Docstoc

SECTION VIII

Document Sample
SECTION VIII Powered By Docstoc
					SECTION VIII                                                                  UPDATE – 2009


Lines that include changes to the Instructions have been highlighted by shading; pages that
include changes made in 2009 have "2009" in the lower left corner.
The following changes have been made for 2009:

Instructions
II-4, 5        Filing Requirements – Updated
V-4            Nova Scotia – Updated
V-10           Manitoba - Updated
V-11.1         Saskatchewan – Updated
V-15           Yukon – Updated
V-18, 19       Federal – Updated
VI-10          Added instructions for Page 20.52
VI-19          Changed wording “80% of the market value” to “80% of the loan to value ratio”
               under Lines 03 and 04
VI-26          Added instructions for Page 60.20
VI-34          Deleted wording “Insurers Licensed in Provinces that regulate Marine business
               from Page 70.21
IX(a)-1        Updated
IX(i)-1-3      Interim Return Instructions - Updated
Annual Return (2009)
10.41       Deleted Question #77
19.10       Added new Details of Assets page
20.10/.30   Updated reference to page 40.07
20.52       Added footnote
40.07       Wording“80% of the market value” changed to “80% of the loan to value ratio”
            under Line 03
50.20/.30   Deleted wording “for Doubtful Accounts”
50.50       Added new line 76 “Employment Benefits”
60.20       Added wording “at year end” under column 21
80.20       Deleted wording “for Doubtful Accounts”
Interim Return (2010)
Changes to Interim Return to follow




(2009)                                   VIII-14                            INSTRUCTIONS P&C-1
  SECTION II                                                           FILING REQUIREMENTS


  Filing Requirements – P&C-2
  Annual and Interim Returns must be filed in every jurisdiction where the insurer is licensed or
  registered as follows:

                                                                Annual Return     Interim Return
Jurisdiction               Deadline                             Hard   Electronic Hard Electronic
                                                                copy      file    copy      file
                                                              required required required required
Federal                    60 days after year-end,                1        1        -         -
                           including reinsurers (R)
                           45 days after quarter-end              -           -          -          1
Newfoundland and           March 31                              **          **          -          -
Labrador
Prince Edward Island       February 28                           **           -          -          -
Nova Scotia                March 31                              **           -          -          -
New Brunswick              March 31                               1           *          -          -
Quebec                     March 1, except                        1           1          -          -
                           March 15 for reinsurers (R)
                           Aug 15, except Aug 31 for              -           -          1          1
                           reinsurers (R)
Ontario                    February 28, except                  2(M)          1          -          -
                           April 15 for reinsurers (R)
Manitoba                   February 28, except                  1(F)          *          -          -
                           March 15 for reinsurers (R)
Saskatchewan               February 28                           **           -          -          -
Alberta                    60 days after year-end, except        **           -          -          -
                           105 days for reinsurers (R)
British Columbia           90 days after year-end, except        **          **          -          -
                           105 days for reinsurers (R)
Yukon                      March 15                              **           -          -          -
Northwest Territories      February 28                           **           -          -          -
Nunavut                    February 28                           **           -          -          -

  *        Required if produced
  **       Refer to Section V for limited filing requirements
  (F):     Federally registered insurers should refer to Section V for filing requirements.
  (R):     Insurers whose certificates of registry are limited to reinsurance.
  (M):     Insurers licensed in Ontario to write only marine business.




  (2009)                                         II-4                             INSTRUCTIONS P&C-2
SECTION II                                                           FILING REQUIREMENTS



Mailing Addresses

See Section IX - Appendix (a) for the mailing addresses of all Regulators.


Penalties for Late Filing

Annual Returns must be received in the office of the Regulator on the due dates. There are
penalties for late filing in all jurisdictions. In some jurisdictions, late filing is an offence that
may result in prosecution as well as fines.


Electronic Filing

The Canadian Council of Insurance Regulators (CCIR) has undertaken to provide for
insurers to file data electronically. The specifications for "Electronic filing" are in Section
IX - Appendix (f), (g) and (h).

Supplementary diskette/CD-Rom filing of Annual Returns or electronic filing via a secure
means provided by their Regulator is compulsory for all foreign property and casualty
insurers that are Federally registered and/or licensed in Quebec and British Columbia, and
for foreign insurers licensed in Ontario to write only marine business. Please refer to the
schedule on Page II-4 for the requirements of all jurisdictions.

Supplementary diskette/CD-Rom filing of Interim Returns or electronic filing via a secure
means provided by their Regulator is also compulsory for Federally registered and Quebec
licensed insurers, and for foreign insurers licensed in Ontario to write only marine business.


Interim Returns

See Section IX - Appendix (f) and (i) for Interim Return Instructions.


Amended Annual Returns

If amendments are made to the Annual Return, an amended file, validation report and
transmittal form, together with the amended pages (on which the changes have been
highlighted) and an updated Affidavit (Page 99.10) must be filed immediately with every
jurisdiction where the insurer has filed an original. An updated Auditor's Report may also be
required if there are material changes affecting pages 20.10 to 20.60 of the Annual Return.




(2009)                                        II-5                              INSTRUCTIONS P&C-2
SECTION V                                            JURISDICTIONAL REQUIREMENTS



Nova Scotia

Other specific instructions necessary to meet Nova Scotia's requirements may be circulated
by the Superintendent, to the appropriate insurers, prior to year-end.


   Legislation

   Insurance Act: R.S.N.S 1967
   Insurance Premiums Tax Act
   Licensing of Insurers Regulations


   Actuary's Report

   Insurers are not required to file their Actuary's Report with the condition that a copy be
   available at any time upon request.


   Language

   Contact the Regulator for direction.


   Statutory filings by Federally registered insurers

   Federally registered insurers are required to file only the following pages from their
   Annual Return (P&C-2):
   Page 10.10, 67.10, 67.20, 67.30, 99.10 and 99.15




(2009)                                      V-4                             INSTRUCTIONS P&C-2
SECTION V                                            JURISDICTIONAL REQUIREMENTS



Manitoba

Other specific instructions necessary to meet Manitoba's requirements may be circulated by
the Superintendent, to the appropriate insurers, prior to year-end.


