9 October 2018 13:30
iA financial Group is also involved in a dispute which involves a holder of a universal life insurance policy that claims to be able to make deposits unlimited in his contract. The case in court involves Ituna Investment. The life insurance contract has been issued by National Life, an insurer acquired by iA financial Group in 1988.
The representations have been heard by the Court of Queen’s Bench in Saskatoon, Saskatchewan, in September last. The parties are awaiting the decision of the Court, says ai.
Last week, a report of the business of short-selling Muddy Waters Research has revealed that Manulife Financial is facing a similar dispute. The report predicted that if Manulife is rejected in this case, the insurer could suffer significant financial consequences.
iA financial Group says that the position of Ituna is not based on legal terms.
“The position of Ituna would result in the use of life insurance contracts such as deposit accounts or as commercial paper, a use that is not consistent with the very nature of life insurance to which this product is not intended,” says ai by way of a press release.
The insurer maintains that its legal position is “well-founded” and expects to win the case.