Mr. Henderson, a 65-year-old retiree living in British Columbia, owns a universal life insurance policy with a cash surrender value of $150,000. Upon his death, his estate discovers that the insurer has become insolvent. Assuming Mr. Henderson's policy was with an Assuris member company, what is the maximum amount of coverage his beneficiaries can expect for this cash surrender value, ignoring any death benefit guarantee?

Question: Mr. Henderson, a 65-year-old retiree living in British Columbia, owns a universal life insurance policy with a cash surrender value of $150,000. Upon his death, his estate discovers that the insurer has become insolvent. Assuming Mr. Henderson's policy was with an Assuris member company, what is the maximum amount of coverage his beneficiaries can expect for this cash surrender value, ignoring any death benefit guarantee?

Answer options:

• $150,000 ✅ $100,000
• $60,000
• $200,000

Correct answer: $100,000

Explanation: Assuris protects 100% of the first $60,000 and 90% of the amount above $60,000, up to a maximum of $100,000 per policy per member, for cash surrender value benefits under a life insurance policy.