   Legislation

   The Insurance Act: R.S.M. 1987
   The Marine Insurance Act R.S.M. 1987
   The Insurance Corporations Tax Act R.S.M. 1987

         Regulation to the Insurance Act:
         Insurance Company Classes of Insurance
         Insurance Companies Financial Requirements


   Actuary's Report

   Insurers are not required to file their Actuary's Report with the condition that a copy be
   available at any time upon request.


   Language

   Filings in either official language are acceptable.


   Statutory filings by Federally registered insurers

   Statutory filings made by Federally registered insurers, as required by Section 84 of the
   Act, will only need to be submitted to the Office of the Superintendent of Financial
   Institutions, Ottawa.


   Insurers other than Provincial Insurers and Reciprocal Insurance Exchanges

   A report that sets out the particulars of the insurer’s business in Manitoba during the year
   (Section 84). To meet this requirement, Property & Casualty insurers must file P&C-1 & 2
   pages 67.10 and 67.30.




(2009)                                      V-10                           INSTRUCTIONS P&C-2
SECTION V                                           JURISDICTIONAL REQUIREMENTS



Saskatchewan (cont’d)

   In addition to the above, Reciprocal Insurance Exchanges need to file:

    6. The name and address of the attorney for the reciprocal insurance exchange.

    7. The particulars respecting the reserve fund and guarantee fund maintained by the
       reciprocal insurance exchange.

   For Insurers Other than Provincial Insurers and Reciprocal Insurance Exchanges

    1. A report that sets out the particulars of the insurers business in Saskatchewan during
       that year (Section 87). To meet this requirement the insurers may file pages 10.10
       (Corporation information) and the provincial exhibits 67.10 to 67.30.

    All annual filings must be filed as follows:

    1. If limited by the Superintendent to reinsurance only, 105 days after the financial
       yearend (Subsection 86(3) & 87(3)).

    2. For all other insurers 60 days after the financial yearend (Subsection 86(3) & 87(3)).


   Language

   Contact the Regulator for direction.


   Signature Requirements

   For provincial insurers and reciprocal insurance exchanges, the Annual Return shall be
   verified by the president, vice-president or managing director, or other director appointed
   for the purpose by the board of directors and by the secretary or manager of the insurer.


   Statutory filings by Federally registered insurers

   Federally registered insurers are required to file only the Federally Regulated Insurance
   Company Information form.




(2009)                                    V-11.1                            INSTRUCTIONS P&C-2
SECTION V                                            JURISDICTIONAL REQUIREMENTS



Yukon

Other specific instructions necessary to meet the Yukon's requirements may be circulated by
the Superintendent, to the appropriate insurers, prior to year-end.


   Legislation

   Insurance Act: R.S.Y. 2002, C119

         Regulation
         Commissioner’s Order 1977/235: #2 - Classes of Insurance


   Language

   Contact the Regulator for direction.


   Actuary's Report

   Insurers are required to file only a Certificate of Opinion with the condition that a copy of
   the Auditor’s Report be available at any time upon request.




(2009)                                     V-15                             INSTRUCTIONS P&C-2
SECTION V                                            JURISDICTIONAL REQUIREMENTS



Federal

Insurance Companies Act (ICA)

Regulations that are applicable to federally regulated property and casualty companies can be
accessed at the following link:

http://canada.justice.gc.ca/eng/index.html


Guidelines and other Guidance

Guidelines that are applicable to property and casualty insurance companies are available at
the following link:

http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?DetailID=527

OSFI also issues other guidance (ie. letters, bulletins) that is accessible on the OSFI website:

http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=178


Unpaid Claims and Adjustment Expenses - Page 20.20, line 13

In accordance with section 667 of the Insurance Companies Act, insurers must not report an
amount for Unpaid Claims and Adjustment Expenses that is lower than the Actuary's best
estimate.


Letters of Credit

Pursuant to section 9 of the Assets (Foreign Companies) Regulations, the Superintendent
may allow a foreign company to reduce the total value of assets otherwise required to be
maintained in Canada by the amount of a letter of credit drawn on a bank, up to a maximum
reduction of 15% of the total value.

Letters of credit may be used to offset the margin required for unregistered reinsurance. The
maximum that may be used is 10% of the total amount of the unearned premiums and
outstanding losses recoverable from all assuming insurers (i.e. the equivalent of the amount
reported on Page 70.39, line 89, column 06). There is no prescribed limit set for letters of
credit from any one assuming insurer.



(2009)                                       V-18                           INSTRUCTIONS P&C-2
SECTION V                                             JURISDICTIONAL REQUIREMENTS



Federal (cont'd)

Letters of Credit (cont’d)

Letters of credit must be in the standard format required by OSFI, and must be forwarded
directly to the Office for approval. In addition:

   (i)     Letters of credit must be in Canadian dollars and payable in Canada. Letters of
           credit must be issued by Canadian banks or confirmed by Canadian banks if issued
           by foreign banks;

   (ii)    They must be for a fixed term, at least one year;

   (iii)   They must be for a stipulated dollar amount;

   (iv)    They must be irrevocable except with at least three months notice to the
           Superintendent. This condition can be satisfied either by a provision in the letter of
           credit or by a letter of confirmation from the issuing bank;

   (v)     The issuing bank, and the confirming bank if applicable, must not have any claim
           on the insurance company assets vested in trust with a Canadian trustee for the
           protection of Canadian policyholders, as security for the letters of credit; and

   (vi)    Letters of credit should be callable by the beneficiary and will be held in the
           custody of the Superintendent.

Companies wishing to utilize letters of credit should contact the Office for further
information.


Affidavits Verifying Annual Return - Pages 99.10 and 99.15 -

The Affidavit on Page 99.10 must be signed by the Chief Agent. The Affidavit on
Page 99.15 must be signed by the President / Chief Executive Officer (refer also to the
"Detailed Instructions" for Page 99.15).




