difference between Federal and Canadian regulation

okamumokamum
in McD.Intro

The CIRCA-F question from Baer.Intro appeared twice on previous exams and you can recognize it because the question asked about Canadian regulation or legislation. But the CIRC-P questions all specify federal regulation.

I guess I can memorize the difference summarized here in the particular question, but is a bit confused between the difference in terms of federal versus Canadian? Aren't they the same thing? Or does one of them belong to another?

Comments

  • okamumokamum

    I think I understand it now, seems that Canadian legislation includes both federal & provincial, as stated in the Baer.Intro reading later!

  • lukia6c25splukia6c25sp

    So the two points in highlight are deferal only. Does it mean the other 4 points are provincial?

  • grahamgraham

    We are looking into this. Apologies for the delay in answering.

  • Staff-TSStaff-TS
    edited April 14

    Sorry for missing this @lukia6c25sp.

    The distinction between federal and provincial regulation and legislation in Canada isn't always clear-cut, as the two levels of government often have interrelated responsibilities when it comes to insurance.

    • Rating bureau: I believe this falls under provincial legislation.
    • Creation of domestic and licensing of foreign insurers: Oversight of the creation of domestic insurers and licensing of foreign insurers is primarily a federal responsibility through OSFI, but provinces can also license insurers that operate solely within their jurisdiction.
    • Require regular reporting of F/S: Reporting of financial statements is a federal requirement for federally regulated insurers, handled by OSFI, but provinces may also require certain reporting from all insurers operating in their jurisdiction.
    • Compliance: This point is vague, and I think by design. Generally, OSFI has this power at the federal level. However, superintendents in each province may have this power but the material doesn't discuss this point at that granularity.
    • Limit types of investments that are permitted: McD indicates this is an area of federal insurance regulation.
    • Rate adequacy: Rate regulation and oversight typically happen at the provincial level in Canada.
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