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British Columbia (B.C.)
Marsh Canada Limited
Head of Office: Stephen B. White
Sales Coordinator: N/A
Office and Mailing Address
Marsh Canada Limited
550 Burrard Street, Suite 800
Vancouver, British Columbia
Canada
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Telephone: (604) 685-3765
Facsimile: (604) 685-3112 |
General Information
| Location |
British Columbia is the western-most province of Canada (Pacific Standard Time). |
| Accessibility |
Vancouver is serviced by regular daily flights from all parts of North America, Europe and the Far East. |
| Applicable Legislation |
The Insurance (Captive Company) Act was passed in 1987. |
| Number of Captives |
17 as of 31-Dec-2008 |
| Regulatory Agency |
Ministry of Finance & Corporate Relations
Superintendent of Insurance and International Financial Business |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Single Parent and, Association Captives |
| Acceptable Corporate Forms |
Stock Corporation |
| Permitted Business |
Property, Casualty and Liability lines of business. No personal lines. |
Direct Insurance Permitted |
Yes - However, B.C. captives are not admitted in other Canadian provinces, so generally the only direct premiums will be for local B.C. risk. Premiums from other parts of Canada are generally fronted. |
| Reinsurance Permitted |
Yes |
| Policy Form and Rate Approval |
Not required |
| Local Office Requirement |
Registered office |
Capitalization & Solvency Requirements
| Minimum Paid-In Capital |
$200,000 |
| Solvency Margin |
The captive must maintain reserves of at least $100,000. In effect, the solvency requirement is Capital + Surplus of $300,000. |
| Premium Taxes |
B.C. Premium tax, generally 4%, is payable on direct written premiums on BC risks. Fronted premiums pay no B.C. premium tax but are subject to premium taxes in the jurisdiction of the fronted policy or policyholder - for other Canadian provinces this is generally 3%.
Premiums from Ontario, Quebec and Newfoundland are also subject to Provincial sales tax 8%-12%.
Reinsurance premiums from outside Canada will be subject to appropriate local taxes e.g., in the U.S. this may include premium taxes, self-procurement taxes and Federal Excise Tax.
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| Intercompany Loans |
Permitted - the Captive Act is silent. |
| Investment Restrictions |
There are no statutory restrictions on investments held by captives |
| Taxation |
British Columbia captives are Canadian residents for tax purposes and subject to full federal and provincial income tax - generally a combined rate of 44%. As an insurance company, a captive is allowed to deduct loss reserves on a discounted basis. Income generated from outside Canada may be exempt from the provincial portion of the tax but will still pay the 28% federal tax. In addition, Canada has a network of tax treaties with many countries. |
| Reporting Requirements |
GAAP
Audited Financials
B.C. captives are required to undergo an independent audit each year and loss reserves must be substantiated by an actuarial certificate.
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