Exam 6C Practice Question 19
Study guide: Exam 6C
A P&C insurance company based in the United Kingdom plans to insure risks in Canada through a Canadian branch, writing business in Ontario and Alberta.
Which statement correctly describes its position as an insurer in Canada?
- A) It may incorporate under Ontario's statute instead, and then needs neither federal registration nor any other licence
- B) Once registered federally, it needs no provincial licence, because federal registration covers every province
- C) It must be registered federally under the Insurance Companies Act, and must also obtain a provincial licence before operating
- D) Under the Insurance Companies Act, its regulatory reporting is based on the location of the risk rather than the location of the insurance
- E) Its capital adequacy is measured by the MCT ratio of capital available to minimum capital required, like a Canadian company's
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