Lump-sum, interest-sensitive policyholders of Mutual, Dyoll and Crown Eagle Life Insurance Companies will get another chance to sign the FINSAC agreement to recover their funds following an extension of the deadline to June 10, 1999. In announcing the extension, Mr. Patrick Hylton, Managing Director of the Financial Sector Adjustment Company (FINSAC), said that in view of the fact that many policyholders had not yet signed up, FINSAC had taken the decision to give them a further opportunity to come in. He pointed out that while only about 25% of policyholders had signed up by the end of the second tranche and that this is expected to reach approximately 37% when the numbers are in for those signing up by May 10. Nontheless, the FINSAC head said the vast majority of funds invested in this type of project has been signed for. In fact, the 25% of policyholders signing by the April 9 deadline accounted for 63.3% of the liabilities or $1,768 million. Mr. Hylton said, FINSAC was encouraging the small policyholder to come in and secure their money. He noted that although 60% of lump-sum, interest-sensitive policyholders had $20,000 or less and would be paid out in total immediately, less than 10% of these had come forward up to April 9, 1999. Commenting on the fate of policyholders who did not take advantage of the FINSAC offer by June 10, Mr. Hylton said that on April 29, 1999 The Supreme Court ruled that the FINSAC-pioneered scheme to pay out lump-sum, interest sensitive policies of Crown Eagle, Mutual Life and Dyoll Life was the best deal possible for policyholders. In approving the scheme of arrangements proposed, the Supreme Court also agreed that lump-sum interest-sensitive policies whose owners do not accept the FINSAC scheme, will be transferred to Larnaka Ltd, a FINSAC subsidiary. FINSAC will issue bonds or other long term instruments to Larnaka to enable it to settle the claims of policyholders under the same terms and conditions as the current FINSAC initiative. Under the scheme now before policyholders, accounts of up to $200,000 will be opened at the Bank of Nova Scotia after completion of the paperwork by policyholders. Those with over $200,000 invested in these investment-type policies would receive the first $200,000 of their funds with the balance placed on Certificates of Participation which would earn tax-free interest at BNS passbook rate and mature in 5 years. All three insurance companies reported a busier than usual day on Monday when the third tranche for signing the agreement ended. May 13,1999
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