London Life

  • subsidiary of Winnipeg’s Great West Life group of companies
  • 2001 0630 – theglobeandmail.com – London Life settles “vanishing premium” suit, by Terry Weber – [link]
    • London Life Insurance Co. said Friday it will pay $180-million to settle a class action suit covering 500,000 clients who bought “premium offset” policies between 1980 and 1995.
    • The agreement, which still needs court approval in Ontario, British Columbia and Quebec, is the most recent in which a major North American insurer has settled with clients over the sale of contentious so-called “vanishing premium” policies.
    • The policies were designed so that the monthly premiums would disappear after a short period, provided interest rates remained level or fell. But rates jumped, leaving many customers facing premiums they didn’t expect.
    • London Life, a subsidiary of Winnipeg’s Great West Life group of companies, said the settlement includes enhanced benefits and a review process to deal with individual claims.
    • The $180-million price tag is on top of another $60-million provided to cover previous settlements, London, Ont.-based London Life said. The agreement isn’t expected to have an impact on the insurer’s financial results.