Gore Mutual Shift to Quebec Rules

Summary#

This bill lets Gore Mutual Insurance Company ask to “continue” (a legal move that keeps the same company but changes which law governs it) under Quebec law. It creates a one-company exception to a federal rule that otherwise blocks this move. If Quebec approves, the company will no longer be governed by the federal Insurance Companies Act, and three old federal private Acts about the company will be repealed (Authorization; Effect of continuation; Repeals).

• Authorizes the company to apply for continuance under Quebec law despite subsection 39(5) of the Insurance Companies Act (Authorization).
• The move is not automatic; Quebec must accept the application (Authorization).
• On the day of continuance, the company stops being governed by the federal Insurance Companies Act (Effect of continuation).
• On that same day, earlier federal private Acts for the company are repealed (Repees).
• The company’s policyholders previously approved the plan by a two‑thirds vote (Preamble (h)).

What it means for you#

• Households (Gore Mutual policyholders):

  • No direct changes to your premiums, coverage, or claims handling appear in the bill text (Data unavailable in the bill).
  • If Quebec approves the continuance, the company will be governed by Quebec law instead of the federal Insurance Companies Act, starting on the day of continuance (Effect of continuation).
  • The bill itself adds no new notice, consent, or protection measures for policyholders during the transition (bill is silent).

• Workers at Gore Mutual:

  • The bill does not mandate job changes, relocations, or employment terms (Data unavailable in the bill).
  • Internal governance and compliance rules would shift to Quebec law if the continuance occurs (Effect of continuation).

• Brokers and business partners:

  • The bill does not change contracts or licensing on its face (Data unavailable in the bill).
  • Corporate governance would shift to Quebec law only if Quebec approves the application (Authorization; Effect of continuation).

• Federal and provincial governments:

  • The bill removes the federal Insurance Companies Act as the governing law for this company upon continuance (Effect of continuation).
  • Three historical federal Acts about the company are repealed on that same day (Repeals).

• Timing:

  • The bill authorizes the company to apply now. It takes full effect for governance only on the day Quebec grants continuance (Authorization; Effect of continuation).

Expenses#

Estimated net cost: Data unavailable (no appropriations, fees, or taxes identified in the bill).

• No fiscal note identified.
• The bill contains no direct appropriations, taxes, fees, fines, or mandated spending (bill text reviewed).
• It authorizes a corporate legal change for one company; any administrative costs to process the application are not specified (Data unavailable).

Proponents' View#

• Enables a lawful path to Quebec continuance that the federal Insurance Companies Act would otherwise block (Authorization; Preamble (i)).
• Respects member governance, since policyholders approved the plan by a two‑thirds vote (Preamble (h)).
• Limited scope: applies only to Gore Mutual and does not force continuance; Quebec must approve (Authorization).
• Clean legal transition: on continuance, old special federal Acts are repealed, avoiding overlapping rules (Repeals).
• No direct public spending or new taxes in the bill text (bill text reviewed).

Opponents' View#

• Erodes uniform federal oversight for this insurer by removing the Insurance Companies Act as the governing law upon continuance (Effect of continuation).
• Creates an ad hoc exception to subsection 39(5) for one company, which some may view as uneven rulemaking (Authorization).
• Lacks transition safeguards in the text for policyholders (for example, notice or protection clauses), leaving details to other laws or regulators (bill is silent).
• Implementation risk: the bill authorizes an application but does not guarantee Quebec will approve; outcomes remain uncertain until a decision is made (Authorization).