On February 2, 2012, the Ontario Superior Court of Justice, ordered the winding-up of Union of Canada Life Insurance (the “Company”) and appointed Grant Thornton Limited as liquidator (the “Liquidator”). A copy of the orders winding-up the company and appointing the Liquidator can be found on the page containing relevant court and legal documents associated with this proceeding.
The purpose of this Web page is to give policyholders a brief overview of the present status of operations and the anticipated effect of recent events on policyholders and annuitants, generally, of the Company.
The Liquidator will manage the Company, which will continue its operations from its head office in Ottawa, Ontario.
Assuris, the not for profit organization that protects Canadian policyholders in the event their life insurance company fails, has agreed to provide its protection to policyholders of the Company. We encourage you to review your policy. For details on Assuris’ protection visit: www.assuris.ca or contact the Assuris Information Centre at +1 866 878 1225.
Until a plan for dealing with the Company’s policies and outstanding claims is finalized, the following arrangements have been put in place to permit the Liquidator to continue payments in the ordinary course to as many policyholders and annuitants as possible:
You should continue to pay your premiums payments when due. In the case of premium payments which are automatically withdrawn from your bank account, these withdrawals will continue to be made.
The Liquidator is working closely with Assuris to transfer the Company’s business to another life insurance company as soon as possible. Every effort will be made to transfer all the policies under terms and conditions similar to those to which they are presently subject. You should continue to pay your premiums to ensure that you are eligible for Assuris’ protection. If you fail to pay your premiums, you will not be eligible for Assuris’ protection and transfer to a new insurer.
Please note that benefits may be available to you under your policy which cannot be replaced if you terminate your policy. For this reason, we believe it is in your interest to continue to pay your premiums when due.
You will receive a refund of premiums if your policy is transferred to another insurance company for less than the amount of your current policy. The amount refunded will be proportionally adjusted to reflect the reduction in the value of your policy.
As a result of the present circumstances, the Liquidator has for the time being, suspended payment in respect of any matured instruments, redemptions, surrenders or any other requests to receive the cash value of a policy. However, a hardship committee has been established to review requests for payments based on the urgent and necessary cash requirements of individuals who may have special circumstances resulting in hardship if no payment is made. The committee will require evidence to confirm the nature and extent of the hardship in each case. Policyholders and claimants finding themselves in such circumstances should call the appropriate number listed to the right.
If your contract matures or comes up for renewal during this period, you may exercise your rights under your contract to choose a new renewal period.
The Liquidator will not, for the present time, process any requests for policy loans. If you have a loan, you must continue to make your regular payments. Again, the hardship committee will consider exceptions for hardship cases. Automatic premium loan provisions in policies will continue to operate.
Under the present circumstances, the Company cannot declare dividends on participating life insurance policies. Dividends will be calculated for the purposes of the Company’s records, according to the Company’s dividend scale in effect at February 2, 2012. This will be included in your policy statement. If your policy is transferred to another insurance company, that company may or may not reinstate dividends.
We will use our best efforts to keep you advised as information becomes available. In the meantime, if you have any questions, please call the appropriate numbers listed to the right of this page. Please have your policy number and personal identification with you when making such calls.
We expect to receive a number of inquiries and we may not have all of the information on your specific policy available immediately when you call, so your patience and understanding is greatly appreciated.