CLHIA welcomes favourable ruling from Saskatchewan Court of Appeal for life insurers
News ReleaseRelease Date: 03/10/2021 Staff Reference: Kevin Dorse
(Toronto, March 10, 2021) – The Canadian Life and Health Insurance Association (CLHIA) is pleased with the outcome of the Saskatchewan Court of Appeal with respect to the litigation initiated by Atwater Investment LP, Ituna Investments LP and Mosten Investment LP that targeted several life insurance companies.
In 2018, the Saskatchewan government introduced regulations to clarify that life insurers are not permitted to accept deposits. In a decision released today, the Court of Appeal found that the 2018 regulation prevents life insurance companies from accepting deposits and amounts unrelated to insurance coverage.
“In the interest of protecting consumers, many other provinces including Ontario, Prince Edward Island, Alberta, New Brunswick and Nova Scotia have introduced legislation to provide similar clarity and reinforce the separation of banking and insurance,” said CLHIA President and CEO Stephen Frank. “Millions of Canadians rely on the life and health insurance industry to provide life, disability, and health insurance as well as for their pensions and retirement savings. We are pleased that governments continue to support a solid regulatory framework that protects consumers and allows the industry to serve Canadians.”
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 nearly $950 billion in assets in Canada and employ more than 157,000 Canadians.
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