Gerber Life seeks release of Canadian assets

Summary#

Gerber Life Insurance Company gave notice (published June 26, 2021) that it plans to ask the federal regulator for permission to release the assets it keeps in Canada. People who hold policies or are creditors with claims against the company in Canada were invited to object by July 26, 2021.

What it does#

• Asks the Superintendent of Financial Institutions (Canada), under section 651 of the Insurance Companies Act (Canada), for an order authorizing the release of assets that Gerber Life Insurance Company maintains in Canada.
• Invites any policyholder or creditor with respect to the company’s Canadian insurance business to file an opposition by mail or email on or before July 26, 2021.
• Gives the contact for objections as the Office of the Superintendent of Financial Institutions (Canada) (Regulatory Affairs Division) at 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email at approvalsandprecedents@osfi-bsif.gc.ca.

Who's affected#

• Policyholders of Gerber Life Insurance Company in Canada.
• Creditors with claims related to Gerber Life Insurance Company’s insurance business in Canada.
• It is not clear from the notice whether other groups (for example, insureds outside Canada or employees) are affected.

Why it matters#

• If the regulator allows the release of assets, it could change how the company handles funds it keeps in Canada.
• Policyholders and creditors have a limited window (until July 26, 2021) to raise objections that the regulator will consider before deciding.
• If you have a policy or a claim with Gerber Life Insurance Company in Canada, you may want to review this notice and consider whether to contact the regulator.