Protection of Assets (Insurance Companies) Regulations

The Protection of Assets (Insurance Companies) Regulations were made to regulate insurance companies and ensure the protection and maintenance of their assets. The regulations came into effect on June 4, 1992, replacing the existing Protection of Securities (Insurance Companies) Regulations.

These new regulations require insurance companies to maintain written procedures for handling and safeguarding their assets, which must be communicated to all directors, officers, employees, and agents who have access to these assets. The company is also required to keep an up-to-date record of every security it holds, ensuring that each security is kept securely in the custody of either the company or an authorized entity.

Additionally, the regulations require insurance companies to register securities in their name with the issuer's register and maintain bonds and insurance policies to indemnify against losses arising from dishonest or criminal acts of officers or employees. These bonds and insurance policies must be in place until at least 30 days after written notice is received by the Superintendent from the insurer or insured.

The regulations also specify requirements for depositing net amounts received from security transactions into a designated account, either with the company or with an authorized financial institution, trust company, government agency, or CDS Clearing and Depository Services Inc.

These measures are designed to safeguard the assets of insurance companies, prevent losses due to dishonest or criminal acts, and ensure compliance with applicable laws and regulations.