The Canadian Life and Health Insurance Association says it is pleased with the outcome of the Saskatchewan Court of Appeal with respect to the litigation initiated by three Limited Partnerships that targeted several life insurance companies.
In 2018, the Saskatchewan government introduced regulations to clarify that life insurers are not permitted to accept deposits. The Court of Appeal found that the regulation prevents life insurance companies from accepting deposits and amounts unrelated to insurance coverage.

Association President and CEO Stephen Frank says, “In the interest of protecting consumers, many other provinces including Ontario, Prince Edward Island, Alberta, New Brunswick and Nova Scotia have introduced legislation to provide similar clarity and reinforce the separation of banking and insurance,”

iA Financial Group is also pleased with the decision. It says life insurance contracts were never intended to be used as deposit accounts and for purposes unrelated to life insurance.

Manulife Financial Corporation says, “The decision confirms that policyholders cannot make unlimited deposits into universal life insurance contracts and makes clear deposits must relate to amounts required to pay the life insurance premium.”