The Financial Services Regulatory Authority of Ontario (FSRA) has issued a notice, which warns customers in the province to be wary of individuals selling auto insurance despite being unlicensed with the FSRA.
According to the regulator, it had recently come to its attention that there may be individuals soliciting auto insurance policies, by meeting “clients” in coffee shops in and around the Windsor area. The FSRA also cautioned that most of the transactions conducted through these coffee shop meetings were for fraudulent auto insurance coverage, which leaves the customer uninsured while the seller walks away with the money.
“FSRA encourages consumers to exercise caution if they are contacted by any individual not licensed through FSRA, and are advised not to purchase insurance products, including automobile insurance through them,” the provincial regulator said.
The regulator went on to explain in a release that a licensed insurance agent can offer information and advice on the benefits and risks involved with purchasing different insurance products. The FSRA additionally warned that those who purchase insurance from unlicensed entities in Ontario are not protected under the Insurance Act and the regulations that govern agents and insurers licensed in the province.
FSRA has advised consumers to refer to a list of all insurers and agents licensed to operate in Ontario on its website. It also recommended that customers also refer to the website of the Registered Insurance Brokers of Ontario (RIBO) for a list of licensed brokers.
In August, FSRA appointed Barbara Bellissimo to a three-year term on its board of directors. Bellissimo is the former senior vice president of Desjardins – a role she served for five years. She has also held several roles at State Farm Insurance, including as chief agent and senior vice president for Canada, operations vice president for life and health, and vice president of operations in Canada.
