In Canada on TRV applying for Spousal Sponsorship

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Subject: In Canada on TRV applying for Spousal Sponsorship
  Hi, my wife and I have been reviewing the application packages and guides from the CIC site but am confused on one point. I am a Canadian born citizen. She has come here twice previously on a visitor visa and gone home and is now here on her third visitor Visa which is set to expire in May. We were married in Canada legally on December 8th and are about to apply for Spousal Sponsorship from within Canada as we found out she is pregnant. I can not afford the unpaid leave from my job to visit her and my baby in her country. This is why we are applying from within Canada. The question is does she need to apply to extend her stay in Canada? The guide for spousal sponsorship simply says she can stay in Canada until she receives an answer on the first stage of application for PR. So does that mean they will automatically put in their system she is under process of PR or do we need to also apply to extend her stay? The CIC site doesn´t mention this circumstance.

Another question I have is relating to medical coverage once we receive the letter back from CIC declaring the start of our processing is that what we give to BC Medical for qualifying as a "deemed resident" for MSP enrollment?
Personally I find the medical coverage situation extremely distasteful if you are legally married then the coverage as my dependent spouse should be guaranteed with the BC marriage certificate. That was a real eye opener for me.

Thanks in advance for your help.

[31-03-2012,20:11]
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