TORONTO, March 18, 2019 /CNW/ - The Canadian Life and Health Insurance Association (CLHIA) today welcomed the recent Saskatchewan court ruling with respect to the Ituna Investment LP, Mosten Investment LP and Atwater Investment LP litigation, that targeted several life insurance companies.
The ruling, issued on Friday, March 15, by the Saskatchewan Court of Queen's Bench, dismissed the plaintiffs' primary claims against each of Industrial Alliance, Manulife and BMO Life.
"This important ruling unequivocally supports what insurers, their customers and regulators already know to be true: the purpose of an insurance policy is to protect the lives of the insured and their families. Insurance policies are not intended to offer an unlimited investment opportunity completely unrelated to insurance coverage," said CLHIA President and CEO Stephen Frank.
The plaintiffs' scheme involved investing large amounts of money in insurance policies with the sole objective of earning a return. The ruling states in no uncertain terms that insurance policies cannot be used in this manner.
Frank added: "This ruling is firmly in the public interest and further reinforces the important division between banking and insurance that continues to be core to the legal and regulatory framework governing the Canadian financial services industry."
The CLHIA intervenes in cases which raise significant legal issues of concern to the Canadian life and health insurance industry. In the Ituna, Mosten, and Atwater cases, the CLHIA intervened because the position taken by the plaintiffs was contrary to the nature and intended purpose of the product, fundamental insurance law concepts and Canada's regulatory system.
About the CLHIA
The CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to more than 29 million Canadians. It also holds over $860 billion in assets in Canada and employs more than 155,000 Canadians.
SOURCE Canadian Life and Health Insurance Association Inc.
For further information: Susan Murray, Vice President, Government Relations and Policy, (613) 691-6002 / [email protected]