Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
116 Guarantees
person other than itself the payment or repayment of any sum of
money unless
(a) the sum of money is a fixed sum of money with or without
interest on the fixed sum, and
(b) the person on whose behalf the company has undertaken to
guarantee the payment or repayment has an unqualified
obligation to reimburse the company for the full amount of
the payment or repayment to be guaranteed.
(2) Subsection (1) does not apply in respect of any indemnity
referred to in section 365.
(3) Subsection (1)(a) does not apply to a provincial life company
where the person on whose behalf the provincial life company has
undertaken to guarantee a payment or repayment is a subsidiary of
the company and is primarily engaged in insuring risks that fall
within a class of insurance that the company is authorized to insure.
1999 cI-5.1 s116
RSA 2000