General Principles (Insurance Law)

Insurance Act, R.S.O. 1990, c. I.8

Authorization to Issue Insurance

42 (1) Upon due application and upon proof of compliance with this Act, the Chief Executive Officer may issue a licence to undertake contracts of insurance and carry on business in Ontario to any insurer coming within one of the following classes:

1. Joint stock insurance companies.

2. Mutual insurance corporations.

3. Cash-mutual insurance corporations.

4. Fraternal societies.

5. Repealed: 1997, c. 19, s. 10 (6).

6. Companies duly incorporated to undertake insurance contracts and not within classes 1 to 5.

7. Reciprocal insurance exchanges.

8. Underwriters or syndicates of underwriters operating on the plan known as Lloyds.

Authorization to Sell Insurance

40 (1) Every insurer undertaking insurance in Ontario or carrying on business in Ontario shall obtain from the Chief Executive Officer and hold a licence under this Act. R.S.O. 1990, c. I.8, s. 40 (1); 1997, c. 28, s. 88; 2018, c. 8, Sched. 13, s. 22.

(2) No person shall carry on business as an insurer or engage in an act constituting the business of insurance in Ontario without a licence under this Act. R.S.O. 1990, c. I.8, s. 40 (2).

(3) No insurer shall carry on business in Ontario as an insurer of a class of insurance that is not authorized by its licence under this Act. R.S.O. 1990, c. I.8, s. 40 (3).

(4) No person in Ontario shall do or cause to be done any act or thing mentioned in subsection 39 (3) on behalf of or as agent of an insurer that is not licensed under this Act. R.S.O. 1990, c. I.8, s. 40 (4).