OTTAWA, Nov. 13 /CNW/ - MD Physician Services Inc (MDPSI) today announced its subsidiary, MD Insurance Agency Limited (MDIA) has entered into distribution agreements with leading national insurance companies, including Canada Life and Industrial Alliance Insurance and Financial Services Inc (Industrial Alliance), to expand the permanent life insurance offerings available to physician member clients through MD advisors.
Additionally, under an assumption reinsurance agreement with Industrial Alliance Insurance and Financial Services Inc. and subject to ministerial and governance approval, MD Life Insurance Company will reinsure the entire in-force block of MD Life Plan universal life policies with Industrial Alliance. Upon the completion of the transaction, Industrial Alliance, which has been acting as the back office administrator for the universal life product since 1998, will assume all policyholder obligations and administration duties. For the existing MD Life Plan universal life policyholders, little will change.
"I believe this deal strengthens our competitive position in our insurance offering and supports our strategy of being Canada's leading advisor to physicians," said Brian Peters, President and CEO of MD Physician Services Inc. "This expansion ensures we remain at the forefront in addressing the current and future insurance needs of our clients."
Under the agreement, MD Life will continue to manufacture the Group Annuity policy MD Stable Income Fund (MDSIF). MDSIF will continue to be distributed by MDIA, a subsidiary of MDPSI, and be managed by Industrial Alliance.
MD Life Insurance Company will discontinue sales of its universal life insurance product on December 22, 2009. Between now and this date, MD Insurance Advisors will continue to offer MD Life universal life policies or, as appropriate, offer clients the additional choice of permanent life insurance products through other carriers.
Further information and details will be mailed to policyholders shortly.
MDPSI is a Canadian Medical Association company comprised of seven subsidiary companies in wealth management and practice management. MDPSI, with assets under administration of more than $24 billion as of Sept. 30, 2009 is dedicated to serving the financial and practice needs of physicians. More information can be found at md.cma.ca.
SOURCE MD Physician Services Inc.
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