Affiliated Persons (Insurance Companies) Regulations

The Affiliated Persons (Insurance Companies) Regulations are made under the Insurance Companies Act and specify the circumstances under which a natural person is affiliated with an insurance company. These regulations came into effect on June 1, 1992. The main purpose of these regulations is to define affiliation in various contexts, including officers and employees, shareholdings, investments, borrowing, services provided, loan status, and family relationships. A natural person can be considered affiliated with a company if they meet any of the following criteria: being an officer or employee, holding significant shares, having substantial investments in affiliates, being significant borrowers, controlling entities that would be significant borrowers, providing goods or services exceeding 10% of their annual billings, having loans not in good standing, or being related to individuals meeting these conditions. These regulations are essential for determining the affiliations and relationships between natural persons and insurance companies under the Insurance Companies Act.