Frequently Asked Questions

1. Does your client need to apply for Assuris protection?

It is not necessary for you or your client to apply for Assuris protection or file a claim. If your client’s life insurance company fails, Assuris will ensure that they are informed on how their respective benefits are protected by Assuris.

2. What if a company merges or transfers your client’s policies with another life insurance company?

Policy benefits that are protected by Assuris at the time of the merger or transfer continue to be protected separately after the merger or transfer.

If your client had a policy with each company prior to the merger or transfer, each policy is protected by Assuris separately. If your client discontinues their policy or makes a contractual change to the benefits covered under their policy, separate protection no longer applies.

3. If your client has policies with multiple affiliated member companies, are they protected separately for each policy?

Life insurance groups with multiple member companies can issue separate policies to a policyholder. Assuris provides separate protection for each member company. Therefore, policies held by affiliated member companies will receive separate protection.

4. How is a joint accumulation annuity protected?

A joint accumulation annuity is protected under Assuris’ Accumulated Value protection.

A joint annuity is split evenly between the joint owners. Each owner is protected up to a maximum of $100,000.

5. If my client has a joint accumulation annuity and an individual annuity, how is that protected?

All similar benefits issued by the same member company are added together before Assuris’ protection is applied.

Your client’s accumulation annuity is protected under Assuris’ Accumulated Value protection.

An accumulation annuity that is jointly owned is split evenly and added to any individually owned accumulation annuities before Assuris’ protection is applied.

6. How are joint and survivor annuities protected?

Assuris’ protection applies to the joint and survivor annuitants as a single covered person.

The joint and survivor annuity will not be added to any other monthly income benefit that the annuitant or the joint annuitant may own individually when calculating the Assuris protection.

7. How are joint life policies protected?

Assuris’ protection applies to the joint life policyholders as a single covered person.

The joint life policy will not be added to any other death benefit protection that the policyholder or the joint policyholder may own individually when calculating the Assuris protection.

8. How are structured settlements protected by Assuris?

A structured settlement pays a monthly or yearly benefit in a series of payments to the insured for the lifetime of the insured or for a prearranged duration.

Periodic payments under structured settlements are protected under Assuris’ Monthly Income protection. Assuris guarantees that your client will retain at least 85% of their monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, they will retain the full amount of their benefit.

Lump sum payments under structured settlements are protected under Assuris’ Cash Value protection. In each policy year, Assuris guarantees that your client will retain at least 85% of their lump sum payment. For policies that have a lump sum payment of $60,000 or less, your client will retain the full amount of their benefit.

9. How are Buy-In Annuities protected?

Buy-in annuities consist of a single premium paid to the member company by a pension plan in exchange for a monthly payment to the pension plan in a sum equal to the amounts paid to the pensioners. The benefits to the pensioners remain the responsibility of the pension plan. The single monthly payments are covered under Assuris’ Monthly Income protection:

  • Assuris guarantees that your client will retain at least 85% of their monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, your client will retain the full amount of their benefit.

10. How are Buy-Out Annuities protected?

Buy-out annuities consist of a single premium paid by a pension plan to the member company in exchange for monthly pensions paid directly to the pensioners. The benefits under buy-out annuities are the responsibility of the member company. Each pensioner is covered under Assuris’ Monthly Income protection:

  • Assuris guarantees that your client will retain at least 85% of their monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, they will retain the full amount of their benefit.

Therefore, there is 100% coverage for each pensioner if their monthly payment is less than $2,000 and 85% coverage if their monthly payment is more than $2,000.

11. How are benefits payable in other currencies protected?

Benefits will be continued in the currency of the policy except where impractical because of currency exchange restrictions or other difficulties unique to the currency. The currency of the policy will be the equivalent of the Canadian dollar at the exchange rate in effect when the company fails.