O. Reg. 481/01: VARIABLE INSURANCE CONTRACTS

 

ontario regulation 481/01

made under the

insurance act

Made: December 12, 2001
Filed: December 14, 2001
Printed in The Ontario Gazette: December 29, 2001

Amending O. Reg. 132/97

(Variable Insurance Contracts)

1. (1) The definition of “CLHIA guidelines” in section 1 of Ontario Regulation 132/97 is revoked and the following substituted:

“CLHIA guidelines” means the guidelines of the CLHIA entitled “CLHIA Guidelines on Individual Variable Insurance Contracts Relating to Segregated Funds”, dated March 4, 1997, as amended on March 7, 2001 and published in The Ontario Gazette dated November 3, 2001;

(2) Section 1 of the Regulation is amended by adding the following subsections:

(2) The CLHIA guidelines do not apply with respect to the following variable insurance contracts until January 1, 2003: any contract that is in force on or after December 31, 2001 but is of a type that is not offered by the insurer after that date.

(3) The guidelines of the CLHIA entitled “CLHIA Guidelines on Individual Variable Insurance Contracts Relating to Segregated Funds” and dated March 4, 1997, as published in The Ontario Gazette dated May 3, 1997, apply with respect to the variable insurance contracts described in subsection (2) until December 31, 2002.

2. (1) Subsection 6 (1) of the Regulation is amended by striking out “On and after the day on which the CLHIA guidelines require audited financial statements”.

(2) Clause 6 (1) (a) of the Regulation is revoked and the following substituted:

(a) delivering to the person, along with the copy of the latest information folder required under subsection 110 (5) of the Act, a copy of all information that the CLHIA guidelines require to be provided to the person; and

(3) Subsection 6 (2) of the Regulation is revoked.

3. Subsection 8 (1) of the Regulation is revoked and the following substituted:

(1) It is an unfair or deceptive act or practice for an insurer to partition the assets of a segregated fund without first giving notice in accordance with the CLHIA guidelines.

4. Section 9 of the Regulation is amended by striking out the portion before clause (a) and substituting the following:

9. If segregated funds are to be merged, it is an unfair or deceptive act or practice,

. . . . .

5. The Regulation is amended by adding the following section:

Fundamental Change

9.1 (1) It is an unfair or deceptive act or practice for an insurer to make a fundamental change to a segregated fund without first giving notice in accordance with the CLHIA guidelines.

(2) In subsection (1),

“fundamental change” means a change that occurs in the circumstances set out in the CLHIA guidelines.

6. Section 10 of the Regulation is amended by striking out “On and after the day on which the CLHIA guidelines require audited financial statements”.

7. This Regulation comes into force on January 1, 2002.