Court approves $213.5 million Sun Life class-action settlement

BNN Bloomberg reported that the Ontario Superior Court of Justice has approved a $213.5 million class-action settlement against Sun Life, an insurer. Kim Spencer McPhee Barristers P.C., the law firm that brought the case, calls it the largest reported settlement in any life insurance policy dispute in Canadian history. It concerns 70,000 eligible current and former Flexiplus and Universal Plus policyholders.

The firm’s release says the action began in 2010 over alleged improper administration of three universal life insurance policies: Universal Plus, Flexiplus and OptiMet. Agents of Metropolitan Life Insurance Co. sold the policies in Canada between 1987 and 1998.

The release says Sun Life has denied any wrongdoing. Sun Life said it inherited the policies through historical Canadian acquisitions and that the matter does not involve any policies or products it sold.

Sun Life said that if the court approved a settlement, it would seek full recourse from MetLife, which provided an indemnity relating to the policies. Whether MetLife will pay is not yet known.

Eldon Fehr, the representative plaintiff, says the settlement will provide significant benefits to current and former Sun Life policyholders.

Sources: BNN Bloomberg