incorporating vs licensing
What is the difference between these two terms? The confusion comes from looking at the answer keys for questions about the insurance reference case:
Spring 2018 #1 : The federal parliament required insurance company to incorporate federally if it wants to
operate in more than one province.
Fall 2015 #2 part b): The case was based on the federal government believing that provincial insurers had to be
**federally licensed **to operate in a province outside where it is incorporated.
Comments
Being incorporated federally means the creation of a company. Being federally licensed means you obtain permission from the regulatory authorities to carry out a certain business
Did the federal government require an insurance company to incorporate federally or for an insurance company to obtain a federal license?
Obtain a federal license. When reviewing past years, you need to read the whole answer key to spring 2018 b), not just the first sentence. It specifically says the AG of Alberta challenged the requirement to be incorporated federally to operate in another province
Hi @Staff-T1,
As you said above, the case is about being licensed.
Why does the solution refer challenging being incorporated federally? Why challenge the requirement to be incorporated instead of challenging to be federally licensed?
Thanks,
Andrew
It's more of before you can obtain a license, you need to be incorporated - And where you are incorporated, determines where you are able to obtain a license. They are all linked