(2004)                                      V-19                             INSTRUCTIONS P&C-2
SECTION VI                                                        DETAILED INSTRUCTIONS


Page 20.52 - Statement of Cash Flows

This Statement is provided as a guide only. P&C insurers may complete this page or attach a
Statement of Cash Flows as prepared for the P&C insurer's financial statements.


Page 20.60 - Notes to Financial Statements

Notes to the Financial Statements (Pages 20.10 to 20.52 inclusive) are to be reproduced on, or
attached to, Page 20.60.

In addition to notes normally required under GAAP, these notes should include the following
items, where relevant:

         -   the existence of "financing reinsurance" arrangements and their financial impact,
         -   the percentage of the insurer's participation in a pool, and disclosure of its share of
             the amount of direct premiums written, reinsurance assumed and reinsurance ceded
             in the pool, and
         -   the amount by which Deferred Policy Acquisition Expenses have been written
             down due to a Premium Deficiency. This amount should be broken down by
             commission expense, commission income, premium taxes and other acquisition
             expenses, as applicable. The note must also indicate details of the adjustment
             made to Page 80.10, column 10, lines 09 - 79.


Page 30.80 and 30.81 - Branch Adequacy of Assets Test (BAAT)

Please refer also to OSFI’s Guideline Branch Adequacy of Assets Test.
Note that all amounts are net of Marine business.




(2009)                                     VI-10                              INSTRUCTIONS P&C-2
SECTION VI                                                       DETAILED INSTRUCTIONS


Page 40.07 - Lines 03 and 04 – Mortgage Loans

Report only those residential and commercial mortgage loans where the total value of the
loan(s) outstanding on the property is less than 80% of the loan to value ratio of the property
at the time of writing the loan on line 03. All other mortgages must be recorded on line 04.

The balance sheet value reported for each mortgage loan is the net balance sheet value after
deducting any allowance for loan impairment.

             - Lines 10 and 11 – Preferred Shares

Record preferred shares that are treated as debt under GAAP on line 10 and all other
preferred shares on line 11.

             - Line 20 – Investment Real Estate

Complete each column for all Investments in Real Estate reported on Page 40.70. See also
instructions for Page 40.70.

             - Line 30 – Other Investments

Complete each column for all investments reported on Page 40.80. See also instructions for
Page 40.80.

             - Line 39 – Total Investments

Amount reported in column 12 must equal page 20.10, line 19, column 02.

             - Line 41 – Foreign Pay Securities

Investments in Canadian and foreign bonds, debentures, shares and other investments whose
principal, interest, dividends or payments are denominated in a currency other than Canadian
dollars.

Only column 12 is to be completed for this item. Record the total balance sheet value of all
investments included in Total Investments (Line 39) that are in Canadian and foreign bonds,
debentures, shares and other investments whose principal, interest, dividends or payments are
denominated in a currency other than Canadian dollars.




(2009)                                     VI-19                             INSTRUCTIONS P&C-2
SECTION VI                                                       DETAILED INSTRUCTIONS


Page 60.10 - Unearned Premiums

Unearned premiums established at year-end must be sufficient to cover future claims and
general expenses related to the unexpired term of the policies. The method of calculation
adopted should be applied consistently from year to year.

The unearned premiums and mid-terminal reserves for accident and sickness business must be
included with unearned premiums throughout the return.

For additional information on the classes of insurance, refer to Section IX, Appendix (e).


Page 60.20 - Column 21 – Number of Policies in Force

Each class (or subclass) requires the number of policies, where coverage is provided, to be
reported in column 21. Number of policies in force refers to direct policies issued by the
insurer.

In some circumstances – the premium for one policy is allocated to subclasses (i.e. automobile
policies), or is allocated to different lines of business (i.e. commercial policies). In those
instances – the policy in force count should include each subclass or additional line of business
where coverage is provided. The policy in force count will not be additive to the total line
(line 89).

Example: Company with 2 policies in force: 1 automobile policy, 1 commercial lines policy

                                                    Line         No. policies in force
     1 automobile policy
     Automobile       -liability                     19                    1
                      -pers. Accident                20                    1
                      -other                         21                    1
     Automobile - total                              29                    1
     1 commercial policy
     Property - commercial                           07                    1
     Boiler & Machinery                              32                    1
     Liability                                       59                    1
     TOTAL                                           89                    2




(2009)                                    VI-26                                INSTRUCTIONS P&C-2
SECTION VI                                                       DETAILED INSTRUCTIONS


Page 70.10 - Premiums and Claims - Reinsurance Ceded

The purpose of this exhibit is to compare claims incurred for each type of reinsurance ceded
arrangement to premiums earned in respect of each arrangement. In this way the Regulator can
assess the approximate profitability of business ceded to reinsurers by type of reinsurance and
by major line of business.

Although this exhibit is best completed line by line for each of the regular classes of insurance,
any reasonable groupings by lines of business will be acceptable.

Each column is intended to capture premiums earned and claims incurred data concerning a
distinct type of reinsurance arrangement entered into by the insurer. For example, in column 02,
all the premiums earned for quota share treaties should be included even if there is more than
one quota share treaty. The other columns should be completed in the same manner, i.e. all
premiums earned for surplus treaties are included together in column 03, etc.

The amount reported on line 89, column 06, "total premiums earned" must be equal to the total
premiums ceded to reinsurers plus or minus the change in reinsurance ceded unearned
premiums for the year.


Page 70.21 - Summary of Reinsurance (including Marine)

Regulators must be in a position to ascertain that the business ceded/assumed is actually being
reported in the Canadian Annual Return of the assuming/ceding insurer. The objective of this
exhibit is to ensure that no reinsurance transaction has the effect of reducing the amount of
assets that should properly be available in Canada for the protection of policyholders. Insurers
must report each affiliated company separately.

In respect of business ceded to/assumed from non-affiliated insurers, where ceded/assumed
premiums ceded/assumed claims incurred by a single insurer are less than 10% of the total
ceded/assumed premiums ceded/assumed claims incurred, such business can be grouped and
shown together on a single line.

