TORONTO, Oct. 27, 2026 /CNW/ -- The Ontario Superior Court of Justice has approved a settlement valued at $213.5 million in the national class action, Fehr et. al. v. Sun Life Assurance Company of Canada. The action, which commenced in 2010, concerns Sun Life's alleged improper administration of three universal life insurance policies, Universal Plus, Flexiplus, and OptiMet (collectively, the "Policies") that were sold by Metropolitan Life Insurance Co. ("MetLife") agents in Canada from 1987 through to 1998. Sun Life has denied any wrongdoing.

The settlement is the largest reported settlement in any life insurance policy dispute in Canadian history, providing benefits to approximately 70,000 eligible current and former Flexiplus and Universal Plus policyholders across Canada.

After reviewing the settlement, the Court characterized it as "fair, reasonable, and in the best interests of the Class", and noted that "the public interest and the interests of the Class are well-served by the outcome". The Class members are represented by Kim Spencer McPhee Barristers P.C., one of Canada's most accomplished class action firms. In its reasons approving the settlement, the Court acknowledged "the unique history of the litigation, the groundbreaking legal theory, the litigation hurdles, and the personal risk borne by Class counsel for well over a decade".

The settlement will provide eligible current and former Flexiplus policyholders across Canada with direct monetary compensation for a portion of past Cost of Insurance and Administration Fee increases. It will also permanently freeze COI rates and Administration Fees for current Flexiplus policyholders.

For Universal Plus policyholders, the claims advanced in this action centred on the interpretation of the term "Maximum Premium" contained in earlier versions of the policy. The settlement will provide direct monetary compensation to certain current and former Universal Plus policyholders with pre-1992 policies who experienced COI charges in excess of their stated base coverage "Maximum Premium". It will also cap future COI charges to a set multiple of the base coverage "Maximum Premium" for current Universal Plus policyholders with pre-1992 policies. 

The Court also approved honoraria for each of the representative plaintiffs, emphasizing the "remarkable commitment to the action by the representative plaintiffs with the support, expertise, and grit of Class counsel".

In reflecting on this long and arduous journey and the settlement achieved, representative plaintiff Mr. Eldon Fehr expressed his deep appreciation for the Class Counsel team who represented him, and stated "We are pleased to see this litigation finally come to a close. Class Counsel has fought this case on our behalf for over a decade and a half. The litigation has been hard fought, and this settlement will provide real and significant benefits to current and former Sun Life policyholders."

Megan B. McPhee, Class counsel and Managing Principal of Kim Spencer McPhee Barristers P.C., the lawyers for the class, said, "Many of our class members purchased these policies to provide security for their families. At a time when so many families are facing increased costs, this settlement will put money back in Class members' pockets and will provide peace of mind and certainty on the future cost of insurance and administrative costs of their polices"

For more information about this class action, please visit www.sunlifeclassaction.com or www.complexlaw.ca

SOURCE Kim Spencer McPhee Barristers P.C.