Alberta warns against unlicensed insurers

Alberta’s insurance regulator has issued a public warning against operators said be selling insurance products within the province without a license. This move follows on legal action taken by Ontario’s financial services regulator last month against a company believed to have been illegally underwriting property and casualty insurance products.

An Insurance Bureau of Canada (IBC) news release says injunctions have been obtained against Combined Services Ltd., Citadel General Surety Ltd., Vanguard Marine and General Ltd., and Tri-Continental Exchange Ltd., ordering them to cease business in Alberta until they are licensed. “If you’re currently insured with one of these unlicensed insurers, you should immediately contact an insurance broker or a licensed insurance company to make arrangements to obtain insurance coverage that complies with both the Motor Vehicle Administration Act and the Insurance Act,” says Jim Rivait, a regional vice president at the IBC.

The IBC notes that consumers having purchased a policy from an unlicensed insurer are currently without coverage. Uninsured drivers in Alberta face a hefty fine of $2,500 for a first offence under the province’s legislation.