Union of Canada Life Insurance | Information for policyholders

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.


Continued operations

The Liquidator will manage the Company, which will continue its operations from its head office in Ottawa, Ontario.


Policyholders are protected by Assuris—the Canadian Life and Health Insurance Compensation Corporation

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.


Payment of claims and benefits

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:


  1. Periodic payments—annuities. If you are receiving regular periodic annuity payments, you will continue to be paid in full without interruption. Once the Company’s assets and liabilities have been assessed, it may be necessary to make an adjustment to your subsequent periodic payments.
  2. Death and accidental death and dismemberment claims. If you are a policyholder with proper, undisputed claims for payment of death benefits, these will be paid to a cumulative limit of the applicable Assuris protection per life insured for all claims, combined. Such payments will be treated as payments on account of your claim in the liquidation of the Company. Once the Company’s assets and liabilities have been assessed, it may be necessary to make an adjustment to your subsequent periodic payments. This may include receiving additional payments on account of your claim.
  3. RRIFs. If you are receiving regular periodic payments under a RRIF, you will continue to be paid in full without interruption. Further, the Liquidator will increase any payments needed to meet the minimum withdrawal levels required of RRIF holders, for tax purposes. However, it will not be possible to increase the amount of the periodic payments beyond the increases required for tax purposes. Once the Company’s assets and liabilities have been assessed, it may be necessary to make an adjustment to your subsequent periodic payments.
  4. Long- and short-term disability. If you are receiving periodic payments in respect of long-term or short-term disability benefits, these will continue to be paid in full without interruption. Such payments will be treated as payments on account of your claim in the liquidation of the Company. Once the Company’s assets and liabilities have been assessed, it may be necessary to make an adjustment to your subsequent periodic payments.
  5. Health and sickness benefits. If you are receiving non-recurring type payments such as claims for the payment of health, sickness or similar benefits, all proper, undisputed claims will be paid up to a cumulative limit of the applicable Assuris protection per eligible claimant. Such payments will be treated as payments on account of your claim in the liquidation of the Company. Once the Company’s assets and liabilities have been assessed, it may be necessary to make an adjustment to your subsequent payments.

Premium payments and transfer of policies

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.


Maturities, redemptions and surrenders

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.


Policy loans

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.


Participating policies—dividends

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.


Further information

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.


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