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Canada

Trading rights in Canada

Lloyd's Permissions

Licensed
Property; Accident and sickness; Aircraft; Automobile; Boiler and machinery; Credit; Fidelity; Hail; Legal expense; Liability; Marine; Title.

Local policies are required for Canada located risks

Note: 
Auto insurance (of any class) cannot be done on a multinational basis
Surety may only be written on a reinsurance basis

Doing multinational business in Canada

For insureds located in Canada: AIF Signing Process (ASPS):Any business where the risk, insured or reinsured, is located in Canada must be processed through the AIF Signing Process System (ASPS). Insurance contracts written in London for risks, insureds or reinsureds located in Canada will be replaced by a contract made in Canada via the AIF signing process.

AIF Signing Process (ASPS): This is a process whereby an insurance contract written in London in respect of risks, insureds or reinsureds located in Canada will be replaced by a contract made in Canada. The liabilities associated with the contract issued pursuant with the AIF signing process will be subject to funding requirements in Canada.

Key information

Intermediaries

Underwriters must ensure there is an appropriately licensed Canadian intermediary in the placement chain for all Canadian regulated business. Intermediaries must be licensed (not domiciled) in the provinces they are doing business in and must also be an approved Lloyd’s Open Market Correspondents (OMCs) or coverholder. E.g. a Lloyd’s broker can obtain a licence in Canada. Approval is required for OMCs handling Canadian insurance business. Provincially the coverholder must be licensed to sell each class/type of insurance they offer in each province.


Wordings

Wording requirements apply to Canadian Policies. These include "Limitation Clause" and Provincial Statutory wordings, as well as Lloyd's Canada service of suit, complaint and privacy notices, which must be added to policies. See Crystal for further detail.


Claims 

Local claims payments are permitted. A locally licensed adjuster needs to be used for all Canadian claims arising from a Canadian policy.

Disclaimer:

These country profiles and Crystal are provided for information purposes; they do not constitute solicitation of business and are not intended to be a substitute for appropriate professional advice.

Useful resources