june 5, 2000

Loss of employment insurance and accident & sickness insurance

Ref: PACIC76.00

June 5, 2000

TO: All PACICC Members

FROM: Alex Kennedy

SUBJECT: Loss of Employment and Accident and Sickness Insurance

I refer to my June 1, 1999, memo (Ref: PACIC112.99) to member companies on this matter. It appears that there are some misunderstandings about the extent of coverage provided by PACICC in respect of Accident and Sickness Insurance so it is hoped the following explanation will clarify the matter.

Schedule ‘A’ to PACICC’s Memorandum of Operation lists a number of policies which are deemed to be excluded from the definition of "Covered Policy". These includes policies of:

Accident and Sickness Insurance
Personal Accident Insurance;
and Sickness Insurance

"Accident and Sickness Insurance" is then defined as meaning insurance coming within the class of Personal Accident Insurance and Sickness Insurance, when written by an organization which is authorized to write (i) only Accident and Sickness Insurance; or (ii) Life Insurance. Effectively, that means if the Accident and Sickness Insurance Policy is written by a company that does not write any other class of insurance or is written by a company that writes Life Insurance, Compcorp, not PACICC, responds; if it is written by a company that e.g. writes Accident and Sickness Insurance and Automobile Insurance, PACICC responds. This also means that if a Sickness Insurance policy, or a Personal Accident Insurance policy is written by an insurer which is authorized to write other P&C classes of insurance (but not Life Insurance), PACICC will provide protection with respect to those policies.

It is hoped this clarifies the matter.

Alex Kennedy
President & C.E.O.

c.c. PACICC Directors

Federal Superintendent of Insurance
Insurance Regulators