Legal matters
Participating account court action update
The February 3, 2014 Court of Appeal decision reducing the amount to be reallocated to the participating account surplus from $57.1 million to $24.6 million is now final. The Court ordered notice reporting on the final outcome of the case can be found at the link below:
Court Approved Notice Opens in a new website
About participating life insurance
At Great-West Life, we believe participating life insurance offers consumers important advantages and choice as part of a sound financial security plan. We are committed to maintaining choice and flexibility for clients and financial security advisors.
Learn more about participating life insurance.
Questions and answers
What is this about?
The lawsuit challenged the involvement of the participating account in the financing of the acquisition of London Insurance Group in 1997.
- The court proceedings relating to the main issues have concluded. The Court has approved a form of notice Opens in a new website to class members reporting the outcome of the proceedings.
The monies returned to the participating accounts in accordance with the final Court decision will be dealt with in accordance with the company’s participating policyholder dividend policy in the ordinary course of business.
The decision will have no impact on participating policy contract terms or conditions.
Our Company is committed to participating insurance and we intend to continue to focus on excellence in managing and growing our participating business. We believe our continuing focus on participating insurance will serve both existing and new policyholders well.
Who qualifies as a member of the class?
All persons who held a participating life insurance policy of The Great-West Life Assurance Company between November 1997 and October 1, 2010, the date of the trial judgment qualify as a member of the class.
What is the remaining court process and how long will that take?
The Court issued its decision on August 31, 2016 relating to the issues of legal costs, legal fees to be paid to class counsel, and a levy claim by the Ontario Class Proceedings Fund. That decision is now under appeal. There is also another issue related to costs that is being disputed. The issues relating to costs will not be final for some time.
Does this lawsuit affect my policy with Great-West Life?
The decision will have no impact on participating policy contract terms or conditions.
The monies returned to the participating account will be dealt with in accordance with the company’s participating policyholder dividend policy in the ordinary course of business. No awards are to be paid out to individual class members.
If you are not a participating policyholder, the court action will not have any impact on your contract with us as it relates only to the participating life insurance business of the Company.
Does this lawsuit impact the strength and stability of Great-West Life?
Our Company remains secure financially, as indicated by the strong ratings we have received from major ratings agencies.
We will continue to manage our affairs in a prudent and conservative manner.
Does this lawsuit impact the strength and stability of the participating account?
No, this decision will not impact the strength and stability of the participating account. The Great-West Life participating account is strong and will continue to operate normally.
At Great-West Life, we believe in participating life insurance and know the value it has delivered to participating policyholders over the years. Great-West Life is committed to excellence in participating life insurance.
I have questions about my insurance; is there an independent organization I can talk to?
We are a member of the OmbudService for Life & Health Insurance. This independent service helps consumers with questions and concerns about life and health insurance products and services.
Who can provide more detail about the lawsuit?
Participating policyholders looking for more information about the lawsuits can read the court approved notice and also go to the website for the lawyers for the class www.parpolicyclassaction.com
The Company and its representatives may continue to deal with all clients and participating policyholders on regular sales, service and policy administration issues related to participating policies. If you have questions about your individual life insurance policy, please contact your financial security advisor or our Client Service Centre at
1-800-665-0551.