BA life policyholders to receive partial refund

Life insurance policyholders were encouraged to continue to pay their premiums to the Company to ensure that their policies were in full force and effect in the event that the OR was able to arrange for an alternative insurer to take over the life insurance policies. 

To this end such life insurance premiums were kept in a segregated account for the benefit of those paying premiums so that if the OR was unable to find alternative arrangements for life policyholders, premiums paid from the date of the commencement of the provisional liquidation process (i.e. 29 July, 2009) would be repaid to those life policyholders. 

Regrettably, on September 7, 2010, the OR announced that he would be proceeding with a full liquidation of the Company resulting in the cancellation of all policies. Further a Scheme of Arrangement (Scheme) will be put into place for all life insurance policyholders and creditors of British American who are resident in Bermuda. Under the terms of the Scheme, the policyholders and creditors will receive a distribution representing a percentage of an ascribed value of their policy.

Accordingly, all those life policyholders who have continued to pay premiums since July 29, 2009, including Accidental Death & Dismemberment and Sickness & Accident policyholders, will now receive a refund cheque representing the sum of all their premiums paid into the Company since that date.

This cheque represents a refund of all life insurance premiums paid since July 29, 2009 only and does not include the value of any policy that will be distributed to policyholders through the scheme of arrangement. More detailed information regarding the scheme of arrangement will be issued in the near future.

Cheques will be available for collection at the British American offices on 133 Front Street, Hamilton from Tuesday, November 2, 2010 between the hours of 9am – 4pm, Monday to Friday.

If you are unable for medical reasons to pick up your cheque yourself, or if you have any questions you can contact the British American hotline on 294-2651 or via email at [email protected]. Further information can also be found at www.kpmg.bm/ba.