Line 91, columns 02 to 05 must equal the corresponding amounts reported on Page 70.35,
line 89, columns 02 to 05.


Page 70.23 - Summary of Reinsurance (excluding Marine)

Refer to the Instructions for Page 70.21, except that line 91, columns 02 to 05 must equal the
corresponding amounts reported on Page 70.39, line 89, columns 02 to 05.




(2009)                                     VI-34                              INSTRUCTIONS P&C-2
SECTION IX                                                              APPENDIX (a)
                                                                           Regulators



Alberta                                           New Brunswick

Superintendent of Insurance                       Superintendent of Insurance
Alberta Finance and Enterprise                    Department of Justice and Consumer Affair
402 Terrace Building                              Insurance Branch
9515-107 Street                                   440 King Street, Room 635
Edmonton, AB T5K 2C3                              King Tower
                                                  Fredericton, NB E3B 5H8

TEL: (780) 422-1592                               TEL: (506) 453-2512
FAX: (780) 420-0752                               FAX: (506) 453-7435
www.finance.gov.ab.ca                             www.gnb.ca

British Columbia                                  Newfoundland & Labrador

Deputy Superintendent of Insurance                Superintendent of Insurance
Financial Institutions Commission                 Dept. of Government Services
Suite 1200                                        2nd Floor West Block Confederation Bldg.
13450 102nd Avenue                                Prince Philip Drive, P.O. Box 8700
Surrey, BC V3T 5X3                                St. John's, NL A1B 4J6

TEL: (604) 953-5300                               TEL: (709) 729-2571
FAX: (604) 953-5301                               FAX: (709) 729-4151
www.fic.gov.bc.ca                                 www.gov.nf.ca

Manitoba                                          Northwest Territories & Nunavut

Deputy Superintendent of Financial                Superintendent of Insurance
 Institutions - Insurance                         Treasury Division
Dept. of Consumer & Corporate Affairs             Department of Finance
1115-405 Broadway Avenue                          Government of the Northwest Territories
Winnipeg, MB R3C 3L6                              4922 - 48 Street, Third Floor
                                                  Yellowknife, NT X1A 2L9

TEL: (204) 945-2542                               TEL: (867) 873-7308
FAX: (204) 948-2268                               FAX: (867) 873-0325
www.gov.mb.ca/cca                                 www.gov.nt.ca




(2009)                                  IX(a)-1                       INSTRUCTIONS P&C-1
SECTION IX                                                                       APPENDIX (i)
                                                                     Interim Return Instructions



Introduction

The Annual Return Instructions are generally applicable to most aspects of the Interim
Return.

The Instructions that follow are intended to cover only those features unique to the Interim
Return. If additional information or assistance is required, the insurer's Primary Regulator
should be contacted at the address listed in Appendix (a).

Quarterly Filing Deadlines

The Interim Return is to be completed and filed with the applicable Jurisdiction (Regulator)
on or before the due dates as follows:

Jurisdiction                                                Period
 (Regulator)              Insurer/Reinsurer*                Ended                   Due Date

Federal                   Federally registered              Jan 31/Mar 31           Within 45 days
                          Insurers and Apr 30/June 30       Within 45 days
                          reinsurers                        July 31/Sept 30         Within 45 days

Quebec                    Insurers licensed
                          in Quebec, except
                          reinsurers* June 30               Aug 15

Quebec                    Reinsurers* licensed
                          in Quebec June 30                 Aug 31

Ontario                   Insurers incorporated             Mar 31                  May 15
                          in Ontario June 30                Aug 15
                                                                Sept 30             Nov 15

Alberta                   Insurers incorporated             Mar 31                  May 15
                          in Alberta June 30                Aug 15
                                                            Sept 30                 Nov 15

BC                        Insurers incorporated             Dec 31/Mar 31           Within 30 days
                          in BC                             June 30/Sept 30         Within 30 days

          *Insurers whose certificates of registry are limited to reinsurance




(2009)                                         IX(i)-1                          INSTRUCTIONS P&C-1
SECTION IX                                                                   APPENDIX (i)
                                                                 Interim Return Instructions



Standard Format

Insurers are to complete the latest version of the Interim Return approved by the Canadian
Council of Insurance Regulators or similar computer-generated pages that conform in
appearance, size and content (where required), together with a file (where required). (See
pages IX-13 and IX-23 for Filing Specifications and Filing Deadlines / Requirements).

The Interim Return includes the following pages:

   Cover page ...   Certification
   Page 19.10 …     Details of Assets
        20.10 ...   Assets
        20.20 ...   Liabilities and Equity
        20.30 ...   Statement of Income
        20.40 ...   Statement of Retained Earnings; Reserves
        20.42 …     Comprehensive Income (Loss) and AOCI (Loss)
        30.70 ...   Minimum Capital Test (MCT)
        30.71 ...   MCT: Capital Required for Balance Sheet Assets
        40.07 …     Summary of Investments
        40.80 ...   *Other Investments (Quebec – Interim Return only)
        60.20 ...   Premiums and Claims
        60.21 …     Claims Incurred - Undiscounted
        67.10 …     Provincial and Territorial Exhibit of Premiums Written
        67.20 …     Provincial and Territorial Exhibit of Premiums Earned
        67.30 …     Provincial and Territorial Exhibit of Claims Incurred
        67.31 …     Provincial and Territorial Exhibit of Claims Incurred - Undiscounted
        70.38 ...   Reinsurance Ceded to Unregistered Insurers
        80.10 ...   Commissions

            * Only Insurers who are required to file an Interim Return with Quebec are to
            complete these pages. All other insurers should not file hard copies of
            page 40.80.

The name of the insurer and the date of the return should be printed on every page.

Certification: Cover page / File Transmittal Form

The certification must be signed by an Officer whose name would normally appear on
Page 10.10 of the Annual Return, preferably the chief financial officer who could be
contacted if the Regulator has any questions about the Interim Return.




