UAIC policies to be assumed by Assumption

Summary#

United American Insurance Company (UAIC) says it plans to apply for permission to transfer its Canadian insurance policies to Assumption Mutual Life Insurance Company (Assumption). The application to the Superintendent of Financial Institutions (Canada) is expected to be made on or after November 28, 2022, and copies of the proposal will be available for 30 days after the notice published on October 29, 2022.

What it does#

• UAIC intends to seek approval under section 587.1 of the Insurance Companies Act (Canada) for an "assumption reinsurance" deal.
• In plain language, that means one insurer (Assumption) would take over the insurance contracts that UAIC currently manages in Canada.
• The proposed agreement and an independent actuary’s report will be open for inspection during regular business hours at UAIC’s Canadian branch office in Toronto and Assumption’s head office in Moncton for 30 days after the notice.
• Policyholders can request copies of those documents in writing from UAIC’s Chief Agent or from Assumption’s President and Chief Executive Officer.

Who's affected#

• People who hold insurance policies in Canada issued by United American Insurance Company (UAIC).
• Policyholders of Assumption Mutual Life Insurance Company (Assumption) may also want to review the documents.
• Insurance agents, claims beneficiaries, and anyone who deals with those specific policies could notice changes.
• It is not clear from the notice whether every single type of UAIC policy is included; the documents available for inspection should say so.

Why it matters#

• If the regulator approves the change, the insurer responsible for paying claims and servicing those policies would switch to Assumption. That can affect where you send claims, who answers questions, and the financial backing behind your policy.
• Policyholders have a limited time (the 30-day inspection period starting from the notice published October 29, 2022) to read the proposed agreement and the actuary’s report, and to request copies.
• This is an application for approval, not a final decision — the Superintendent must approve the transaction before it takes effect.