FSCO issues consumer warnings about unlicensed brokerages, insurance card scams

The Financial Services Commission of Ontario (FSCO) has issued a number of consumer warnings over the past few weeks, publicizing the names of unlicensed insurance brokerages and releasing details of fraudulent insurance card scams.

In unrelated posts, FSCO has cautioned that Ottawa Insurance Broker Services is not licensed to do insurance business in Ontario as either an insurance agency or an insurance broker, and Batch Bros Brokers is not licensed to do insurance business in the province. “This company appears to be involved in a fraudulent insurance card scam,” the regulator says of Batch Bros Brokers.

FSCO had earlier warned consumers generically about scams involving fraudulent insurance cards. These are “the pink documents required by law that contain insurance particulars for vehicles, including policy numbers and policy expiry dates,” the notice states. “Fraudulent insurance cards appear valid, but have false policy numbers and/or expiry dates.”

The website posting notes two common scenarios are typically involved in these scams:

• An individual pretending to be a licensed agent or broker offers to arrange auto insurance coverage at a rate much lower than what the consumer is currently paying or has been quoted. The individual charges the consumer a fee for this service.

• An individual provides the consumer with a quote. When the consumer accepts the quote, he or she is asked to send a partial or full payment for coverage through a transfer or money wiring service. In some cases, the individual in question will meet with the consumer to accept a cash payment.

“In both scenarios, consumers may receive fraudulent insurance cards,” FSCO notes. “In reality, their auto insurance coverage is non-existent.

“Consumers should note that licensed insurance agents and brokers do not charge a fee for arranging personal automobile insurance.”