(2009)                                    IX(i)-2                         INSTRUCTIONS P&C-1
SECTION IX                                                                   APPENDIX (i)
                                                                 Interim Return Instructions



Generally Accepted Accounting Principles (GAAP)

The Interim Return should be prepared in accordance with GAAP and with the statutory
provisions that were applied in the preparation of the most recent Annual Return that the
insurer filed with its Canadian Insurance Regulator(s).


Comparative Amounts

Wherever applicable, comparative amounts for the equivalent period ending in the previous
year must be entered in the "prior" column.

Note: On page 20.40, the prior period amounts entered on lines 01 and 89, column 02, are
the beginning of year and end of period balances, respectively. Thus, unlike the Annual
Return, line 01, column 01 is not equal to line 89, column 02.


Quebec Incorporated Insurers

Insurers incorporated in the Province of Quebec are not required to complete Page 40.07.


Additional Filings/Detail

The frequency of reporting referred to in these Instructions (semi-annual, quarterly) may be
increased for certain insurers, depending on circumstances. Insurers will be advised directly
by Regulators who require additional reporting and/or detail.




(2009)                                   IX(i)-3                          INSTRUCTIONS P&C-1
                 Insurer                                                                        Year
                                                 ANNUAL RETURN
                                                     P&C-2
                                               TABLE OF CONTENTS
                                                                                        Page
  General Information
          Corporate Data, Chief Agent, Officers, Auditor, Actuary                       10.10
          Corporate Organization Chart                                                  10.30
          Other Information                                                             10.40 - .42
          Summary of Selected Financial Data for five years                             10.60
          Details of Assets                                                             19.10

  Financial Statements
          Assets                                                                        20.10
          Liabilities, Head Office Account, Reserves & AOCI                             20.20
          Statement of Income                                                           20.30
          Head Office Account                                                           20.45
          Reserves                                                                      20.45
          Comprehensive Income (Loss) & Accumulated Other Comprehensive Income (Loss)   20.47
          Statement of Cash Flows                                                       20.52
          Notes to Financial Statements                                                 20.60

  Statutory Compliance
          Branch Adequacy of Assets Test                                                30.80
          Branch Adequacy of Assets Test - Margins Required for Assets                  30.81

  Investments
         Summary of Investments                                                         40.07
         Real Estate (Investment and for own use)                                       40.70
         Other Investments                                                              40.80

  Miscellaneous Assets and Liabilities
          Receivable from/payable to Unaffiliated Agents & Brokers                      50.20
          Other Receivables                                                             50.20
          Receivable from/payable to Other Insurers                                     50.30
          Receivable from/payable to Affiliates                                         50.40
          Other Liabilities and Unrecognized Assets and Liabilities                     50.50

  Premiums, Claims and Adjustment Expenses - Total
         Unearned Premiums                                                              60.10
         Premiums and Claims                                                            60.20
         Claims Incurred - Undiscounted                                                 60.21
         Analysis of Claims Paid and Unpaid                                             60.30
         Net Claims and Adjustment Expenses Run-off (including Marine)                  60.40
         Net Claims and Adjustment Expenses Run-off - Discounted (including Marine)     60.41
         Net Claims and Adjustment Expenses Run-off (excluding Marine)                  60.42
         Net Claims and Adjustment Expenses Run-off - Discounted (excluding Marine)     60.43
         Adjustment Expenses                                                            60.50

  Provincial and Territorial Summaries
          Premiums Written                                                              67.10
          Premiums Written (Quebec)                                                     67.15
          Premiums Earned                                                               67.20
          Claims Incurred                                                               67.30
          Claims Incurred - Undiscounted                                                67.31

  Reinsurance Ceded
         Premiums and Claims by Line of Business                                        70.10
         Summary of Reinsurance      - including Marine                                 70.21
                                     - excluding Marine                                 70.23
         Unregistered Insurers       - excluding Marine                                 70.39
         Non-owned Deposits and Letters of Credit                                       70.40

  Commissions and Expenses
        Commissions                                                                     80.10
        Expenses                                                                        80.20

  Affidavits
          Chief Agent                                                                   99.10
          President/Chief Executive Officer                                             99.15

P&C - 2
(2009)
                       Insurer                                                                                                               Year

                                                         OTHER INFORMATION (continued)

Maximum net retention in Canada of any one risk for each class of insurance ($'000):

                                                                                                                              Net retention
                           Class of insurance                                                           Policy Limit   Current Year     Prior Year
                                                                                                            (01)           (02)            (03)

Property                 - personal ........................................................ 03
                         - commercial ................................................... 07
Aircraft ...................................................................................... 10
Automobile               - liability ......................................................... 19
                         - personal accident .......................................... 20
                         - other ............................................................. 21
Boiler and Machinery ................................................................ 32
Credit ......................................................................................... 34
Credit Protection ……………………………………………… 35
Fidelity ....................................................................................... 36
Hail ............................................................................................ 38
Legal Expense ........................................................................... 40
Liability ..................................................................................... 59
Mortgage .................................................................................... 62
Other Approved Products ……………………………………… 63
Surety ......................................................................................... 64
Title ............................................................................................ 66
Marine ........................................................................................ 68
Accident and Sickness ............................................................... 70

75          Has the insurer made any significant changes regarding reinsurance arrangements
             during the year?                                                                                                            Y/N

            If yes, attach details (see Section VI of the Annual Return Instructions).

76          Has the insurer made any portfolio transfer, and/or commutation of reinsurance
             treaties during the year?                                                                                                   Y/N

            If yes, attach details (see Section VI of the Annual Return Instructions).


