CAA Insurance continuation and Shipowners’ asset release

Summary#

This notice publishes two separate items under the Insurance Companies Act (Canada).

• CAA Insurance Company says it intends to apply to continue under the federal act (objections due November 24, 2020).
• The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) applied for an order to release assets it holds in Canada (application dated August 10, 2020; oppositions due October 31, 2020).

What it does#

• Announces that CAA Insurance Company, currently incorporated under Ontario law, plans to apply to the Minister of Finance for letters patent to continue the company under the Insurance Companies Act (Canada). Anyone who objects may send written objections to the Office of the Superintendent of Financial Institutions by November 24, 2020. The notice says publication is not proof that the letters patent will be issued.
• Announces that The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) applied to the Superintendent of Financial Institutions (Canada) on August 10, 2020 for an order to release assets it keeps in Canada under section 651 of the Insurance Companies Act (Canada). Policyholders or creditors who oppose that release may file an opposition by October 31, 2020 with the Office of the Superintendent of Financial Institutions (by mail or email).

Who's affected#

• Policyholders and creditors of CAA Insurance Company and of The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg).
• Agents, brokers, and anyone relying on Canadian-held assets for claims against those insurers.
• The Office of the Superintendent of Financial Institutions and the Minister of Finance, who will review the applications and any objections.
• If it’s unclear who exactly will be affected in some cases, the notices invite interested parties to file objections so their concerns are considered.

Why it matters#

• If CAA Insurance Company is continued under the federal act, its regulator and some legal responsibilities could change. That can affect how the company is supervised and how claims or disputes are handled in Canada.
• If the asset-release order for The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) is granted, assets the company currently keeps in Canada could be released or moved, which could affect the funds available to satisfy Canadian claims or creditors.
• Deadlines to object are short: October 31, 2020 for the shipowners’ association and November 24, 2020 for CAA. The notices do not guarantee any outcome; the relevant federal authorities will decide after review.