Croatian Fraternal Union Asset Release

Summary#

Croatian Fraternal Union of America says it will apply to the federal regulator for permission to release the assets it holds in Canada under the Insurance Companies Act (Canada). The application is scheduled for on or after November 28, 2020, and anyone who objects can file an opposition by that date.

What it does#

• The union plans to ask the Office of the Superintendent of Financial Institutions (Canada) for an order allowing the release of the assets it keeps in Canada under the Insurance Companies Act (Canada).
• People or businesses that are policyholders or creditors can oppose the release. Oppositions must be filed by November 28, 2020 by mail or by email to the regulator (contact details were provided in the notice).

Who's affected#

• Policyholders of Croatian Fraternal Union of America who hold insurance policies under its Canadian operations.
• Creditors of the union’s insurance business in Canada.
• It’s unclear from the notice whether other groups (for example, beneficiaries or provincial regulators) will be directly affected.

Why it matters#

• If the regulator allows the release, the union may be able to move or distribute the assets it holds in Canada. That could change how claims are paid or how creditor claims are handled.
• Affected policyholders and creditors have a short window to object if they don’t want the release to go ahead. The notice is signed by Patricia Dale, Chief Agent in Canada, and dated October 17, 2020.