79          Number of automobiles insured under automobile insurance policies , as at year-end: ......................


Assessable Income information ($'000):                                                                                 Current Year

                                                                                                                           (02)

     Accident and Sickness net premiums written in Ontario .............                                          85




 P&C-2                                                                             10.41                                          (Next page is 10.42)
 (2009)
                              Insurer                                                                                                              Year



                                                                          DETAILS OF ASSETS

                                                                                                               Total                 Vested in Trust
                                                                                                           Balance Sheet   Balance Sheet
                                                                                                               Value           Value           Amortized Cost
                                                                                    ($'000)                   ($'000)         ($'000)              ($'000)
                                                                                      (11)                      (01)            (02)                 (06)
Cash …………………………………………………………………… 01
Cash Equivalents ……………………………………………………… 02
Term Deposits (1 year or less)
      Government Grade ……………………………………………… 04
      Investment Grade …………………………………………………05
      Not-Investment Grade …………………………………………… 06
Bonds and Debentures (1 year or less)
      Government Grade ……………………………………………… 08
      Investment Grade …………………………………………………09
      Not-Investment Grade …………………………………………… 10
Term Deposits > 1 year
      Government Grade ……………………………………………… 12
      Investment Grade …………………………………………………13
      Not-Investment Grade …………………………………………… 14
Bonds and Debentures > 1 year
      Government Grade ……………………………………………… 16
      Investment Grade …………………………………………………17
      Not-Investment Grade …………………………………………… 18
Mortgage Loans to non-affiliates
      Residential - (< 80% Loan to Value Ratio) - Government Grade 20
      Residential - (< 80% Loan to Value Ratio) - Investment Grade … 21
      Commercial Mortgage Loans (< 80% Loan to Value Ratio) …… 22
      Other Commercial Mortgage Loans ………………………………23
      Other Residential Mortgage Loans ……………………………… 24
Consumer/commercial Loans and Other Investments
      Government Grade - classified as Bonds & debentures ………… 26
      Government Grade - classified as Mortgage loans ……………… 27
      Government Grade - classified as Other Investments …………… 28
      Investment Grade - classified as Bonds & debentures ……………29
      Investment Grade - classified as Mortgage loans …………………30
      Investment Grade - classified as Other Investments ………………      31
      Other - classified as Bonds & debentures …………………………            33
      Other - classified as Mortgage loans ………………………………              34
      Other Loans - classified as Other Investments ……………………35
      Derivatives, Structured Settlement, etc. ………………………… 37
      Other Investments - excluding all items listed above …………… 38
Preferred Shares
      Investment Grade - Debt ………………………………………… 40
      Investment Grade - Equity ……………………………………… 41
      Non-Investment Grade - Debt …………………………………… 42
      Non-Investment Grade - Equity ………………………………… 43
Common Shares …………………………………………………………45
Real Estate
      Investment …………………………………………………………                              46
      For Insurer's own use …………………………………………… 47
Investment Income due and accrued ………………………………… 57

Receivables                                                Marine Insurance Receivables (for page 30.81)
       Income Taxes …………………………………………………… 59
       "Facility Association" and the "PRR" …………………………… 60
       Agents and Brokers ……………………………………………… 61
       Policyholders ………………………………………………………              62
       Instalment Premiums not yet due …………………………………    63
       Instalment Premiums Outstanding ……………………………… 64
              Total Marine Receivables …………………………………    65
              Non marine- Outstanding >60 days ………………………66
       Other Insurers …………………………………………………… 69
       Other Receivables …………………………………………………72
       Affiliates ………………………………………………………… 73
Recoverable from Reinsurers                                Marine Insurance Recoverables
       Unearned Premiums ………………………………………………76
       Unpaid claims & adjustment expenses ……………………………77
Self Insured Retention ………………………………………………… 79
Other recoverables on Unpaid claims …………………………………81
Other Assets …………………………………………………………… 85
Deferred Policy Acquisition Expenses …………………………………      90
Future Income Taxes ……………………………………………………                93
Total …………………………………………………………………… 99
Foreign currency assets ……………………………………………… 95
Foreign currency liabilities ……………………………………………96




P&C-2                                                                            19.10                                                          (Next page is 20.10)
(2009)
                    Insurer                                                                                                     Year

                                                                          ASSETS
                                                                           ($'000)

                                                                                              Current Year             Prior Year
Reference                                                                                  Total *    Vested in   Total *     Vested in
  Page                                                                                                 Trust**                 Trust**
                                                                                            (01)        (02)       (03)         (04)


            Cash .................................................................... 01
            Investment Income due and accrued .................. 02

            Investments:
               Term Deposits ……………………………… 04
               Bonds and Debentures .................................... 05
               Mortgage Loans .............................................. 06
               Preferred Shares ............................................. 07
               Common Shares ............................................. 08
 40.70         Real Estate ...................................................... 09
 40.80         Other Investments .......................................... 10

 40.07      Total Investments (lines 04 to 10) ..................... 19

            Receivables:
 50.20         Unaffiliated Agents and Brokers .................... 20
               Policyholders .................................................. 21
               Instalment Premiums ...................................... 22
 50.30         Other Insurers ................................................. 23
               "Facility Association" and the "P.R.R." .......... 24
 50.40         Affiliates ......................................................... 25
               Income Taxes ................................................. 26
 50.20         Other Receivables .......................................... 27

            Recoverable from reinsurers:
 60.10         Unearned Premiums ....................................... 30
 60.30         Unpaid Claims and Adjustment Expenses ..... 31
            Other Recoverables on Unpaid Claims .............. 37


 40.70      Real Estate for Insurer's own use ....................... 41
            Deferred Policy Acquisition Expenses ............... 43
            Future Income Taxes .......................................... 44
            Other Assets ....................................................... 88

            TOTAL ASSETS ............................................. 89



   *        Including Marine.
   **       Excluding deposits of reinsurers held in special trust accounts, and excluding Marine.




