fully, promptly and in the manner required by the superintendent.

[Provisions of the Insurance (Captive Company) Act relevant to the enactment of this regulation: section 14]