CLHIA welcomes Supreme Court decision on Saskatchewan Court of Appeal ruling on life insurers
News ReleaseRelease Date: 11/04/2021 Staff Reference: Kevin Dorse
(Toronto, November 4, 2021) – The Canadian Life and Health Insurance Association (CLHIA) is pleased with the Supreme Court of Canada’s decision to deny leave to appeal with respect to the litigation initiated by Atwater Investment LP, Ituna Investment LP and Mosten Investment LP that targeted several life insurance companies.
These limited partnerships had sought to use life insurance contracts as deposit contracts by making deposits unrelated to the insurance coverage which the CLHIA has argued is contrary to Canada’s regulatory framework which separates banking and insurance businesses.
“We are pleased that the Supreme Court has decided not to hear these appeals which means this litigation is over,” said CLHIA President and CEO Stephen Frank.
“In recent years, provinces including Ontario, Prince Edward Island, Quebec, Alberta, New Brunswick and Nova Scotia have all passed legislation to protect consumers by further clarifying the separation of banking and insurance,” said Frank. “We are pleased that governments continue to support a clear and reliable regulatory framework for our industry and its consumers and will continue to work to have legislation updated in the remaining provinces.”
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. These insurers provide a wide range of financial security products including life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to over 29 million Canadians. They hold over $1 trillion in assets in Canada and employ more than 158,000 Canadians.
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