Gerber Life reinsurance and asset release

Summary#

This Canada Gazette page has two separate insurance notices under the Insurance Companies Act (Canada).
First, Gerber Life Insurance Company says it will apply on or after October 19, 2020 for approval to have its Canadian individual life policies reinsured (assumed) by Canadian Premier Life Insurance Company. Second, The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) applied on August 10, 2020 for permission to release the assets it holds in Canada; oppositions are due by October 31, 2020.

What it does#

• Gerber Life Insurance Company

  • Will apply to the Superintendent of Financial Institutions for approval to transfer (assume) all of its individual life-insurance risks in Canada to Canadian Premier Life Insurance Company.
  • Provides that the proposed assumption reinsurance agreement and an independent actuary’s report will be available for inspection for 30 days after this publication at the Chief Agent’s office: CAS Accounting for Insurance in Newmarket, Ontario.
  • Policyholders can request copies in writing from the Chief Agent, Colleen Sexsmith, and can ask questions by calling 1‑800‑518‑8884.

• The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg)

  • Applied to the Superintendent of Financial Institutions on August 10, 2020 for an order allowing it to release the assets it maintains in Canada.
  • Invites any Canadian policyholder or creditor who opposes that release to file an opposition by mail or by email to the Office of the Superintendent of Financial Institutions on or before October 31, 2020.

Who's affected#

• Holders of individual life-insurance policies originally issued in Canada by Gerber Life Insurance Company. These policyholders may see their contracts, claims handling, or financial backing transferred to Canadian Premier Life Insurance Company if the approval is granted.
• Policyholders and creditors of The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) with interests in Canada. They can oppose the requested release of Canadian-held assets.
• It is not clear from the notice how many policyholders or how large the asset amounts are.

Why it matters#

• For Gerber Life policyholders, an assumption reinsurance means another company would take on responsibility for your policy. That can affect who you contact for claims, how claims are processed, and the financial backing behind your policy. You can inspect the proposed agreement and the actuary’s report and ask questions before the application is made.
• For people or businesses with claims against or balances with the Shipowners’ Association, allowing the association to release its Canadian assets could reduce what is available to pay Canadian creditors or claimants. The notice gives a clear deadline (October 31, 2020) to file an opposition.