Mutual Company (Life Insurance) Conversion Regulations

The Mutual Company (Life Insurance) Conversion Regulations, made by the Governor General in Council on March 12, 1999, outline the process and requirements for the conversion of a life company that is a mutual company into a company with common shares. The regulations apply to converting companies that are proposing to convert their mutual status to a corporate structure.

The regulations set out various definitions, including the meaning of "conversion," "converted company," and "converting company." They also outline the process for determining the value of a converting company, which must be estimated using an approved method. Conversion proposals must include detailed reports on the conversion process, benefits to policyholders, and financial projections.

Policyholders are required to receive information about the proposed conversion, including descriptions of the advantages and disadvantages, alternatives to conversion, and the form, amount, and value of benefits to be provided as a result of the conversion. The regulations also require converting companies to obtain authorization from the Superintendent before sending notices of special meetings to policyholders.