 P&C-2                                                                       20.10                                  (Next page is 20.20)
 (2009)
                    Insurer                                                                                                                                             Year

                                                                                STATEMENT OF INCOME
                                                                                       ($'000)

                                                                                                                                        Current Year          Prior Year
Reference                                                                                                                             Total    Excluding   Total    Excluding
  Page                                                                                                                                           Marine               Marine
                                                                                                                                      (01)        (02)     (03)        (04)
            UNDERWRITING OPERATIONS
                Premiums Written
                    Direct .................................................................................                   01
 70.21              Reinsurance assumed ...............................................................                        02
 70.21              Reinsurance ceded ................................................................                         03
 60.20          Net Premiums Written .........................................................                                 04
                    Decrease (increase) in Net Unearned
                      Premiums .....................................................................                           05
 60.20          Net Premiums Earned ........................................................                                   06
                    Service charges .................................................................                          07
                    Other ...........................................................................                          08
                Total Underwriting Revenue ....................................................                                09
 60.20              Net claims and adjustment expenses .......................................                                 10
                    Acquisition Expenses
 80.10                   Commissions .......................................................................                   11
                         Taxes ......................................................................................          12
 80.20                   Other ......................................................................................          14
 80.20              General expenses ...............................................................                           16
                Total Claims and Expenses .........................................................                            19
                    Premium deficiency adjustment ..........................................                                   20
                Underwriting Income (Loss) .............................................................. 29

 40.07      INVESTMENT OPERATIONS
                Income .............................................................................................           32
                Realized Gains (Losses) ....................................................................... 33
                Expenses ............................................................................................. 34
            Net Investment Income ............................................................................ 39

            OTHER REVENUE AND EXPENSES
                ................................................................................................................ 43

                Net Income (Loss) before Income Taxes
                  and Extraordinary Items ....................................................                                 49

            INCOME TAXES
                    Current ....................................................................................               50
                    Future ............................................................................................... 51
                Total Income Taxes ...................................................................                         59
            Extraordinary Items (net of Income
              Taxes of $'000 ..........) ...........................................                                           60
            NET INCOME (LOSS) FOR THE YEAR ............................................. 89




 P&C-2                                                                                              20.30                                                    (Next page is 20.45)
 (2009)
                                  Insurer                                                                                                                                         Year

                                                                           STATEMENT OF CASH FLOWS
                                                                                   ($'000)
                                                                                                                                                                 Current          Prior
                                                                                                                                                                  Year            Year
                                                                                                                                                                  (01)            (02)
 Cash flows from (used in) operating activities:
         Net Income (loss) for the year ................................................................................................. 01
         Adjustment for:
              Decrease (increase) in Investment Income due and accrued ............................................ 05
              Decrease (increase) in Receivables ................................................................................... 06
              Decrease (increase) in Recoverables from Reinsurers, and in Other Recoverables .......... 07
              Decrease (increase) in Deferred Policy Acquisition Expenses ......................................... 08
              Future Income Tax Expense (Benefit) .............................................................................. 10
              Increase (decrease) in Unearned Premiums ...................................................................... 12
              Increase (decrease) in Unpaid Claims and Adjustment Expenses .................................... 13
              Increase (decrease) in Unearned Commissions ................................................................ 14
              Increase (decrease) in all other liabilities .......................................................................... 15
              Amortization of premises and equipment ......................................................................... 20
              Amortization of discount on Investments ......................................................................... 21
              Recognized losses (gains) on Investments ........................................................................ 22
              Fair value (gains) losses on held for trading assets ……………………………………… 23
              .......................................................................................................................................     28
         Cash flows from (used in) operating activities ..................................................................... 29

         Cash flows from (used in) investing activities:
              Term Deposits                 - (purchases) ....................................................................................... 30
                                            - proceeds on maturity/sale ................................................................ 31
              Bonds and Debentures - (purchases) ................................................................................ 32
                                                   - proceeds on maturity/sale ......................................................... 33
              Mortgage Loans - (purchases) ....................................................................................... 34
                                            - proceeds on maturity/sale ................................................................ 35
              Preferred Shares - (purchases) ....................................................................................... 36
                                            - proceeds on disposition ................................................................... 37
              Common Shares - (purchases) ....................................................................................... 38
                                            - proceeds on sale ............................................................................... 39
              Real Estate - (purchases) ................................................................................................ 40
                                  - proceeds on sale ........................................................................................ 41
              Other Investments - (purchases) ....................................................................................... 42
                                            - proceeds on sale ............................................................................... 43
              Amortization of premium on Investments ........................................................................ 50
              Other Assets & Real Estate for Insurer's own use - (purchase)proceeds on sale ... 51
              ............................................................................................................................................. 58
         Cash flows from (used in) investing activities ...................................................................... 59

         Cash flows from (used in) financing activities:
              Increase in (repayment of) borrowed money .................................................................... 60
              Transfers from (to) Head Office ....................................................................................... 65
              ............................................................................................................................................. 68
         Cash flows from (used in) financing activities ..................................................................... 69
         Increase (decrease) in cash and cash equivalents(lines 29 + 59 + 69) ............................... 79
         Cash and cash equivalents at beginning of year .................................................................. 80
         Cash and cash equivalents at end of year(line 79 + 80) ..................................................... 89

         Cash and cash equivalents at end of year consist of:
              Cash ................................................................................................................................... 90
              Cash equivalents ............................................................................................................... 91
              (Overdrafts) ....................................................................................................................... 92
 *This statement is provided as a guide only. Insurers may complete this page or
  attach a Statement of Cash Flows as prepared for the insurer's financial statements.




P&C-2                                                                                               20.52                                                                  (Next page is 20.60)
(2009)
P&C-2
(2009)




                                            Insurer                                                                                                                                            Year


                                                                                              SUMMARY OF INVESTMENTS (Vested in Trust)
                                                                                                                 ($'000)

                                                                                                             Fair Value                    Amortized     Balance    Realized     Income     Gain/(Loss)
                                                                                              Held     Available      Hedges   FV Option     Cost         Sheet   Gains(Losses) excluding     From
                                                                                               for       for                                           (01+03+05+               FV Option   FV Option
                                                                                             Trading     Sale                                            07+09)

                                                                                              (01)       (03)          (05)      (07)        (09)         (12)         (15)       (16)         (19)
                          Aggregate Holdings:
                            Deposits, Bonds and Debentures (1 year or less) …………… 01
                            Deposits, Bonds and Debentures > 1 year …………………… 02
   40.07




