(1) There must be a contract or undertaking by one person to indemnify another.

(2) There must be an agreed to consideration for benefits for whole or part of medical or dental expenses. A consideration means either premium or deposits into the plan (pre-payments)

(3) Regular premiums or deposits are to be made towards unanticipated claims. Income Tax Ruling ATR-8 (May 12, 1986).

(4) Only Hospital, Supplemental Healthcare, and Dental claims can be paid out of the PHSP plans.

(5) Claims have to be adjudicated to ensure proper payments, under section 118 (2) and/or IT519 qualify.

(6) Effective January 1, 2004, all plan providers must adhere to the "Privacy Act of Canada" Pacific First has adhered to the principles of this new act since inception on January 2001.

Mandatory:

Every eligible employee must be offered benefits to be in compliance with the equivalency rules.

 * Special consideration must be met for Cost-Plus plans under these agreements.