iA Financial Group comments on favourable decision in the Ituna litigation
iA Financial Group (Industrial Alliance Insurance and Financial Services Inc.) is pleased to advise that in a decision released on Friday March 15, the Saskatchewan Court of Queen’s Bench dismissed, in its entirety, the application commenced by Ituna Investment LP (Ituna) against the Company.
As part of this litigation, Ituna was seeking to make unlimited deposits into a universal life insurance contract that it purchased from a policyholder. In his decision, Justice Scherman found that Ituna’s position was inconsistent with the language and the purpose of the contract.
iA Financial Group has always maintained that the position taken by Ituna was legally unfounded and that life insurance contracts were never intended to be used as deposit accounts and for purposes unrelated to life insurance.
The Canadian Life and Health Insurance Association (CLHIA) also welcomed the decision. The CLHIA stated in their press release of this morning that this important ruling is firmly in the public interest. The CLHIA noted that it intervened in the litigation because the position taken by the applicants was contrary to the nature and intended purpose of the product, fundamental insurance law concepts and Canada’s regulatory system.
iA Financial Group is currently analyzing the full details of the decision and will provide further comments if necessary.
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