Bill 162, introduced in the Ontario Legislature on October 3,
2017, will amend section 115 of the Insurance Act to allow
life insurance policyholders to sell their policy so long as they
meet certain requirements under the Act.
Previously, only licensed insurers or their authorized agents
could sell life insurance policies. The proposed rules allow an
insurance policy to be sold if the policy is held by the original
policyholder, or the original policy holder and a related person
under the Income Tax Act (Canada), and if the person who
purchases the policy meets prescribed requirements (which have yet
to be defined).
The move is likely to have interesting estate and tax
implications if policyholders can sell the policy prior to death.
The Bill's sponsor, MPP Mike Colle, said: "if passed, this
bill would allow Ontario seniors to do what they can do all over
the United States... that is... at a certain time in their life
they have the option to sell their life
