June 12, 2017 by Staff
The Alberta Insurance Council (AIC) has given its approval to vehicle and equipment dealerships to sell gap insurance.
Gap insurance refers to property insurance that covers all or a portion of the difference between the recovery received on primary automobile insurance in the event of a total loss and the manufacturers’ suggested retail price of a current year replacement vehicle or the difference between the recovery on a primary automobile insurance policy and an outstanding loan or lease obligation in the event of total loss.
The regulator has issued a restricted certificate of authority that allows vehicle and equipment dealerships to sell this type of insurance, according to the AIC’s recently released announcement. Dealerships that are interested must apply for a certificate of authority, which can occur through the AIC’s website, in order to sell gap insurance.
The AIC has the authority to issue restricted insurance agent licenses to prescribed businesses that authorize them to sell certain types of insurance. Although the provincial government can determine the types of businesses that can apply for these licenses, it is up to the AIC’s General Insurance Council and Life Insurance Council to determine the types of insurance that can be sold under the restricted license and the conditions under which these products are marketed and sold, states the announcement.
This story was originally published by Canadian Insurance Top Broker.