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Part XIII quarterly progress reports require more detail: OSFI


August 17, 2009   by Canadian Underwriter


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A majority of foreign property and casualty insurers are on target to adapt to the amendments to Part XIII of the Insurance Companies Act by Jan. 10, 2010, but some areas still require further attention, said the Office of the Superintendent of Financial Institutions (OSFI).
OSFI released a bulletin reminding foreign insurers to file their second quarterly progress report by Aug. 31, 2009.
The first progress reports (filed as of May 31, 2009) allowed OSFI to assess companies’ understanding of the Part XIII amendments and monitor implementation progress. Based on these first progress reports, OSFI is asking for more detail in a few areas.
First, some companies, including those in run-off, did not explain in sufficient detail their plans to address the impact of Part XIII amendments on their past business, the OSFI bulletin said.
Second, with respect to risks insured in Canada, the amendments require companies to set out in all premium notices, applications for policies and the policies themselves a statement that the document was issued or made in the course of its insurance business in Canada.
“Some companies… did not specify in their first progress reports that they were taking the necessary steps to ensure that the above statement will be included in documentation issued in the course of the company’s insurance business in Canada,” the bulletin said.
Third, some companies failed in their first quarterly report to provide an explanation of the analysis and progress made regarding whether additional assets will be required to be vested in Canada for insurance business that takes place in Canada covering risks that are located outside of Canada, OSFI said.


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