CLHIA-ACCAP - Consumer Information

A guide to life insurance

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37 CONSUMER PROTECTION Assuris protects Canadian policyholders in the event that their life insurance company should fail. It provides coverage for life insurance policies. Assuris guarantees that policyholders will retain up to $200,000 or 85% of the promised death benefit, whichever is higher. If the policy includes a savings or cash value component, Assuris guarantees that the policyholder will retain up to $60,000 or 85%, whichever is higher. For more information contact the Assuris Information Centre at 1-866-878-1225 toll free, or see the Assuris website at www.assuris.ca. What is Assuris and how does it protect the consumer? Most life and health insurance companies that operate in Canada are regulated for solvency by the federal government through the Office of the Superintendent of Financial Institutions. The Autorité des marchés financiers performs the same functions for companies incorporated in Quebec. These regulators inspect companies to assess their safety and soundness. In addition, the companies must submit annual financial statements to the regulators. Provincial government agencies regulate the licencing and conduct of agents, contractual matters and issues relating to consumer service or complaints. What is the role of government regulators? If you belong to a group plan that provides life coverage, the group sponsor (typically an employer, union or association) chooses your insurer. If you decide to buy individual life coverage, there are many sources of informa- tion about companies that offer it. Rating agency reports, articles from the business press and annual reports from the companies themselves - available at public libraries or on the Internet - can all provide useful insights. Your agent or broker also can be an excellent source of information about a company. References from family members, friends and trusted advisors are probably the best basis for making a decision, though. How do I choose an insurance company?

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