Bill 20 explained in plain English
Insurance Amendment Act (Life Loans), 2018
Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Legislative Assembly of Ontario snapshot for 41st Parliament, 3rd Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill 20, the Insurance Amendment Act (Life Loans), 2018, proposes to amend the Insurance Act to allow for life insurance policy assignments for loans under specific conditions, including a 36-month holding period and a 10-day cooling-off period, with oversight by the Financial Services Commission of Ontario.
This bill, titled the Insurance Amendment Act (Life Loans), 2018, proposes changes to the Insurance Act in Ontario. It aims to create an exception to the current rule that prohibits individuals other than insurers or their agents from trading or dealing in life insurance policies. The proposed changes would allow for the assignment of a life insurance policy for the purpose of obtaining a loan against it, provided certain conditions are met. These conditions include the policy being held by the original policyholder or a related person, or being donated to a registered charity. If held by the original policyholder or a related person, the policy must have been held for at least 36 months. The person or entity receiving the assignment and providing the loan must meet prescribed requirements. Additionally, the agreement for the assignment must be in the prescribed form and manner. The bill also introduces a 10-day "cooling-off" period, during which the agreement to assign a life insurance policy can be cancelled. The Financial Services Commission of Ontario would be responsible for overseeing these transactions to ensure consumer protection.
- Amends the Insurance Act to create an exception for life loans.
- Allows for the assignment of a life insurance policy for the purpose of obtaining a loan.
- Establishes conditions that must be met for the exception to apply.
- Introduces a 10-day cooling-off period for agreements to assign a life insurance policy.
- Requires the Financial Services Commission of Ontario to provide oversight for these transactions.
- Amends Section 115 of the Insurance Act.
- Amends Section 121 of the Insurance Act regarding prescribed matters and oversight.
- Original policyholders of life insurance.
- Persons or entities providing loans against life insurance policies.
- Charities registered under the Income Tax Act (Canada) if policies are donated.
- The Financial Services Commission of Ontario.
- Right for original policyholders or related persons to cancel an agreement to assign a life insurance policy within 10 days.
- Obligation for the assigning party and the loan provider to meet prescribed requirements.
- Obligation for the Financial Services Commission of Ontario to provide oversight for consumer protection.
- This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.
- The bill allows for loans to be made against life insurance policies, which may have financial implications for those involved.
- The bill refers to the Income Tax Act (Canada) in relation to policyholders and charities, but does not directly amend the Income Tax Act.
- The bill does not specify penalties for non-compliance, but refers to prescribed requirements and oversight by the Financial Services Commission of Ontario, suggesting that enforcement mechanisms would be detailed in regulations or through the Commission's mandate.
- The specific "prescribed requirements" for the person or entity receiving the assignment and lending against the policy, and the "prescribed manner and form" for the agreement, are not detailed in the bill text and would be set out in regulations.
- The bill does not explicitly define 'related person' for the purposes of this exception, referring to the Income Tax Act (Canada) for this definition.
- The exact date of commencement is not specified, as it is subject to proclamation.
This bill amends Section 115 of the Insurance Act to introduce new subsections that permit the assignment of life insurance policies for loans under specific conditions, and also amends Section 121 to allow for the prescription of certain requirements and governing oversight.
Source: Section 1 and Section 2
Adds new subsections that outline the conditions under which an assignment of a life insurance policy for a loan is permitted, including a minimum holding period and requirements for the lender and the agreement, and establishes a 10-day cooling-off period for such agreements.
Source: Section 1
Adds new paragraphs that enable regulations to be made concerning matters prescribed in the new provisions of Section 115 (life loans) and concerning the oversight role of the Commission.
Source: Section 2
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textProcess Snapshot
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
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Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced