Sun Life Financial has reached a settlement relating to individual life insurance policies sold by Metropolitan Life Insurance of Canada (MetLife) in the 1980s and 1990s, which the insurance company inherited.
The settlement, which is still subject to court approval, would result in up to $213.5 million to those who are eligible.
Sun Life declined to provide further comment to CTV News Toronto, as the proposed settlement is still before the court.
Here’s what you need to know.
What is the settlement about?
Sun Life has allegedly been collecting charges and fees from policyholders, stemming from various policies it now administers, which were originally sold by MetLife.
Between 1992 and 1998 and during 1998 respectively, “Universal Flexiplus” and “Optimet” policies were offered to clients by MetLife, which Sun Life took over in 1998.
It’s alleged that the policies had limits that may have been exceeded by Sun Life when administering them.
Universal Plus policies were sold between 1987-1998 by MetLife and taken over by Sun Life in 1998.
According to sunlifeclassaction.com, the class action originally alleged the MetLife policies “had been sold by MetLife pursuant to a pattern and repeated practice of misrepresentations.”
However, the courts ruled those claims can’t be covered in a class action, as “each purchase involved too many ‘idiosyncratic’ issues.” Those misrepresentation claims can now only be pursued individually.
When was the class action started?
The class action against Sun Life started in 2010, by a group of people who’d bought the universal life insurance policies sold by MetLife of Canada between 1987 and 1998. They are Angela Watters, Elden Fehr, Gaetan Laurier, Leslie Michael Lucas, Rebecca Jean Clark, Lloyd Shaun Clark and James Patrick O’Hara.
Who is eligible to be part of the class-action lawsuit?
If you bought Universal Plus, Flexiplus, or Optimet policies between 1987 and 1998, you are eligible to become a class-action member. Class action members from all provinces in Canada are included.
How much money are class-action members entitled to?
The case’s liability or damages have not yet been determined, as there are many factors that will establish its outcome.
Click here for more information on the Sun Life class-action lawsuit.
