McKellar Structured Settlements Inc.Assuris Increases Coverage
Assuris Increases Coverage
CompCorp* Increases Monthly Income Coverage for Structures
Media Release - July 2, 2004
The Canadian Life and Health Insurance Compensation Corporation (CompCorp), a Canadian life insurance industry funded plan which insures policyholders against loss of benefits due to the failure of any Canadian licensed life insurer, recently announced that it has increased its Monthly Income Coverage for structured settlement annuities and other life insurance products providing periodic income benefits. In the event of the failure of any life insurer issuing structured settlement annuities (a remote event which has, no doubt, emboldened CompCorp to increase its Monthly Income Coverage), CompCorp would cover the failed life insurer's payment obligations to a maximum of $2,000.00 per month or 85% of a given month's payment, whichever is greater. Previously, CompCorp's Monthly Income Coverage was capped at $2,000.00.
As a result of this increase in CompCorp's coverage, which is retroactive in its effect, Claimants whose structured settlement payments exceed $2,000.00 during any given month, are now even more secure. Also, the potential exposure of Casualty Companies which elect to retain, rather than assign, ownership of large dollar value structures, is significantly reduced.
As always, structured settlements remain supported by 3 covenants to pay: (i) that of the life insurer issuing the structured settlement annuity (the 6 life insurers which currently participate in the Canadian structure market enjoy financial strength ratings ranging from A+ to AAA, as measured by Standard & Poor's), (ii) that of CompCorp (now with its enhanced coverage limits), and (iii) that of the Casualty Company (or the assignment company) responsible for making the structure payments to the Claimant.
These covenants make structures the ultimate investment for persons who have little or no risk tolerance, and, when combined with the tax-free quality of structure payments, a potent settlement tool for Claimants and Casualty Companies alike.
* CompCorp is now known as Assuris
