Sun Life to Reinsure Policies to Canadian Premier

Summary#

Sun Life Assurance Company of Canada says it will apply to the Superintendent of Financial Institutions on or after February 1, 2023 to have Canadian Premier Life Insurance Company take on (reinsure on an assumption basis) a range of Sun Life’s insurance risks issued in Canada. Policyholders can inspect the proposed agreement and an independent actuary’s report for 30 days after the notice was published (December 10, 2022) and can request copies or ask questions.

What it does#

• Sun Life intends to apply for approval under subsection 254(3) of the Insurance Companies Act to transfer risk to Canadian Premier Life on an assumption reinsurance basis.
• The transfer would cover all of Sun Life’s creditors’ group insurance and association and affinity group and individual insurance risks issued in Canada.
• Policyholders can inspect the proposed assumption reinsurance agreement and the independent actuary’s report at Sun Life’s offices at 1 York Street, Toronto, Ontario, during regular business hours for 30 days after publication (December 10, 2022).
• Policyholders may request copies in writing (by email to SunLifeSMTransaction@sunlife.com or by mail) or call Sun Life’s toll-free line at 1‑800‑669‑7921 (Monday to Friday, 8:00 a.m. to 8:00 p.m. EST) with questions.

Who's affected#

• Policyholders of Sun Life Assurance Company of Canada who hold creditors’ group insurance, association and affinity group insurance, or individual insurance issued in Canada.
• It is unclear from the notice whether every individual policyholder will see immediate changes; the transfer depends on regulatory approval after the application.

Why it matters#

• If approved, the other insurer would take on the liability for these policies. That can change who handles claims, customer service, and the business relationship you have for an existing policy.
• Policyholders have a chance to read the proposed agreement and the actuary’s report and to ask questions before the application is made.
• This is an application for approval, not a completed transfer; final effects depend on the Superintendent’s decision.