Sun Life of Canada
Sun Life of Canada
- 2010 – LC – Sun Life Assurance Company of Canada v. Metropolitan Life Insurance Company – Judgement – Ontario – Superior Court — [BonkNote] — 8p
- Fehr v Sun Life Assurance Company of Canada – Ontario — [BonkNote]
- 2018 0905 – LC – Fehr v. Sun Life – Decision – Ontario – Court of Appeal — [BonkNote] — 73p
- Vanishing Premiums
- 10 Up until the early 1990s there was a rule stating that equities could not make up more than 25 percent of assets, yet Canadian insurers were generally well below that.
- The more conservative practices of Canadian insurers may go back to the depression, when Sun Life, the largest insurer at the time, would have been insolvent on a market value basis.
- The company was heavily invested in equities, as well as farm mortgages, and the value of these assets plunged.
- The government allowed Sun Life to use what they called “authorized values,” which were neither market nor book, but were determined in such a way as to enable the company to still appear to be solvent.
- The more conservative practices of Canadian insurers may go back to the depression, when Sun Life, the largest insurer at the time, would have been insolvent on a market value basis.
2009 – Journal of Insurance Issues – An Examination of Property & Casualty Insurer Solvency in Canada, by Anne E. Kleffner and Ryan B. Lee, 32(1): 52-77 – 27p
- The sale of par business on a vanishing-premium basis has been well established in the last few years.
- Dividend reductions can lead to unpleasant surprises, to the extent that policyholders and agents have relied on a continuation of the current dividend scale to fund the vanish year.
- Prudence and recent history suggest that vanish years should be carefully explained, and perhaps illustrated, with some margin for dividend reduction.
- Companies and agents that are service-oriented will find ways to communicate to policyholders changes in their vanish year before the arrival of a surprise announcement that more money is necessary or that the insurance program will either pay less than expected or terminate prematurely.
— Robert J. Smardon, Vice President of Individual Products for the U.S. operations of Sun Life of Canada
1992 – SOA – Life Products, rsa92v18n311 – Society of Actuaries – 22p