TORONTO, Feb. 2, 2012 /CNW/ - Today, Union of Canada Life sought court
protection under the Winding-up and Restructuring Act (WURA). All
policyholders of Union of Canada Life are protected by Assuris, the not
for profit organization that protects Canadian policyholders in the
event their life insurance company fails. For details on Assuris'
protection visit: www.assuris.ca or contact the Assuris Information Centre at 1-866-878-1225.
Assuris is working closely with the court-appointed liquidator, Grant
Thornton Limited, to ensure policyholders are transferred to another
life insurance company. Assuris anticipates that the approximately
22,000 policies with Union of Canada Life will suffer no loss of
benefits. However, if full recovery of policyholders' benefits is not
achieved in the transfer process, Assuris is committed to providing its
protection to all policyholders of Union of Canada Life.
Assuris will work with the liquidator to communicate directly with the
policyholders on how their respective benefits are protected.
Policyholders are advised to continue paying their premiums as usual to
ensure there is no interruption in their insurance coverage.
Gordon Dunning, President and CEO of Assuris, said "Union of Canada Life
was faced with unique challenges that caused the company to seek court
protection. Our analysis indicates this company had extremely high
strategic, market and operational risks and insufficient capital to
ensure the long-term viability of the company in a low interest rate
"The Canadian life insurance industry is very stable," Mr. Dunning said,
"and Canada has one of the best regulatory systems monitoring financial
institutions. The Financial Services Commission of Ontario (FSCO) has
been closely monitoring Union of Canada Life and has kept Assuris fully
informed of all developments." He added, "Assuris and FSCO's priority
has been, and continues to be, the protection of policyholders."
Union of Canada Life policyholders who have questions regarding the
coverage provided by Assuris can visit the Assuris website at www.assuris.ca or contact Assuris Information Centre toll-free at 1-866-878-1225,
which operates 7 days a week, 24 hours a day.
Founded in 1990, Assuris has protected almost three million Canadians
through three insolvencies.
For further information:
Josée Rheault, Vice President, External Relations
Tel.: 416-359-2969; Mobile: 416-829-8079; Email: email@example.com