Regulations for unlicensed insurers

Regulations for unlicensed insurers

If a person in Saskatchewan purchases insurance from an unlicensed insurer, Part XVII of The Saskatchewan Insurance Act (the “Act”) requires a report to be filed and a tax of ten percent of the premium to be submitted to the Saskatchewan Superintendent of Insurance, according to the following rules:

• Where the insurance from an unlicensed insurer is purchased through a licensed insurance broker or agent, the broker or agent must submit the report and tax within ten days after the end of the month;
• In all other cases, the Act requires the report and tax to be submitted “forthwith” upon entering the contract. The Superintendent of Insurance has generally considered thirty days from the date on which the contract was entered into as an acceptable time period to provide the return and tax.

In cases where an unlicensed insurer refunds part of a premium to an insurance agent, an insured person is entitled to a proportionate refund on the tax paid.