Virginia Surety Assumption Reinsurance

Summary#

Virginia Surety Company, Inc. says it will apply for approval to have an affiliate take on the insurance risks for its policies sold in Canada. The application to the regulator is planned for on or after December 14, 2020, and a copy of the proposed agreement will be open for inspection for 30 days after this notice was published (November 14, 2020).

What it does#

• Announces an intended application to the Superintendent of Financial Institutions under the Insurance Companies Act to reinsure, on an assumption basis, all risks for Canadian policies of Virginia Surety Company, Inc., with its affiliate American Bankers Insurance Company of Florida.
• Says the application will be made on or after December 14, 2020.
• Makes the proposed assumption agreement available for inspection for 30 days after publication at the Chief Agent’s office: 34 King Street East, Suite 1200, Toronto, Ontario M5C 2X3, during regular business hours.
• Allows policyholders to get a copy by writing to the Chief Agent, Matthew Cook, at the address above, or to ask questions by calling 416‑361‑1728.

Who's affected#

• Policyholders of Virginia Surety Company, Inc. who hold policies issued in Canada.
• The affiliate American Bankers Insurance Company of Florida is named as the company intended to assume the risks.
• It is unclear from the notice whether other groups (brokers, claimants, or regulators beyond the Superintendent) will be directly affected.

Why it matters#

• If the application is approved, the affiliate would take on the insurance risks for those Canadian policies, which could change who handles and pays future claims.
• Policyholders who want to know whether their coverage, claims process, or insurer contact will change should review the proposed agreement or contact the Chief Agent, Matthew Cook, using the address or phone number above.
• The notice is a routine regulatory step announcing the planned transfer and giving policyholders a chance to see the proposed agreement before the regulator decides.