                            Mortgage Loans - ≤ 80% Loan to Value Ratio …………… 03
                                              - Other …………………………………… 04
                            Non-Mortgage Loans (consumer/commercial) ……………… 07
                            Preferred Shares - Debt …………………………………… 10
                                              - Equity ………………………………… 11
                            Common Shares ……………………………………………… 15
                            Investment Real Estate ……………………………………… 20
                            Other Investments …………………………………………… 30
                                Total Investments …………………………………………39

                             Foreign Pay Securities ……………………………………… 41

                          Individual Holdings:
                             Largest Exposure to an Entity or Connected Group ………… 50
   (Next page is 40.70)




                                 2nd Largest Exposure to an Entity or Connected Group … 51
                            Insurer                                                                                                                              Year



                      RECEIVABLE FROM/PAYABLE TO UNAFFILIATED AGENTS AND BROKERS
                                                ($'000)

                                                                                                                      Receivable                               Payable
                                Name of Agent or Broker                                                       In Arrears         Total                          Total

                              (01)                                                                                 (02)                       (03)               (04)
See Section VI of the Annual Return Instructions




All Others .................................................................................
Sub-Total .................................................................................. 39
Less: Allowance ....................................................................... 40
Total ......................................................................................... 49
Number of Agents and Brokers ................ 59




                                                                      OTHER RECEIVABLES
                                                                            ($'000)

                                                                     Description

                                                                           (01)                                                                                  (02)
See Section VI of the Annual Return Instructions




All Others …………………………………………………………………………………………

 Total .............................................................................................................................................   89


 P&C-2                                                                                 50.20                                                           (Next page is 50.30)
 (2009)
                         Insurer                                                                                                 Year




                                   RECEIVABLE FROM/PAYABLE TO OTHER INSURERS
                                                     ($'000)



                                                                                                      Receivable                Payable
                                 Name of Insurer                                              In Arrears         Total           Total

                                          (01)                                                  (02)             (03)             (04)

Registered




Total Registered ................................................................. 49

Unregistered




Total Unregistered ............................................................. 79
Less : Allowance ............................................................... 80

Total .................................................................................. 89




P&C-2                                                                         50.30                                      (Next page is 50.40)
(2009)
                         Insurer                                                                                                Year



                                              OTHER LIABILITIES, and
                                        UNRECOGNIZED ASSETS and LIABILITIES
                                                     ($'000)



                                                    Other liabilities
                                                                                                                                (02)


    Self-Insured Retention (SIR) portion of unpaid claims ......................................... 50
    Employment Benefits …………………………………………………………… 76
    Miscellaneous …………………………………………………………………… 88

    Total other liabilities ............................................................................................ 89


         Unrecognized assets excluding amounts reported
            on Page 70.40 …………………………………………………………… 91



         Unrecognized liabilities excluding amounts reported
            on Page 70.40 …………………………………………………………… 95




P&C-2                                                                    50.50                                                (Next page is 60.10)
(2009)
P&C-2
(2009)




                                                    Insurer                                                                                                                                                                                                                      Year

                                                                                                                                                            PREMIUMS AND CLAIMS
                                                                                                                                                                   ($'000)

                                                                                                                    Premiums Written less return Premiums                                                              Claims incurred including Adjustment Expenses
                                                                                              Number                                                                  Net Unearned   Net Unearned   Net Premiums
                                                                                             of Policies                 Reinsurance    Reinsurance     Net Written   Premiums at    Premiums at       Earned                  Reinsurance     Reinsurance     Net incurred   Claims Ratio
                                            Class of Insurance                                 in force    Direct         assumed          ceded        (01+02-03)    beginning of    end of year    (04+05-06)    Direct       assumed           ceded        (08+09-10)       (11/07)
                                                                                             at year end                                                                  year                                                                                                     %
                                                                                                 (21)      (01)             (02)            (03)            (04)          (05)           (06)           (07)       (08)            (09)            (10)            (11)           (12)

                          Property             - personal ..................... 03
                                               - commercial ............... 07
                          Property - total .................................... 09
                          Aircraft .................................................. 10
   60.20




                          Automobile           - liability ...................... 19
                                               - personal accident ....... 20
                                               - other .......................... 21
                          Automobile - total ................................ 29
                          Boiler and Machinery ............................ 32
                          Credit ..................................................... 34
                          Credit Protection ……………………… 35
                          Fidelity ................................................... 36
                          Hail ........................................................ 38
                          Legal Expense ....................................... 40
                          Liability ................................................. 59
                          Mortgage ............................................... 62
                          Other Approved Products ………………63
                          Surety ..................................................... 64
   (Next page is 60.21)




                          Title ....................................................... 66
                          Marine ................................................... 68
                          Accident and Sickness ........................... 70
                          TOTAL ................................................. 89
P&C-2
(2009)                                                    Insurer                                                                                                                                         Year



                                                                                                                       EXPENSES - INSURANCE OPERATIONS
                                                                                                                                     ($'000)

                                                                                                                                 Acquisition Expenses
                                                  Expense Classification                                       Deferred at End                Attributable to                   General                Net Internal
                                                                                                                   of Year                       the Year                       Expenses               Adjustment
                                                                                                                                        Total               Excluding   Total              Excluding    Expenses
                                                                                                                                                             Marine                         Marine
                                                                                                                    (01)                 (02)                (03)       (04)                 (05)          (06)
                          Salaries and employee benefits …………………… 50
    80.20




                          Directors remuneration ............................................. 52
                          Agency (excluding commissions) ……………………54


                          Management fees ...................................................... 60
                          Professional fees ....................................................... 62


                          Occupancy ………………………………………… 70
                          Information technology …………………………… 72
                          Inspections and Investigations ………………………74
                          Bureaus and Associations ………………………… 76
                          Home Office overhead ............................................. 78
   (Next page is 99.10)




                          Allowance ..............................................................     80
                          Regulatory assessments ............................................ 82
                          Other expenses ......................................................... 88
                          Total ......................................................................... 89

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:8/29/2011
language:
pages:29