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Home / FAQs / All producer premiums go into a general fund to pay indemnities. What happens if the payout for indemnities exceeds what is in this fund?

Frequently Asked Questions

All producer premiums go into a general fund to pay indemnities. What happens if the payout for indemnities exceeds what is in this fund?

January 19, 2021

If the fund goes into a deficit position, the Government of Canada and indemnity from a reinsurance policy will cover the program. Existing policies will be honoured even in the case of a border closure or similar catastrophic market event.