Superintendent of Financial Services Takes Control of Canadian Millers' Mutual Insurance Company
(TORONTO) December 7, 2001 - The Superintendent of Financial Services at the Financial Services Commission of Ontario today issued an order under the Insurance Act, taking possession and control of the assets of Canadian Millers' Mutual Insurance Company.
Under Section 58 of the Insurance Act, the Superintendent can take this action in the event that an insurer's assets are insufficient to justify its continuance in business or to provide for its obligations or that there exists a state of affairs which could prejudice policyholders.
The Superintendent had been closely monitoring the company and took this action after receiving financial information from a chartered accounting firm showing that the assets were insufficient to warrant Canadian Millers' Mutual Insurance Company continuing in business.
Policyholders are protected, within program limits, by the Property and Casualty Insurance Compensation Corporation. PACIC is an insurance industry operated and funded compensation plan.