A court in Saskatchewan has ruled in favor of Manulife Financial Corp. and iA Financial Group in a pair of lawsuits centered on using life insurance contracts as deposit accounts.
Mosten Investment LP had sued Manulife, claiming that it could deposit unlimited premium payments into the side accounts and be guaranteed at least 4% in annual interest because of an insurance contract signed in 1997. Ituna Investment LP, meanwhile, had filed suit against iA Financial making similar claims that the insurer could not impose limits on how it used the accounts.
The companies said they welcomed the court's ruling, which dismissed the claims against both companies.
The two insurers reiterated that life insurance policies were never intended to function as deposit or securities contracts.