FSCO obtains cease and desist order against Unifund Assurance Company

Ontarios insurance regulator, the Financial Services Commission of Ontario (FSCO), in June 2007 obtained a cease and desist order against Unifund Assurance Company, FSCO posted in a quarterly bulletin announcing the outcomes of its regulatory actions.
On June 6, 2007, the Superintendent issued a cease and desist order against Unifund Assurance Company for committing an unfair or deceptive act or practice, by charging rates for coverages or categories of automobile insurance that were not approved by the [FSCO] superintendent, the bulletin notes.
Under the cease and desist order, the superintendent has ordered Unifund to refund all current and former policyholders who were overcharged.
Eligible policyholders will be refunded the amount that was paid in excess of the approved rate, plus 5% interest, calculated annually from the date of payment (for the policy), FSCO noted in its bulletin.
The reimbursement is to be made by a cheque and/or credit to the policyholders account. Unifund will be required to track the proper mailing addresses of the policyholders affected by the order. FSCO added a letter in a form approved by the superintendent will be sent to the policyholder to explain why a refund was received.
The refund process should be concluded by Feb. 15, 2008, FSCO reported, at which time Unifund will provide as written report detailing its compliance with the cease and desist order.
The cease and desist order and the complaint against Unifund represented the only regulatory actions concluded by FSCO against an insurer for the period of April 1 to June 30, 2007.