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Policy Holders Please Sign

Owners of Asset Investor, Fortune and Mutual Investor Plus policies are being invited to sign an agreement at their insurance companies to enable accounts of up to $200,000 to be established in their names at the Bank of Nova Scotia under a scheme to payout lump-sum, interest-sensitive policyholders caught up in the insolvency of Mutual Life, Crown Eagle and Dyoll.

Pointing out that the quicker the agreement is signed, the earlier policyholders will be able to access their funds, Mr. Patrick Hylton, Managing Director of FINSAC, said that the accounts will be opened between April 1st and June 1st depending on when policyholders sign.

Those signing between February 24 – March 10 will have their accounts opened on April 1, 1999; those signing between March 11 and April 9 will have their accounts opened on May 1, 1999; with those signing between April 12 – May 10 scheduled to have access to their funds on June 1, 1999.

Stressing that the final date for signing was May 10th, Mr. Hylton said that once policyholders signed indicating acceptance of the scheme, their balances would be finalised and forwarded to BNS for their accounts to be set up.

Under the scheme, brokered by FINSAC with BNS, holders of lump sum interest-sensitive policies brought from Crown Eagle, Dyoll and Mutual Life will be able to get a maximum of $200,000 of their funds between April 1st and June 1st. Certificates of Participation will be issued for any remaining amounts. Interest is payable twice per year at BNS pass book rates and will be tax-free. The certificates will mature in 7 years, during which period the principal will not be available, but the Certificates will be tradable.

Urging policyholders to come in and accept the scheme, Mr. Hylton pointed out that this was the best deal possible for these policyholders.

The FINSAC/ BNS initiative is the first phase of the divestment of the business of the three failed insurance companies to come to fruition. The second phase, the sale of traditional life, equity linked, group life, non lump-sum interest sensitive, and health policies, as well as, management of the pension schemes, is underway.

"In addition to these strategies, which we expect to revitalize the insurance sector, regulations governing the industry are also being over hale, both of which will be to the benefit of consumers," the FINSAC head said. "This is what FINSAC is all about."

 

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