CAA applies for federal continuance; Shipowners' asset release

Summary#

This Canada Gazette notice carries two short items about insurance companies.

• CAA Insurance Company says it will apply for “letters patent of continuance” to become a federally regulated insurance company under the Insurance Companies Act (Canada); objections are due by November 24, 2020.
• The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) applied for permission to release assets it holds in Canada; opposition from policyholders or creditors was invited by October 31, 2020 (the application was made on August 10, 2020).

What it does#

• For CAA Insurance Company:

  • Announces an intention to apply to the Minister of Finance for letters patent to continue the company under the Insurance Companies Act (Canada) (that is, to change its legal status from an Ontario corporation to a federally continued insurer).
  • Gives the public a deadline — November 24, 2020 — to send written objections to the Office of the Superintendent of Financial Institutions.
  • Notes that publication of the notice does not mean approval will be granted.

• For The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg):

  • Says the association applied to the Superintendent of Financial Institutions (Canada) on August 10, 2020 for an order allowing it to release assets that it keeps in Canada.
  • Invites any policyholder or creditor who opposes the release to file an opposition by October 31, 2020 with the Office of the Superintendent of Financial Institutions (by mail or email).

Who's affected#

• Customers, policyholders and creditors of CAA Insurance Company in Canada if the company’s legal status changes.
• Policyholders and creditors of The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) who may have claims or financial interests tied to assets held in Canada.
• The Office of the Superintendent of Financial Institutions and the Minister of Finance, because they will review the applications and any objections.
• If it’s unclear who exactly will be affected, the notices invite interested people (policyholders or creditors) to come forward by the listed deadlines.

Why it matters#

• A continuance to federal regulation can change which federal agency oversees a company and which rules apply. That can affect how complaints, claims or solvency issues are handled.
• Allowing a foreign association to release assets held in Canada could reduce the funds available in Canada to pay local claims or creditors. The government invited objections so people directly affected can try to stop or influence these outcomes.
• Publication of the notice is an administrative step, not a decision. The final outcome depends on the regulators’ review and the Minister’s discretion.