CANADIAN LIFE AND HEALTH INSURERS WELCOME SASKATCHEWAN GOVERNMENT'S NEW REGULATIONS CLARIFYING PURPOSE OF LIFE INSURANCE POLICIES
News ReleaseRelease Date: 10/30/2018 Staff Reference: Wendy Hope
(Toronto, October 30, 2018) -- The Canadian Life and Health Insurance Association (CLHIA) commends the Government of Saskatchewan for enacting regulations to address any public confusion that life insurance policies could be used as deposit or securities contracts. The new regulations, published yesterday, limit the amount of premiums a life insurer may receive or accept for deposit in certain life insurance policies and associated side accounts.
CLHIA member companies provide life insurance, extended health insurance benefits including prescription drug plans, pensions and retirement savings to hundreds of thousands of people in Saskatchewan. “Through these regulations, the government of Saskatchewan has taken important steps to reinforce the separation of banking and insurance which is a fundamental policy underpinning the strength of the Canadian financial system,” says CLHIA President and CEO Stephen Frank.
The CLHIA intervenes in cases which raise significant legal issues of concern to the Canadian life and health insurance industry. “We intervened in the Saskatchewan litigation as the position taken by Ituna Investment LP, Mosten Investment LP and Atwater Investment LP is contrary to the nature and intended purpose of the product, fundamental insurance law concepts and Canada’s regulatory system,” notes Mr. Frank.
"Because the public policy concern addressed by the Government of Saskatchewan is equally relevant across Canada, the CLHIA plans to request other provincial and territorial governments to take comparable regulatory steps to avoid any public uncertainty in other jurisdictions," adds Mr. Frank.
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.
For more information:
Wendy Hope, Vice President, External Relations