TruStar Underwriting Inc. and its principal, Daniel Moses, are now under court-appointed receivership following allegations of wrongdoing.
The receiver, Doane Grant Thornton (DGT), has been tasked with overseeing the matter.
The Registered Insurance Brokers of Ontario (RIBO) has urged brokers with ties to TruStar to review relevant court orders and notices on DGT’s website.
In connection with this development, RIBO said it has issued an alert to its licensees urging them to review any business dealings they may have had with Moses and/or TruStar.
RIBO, which said that its priority is consumer protection, advised brokers to follow these steps:
Verify existing policies with their clients and relevant insurers to ensure coverage remains valid and sufficient.
Explore alternative coverage options with clients if there is any uncertainty or lack of valid coverage.
The Insurance Brokers Association of Ontario (IBAO) has developed a set of general instructions for brokerages that previously handled policies through TruStar. RIBO said these guidelines are consistent with its expectations and provide a framework for addressing client needs during this transition.
RIBO said it is actively gathering information to understand the scope, timeline, and implications of the matter. It is also collaborating with the Financial Services Regulatory Authority of Ontario (FSRA), which is conducting its inquiries.
As an MGA, TruStar holds a voluntary RIBO license and is subject to the same regulatory standards as other licensees. RIBO urged brokers or their clients to file formal complaints through its website, adding that it will take disciplinary action where warranted.
RIBO said it will provide updates as the investigation and receivership proceedings evolve.
Justice Peter Osborne issued a continuing injunction last year against Moses regarding allegations that TruStar purportedly bound risks and collected premiums where no such coverage has been bound, putting brokers and their customers at risk.
