Marginal note:Restriction on insurance business
416 (1) A bank shall not undertake the business of insurance except to the extent permitted by this Act or the regulations.
Marginal note:Restriction on acting as agent
(2) A bank shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the bank to any person engaged in the placing of insurance.
(3) The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between banks and
(a) entities that undertake the business of insurance; or
(b) insurance agents or insurance brokers.
(4) Nothing in this section precludes a bank from
(a) requiring insurance to be placed by a borrower for the security of the bank; or
(b) obtaining group insurance for its employees or the employees of any bodies corporate in which it has a substantial investment pursuant to section 468.
(5) [Repealed, 1997, c. 15, s. 45]
(6) For the purposes of this section, the business of insurance includes the issuance of any annuity where the liability thereon is contingent on the death of a person.
- 1991, c. 46, s. 416
- 1997, c. 15, s. 45
- Date modified: