FSCO warns of two unlicensed auto insurance companies (June 29, 2006)

The Financial Services Commission of Ontario (FSCO) has issued a warning about two unlicensed companies advertising the sale of auto insurance in the province. “During an investigation recently completed, it came to the attention of FSCO that unlicensed entities Smart Switch and Amicable Insurance Company may have been involved in the sale of automobile insurance products through advertisements placed in Ontario newspapers,” FSCO announced on its Web site. “These entities are not licensed to carry on the business of insurance and are not registered business entities.”According to FSCO, advertisements appearing in local newspapers offered consumers six months of free automobile insurance, as well as 50% savings on current rates. The ads invited consumers to call a phone number in the 416 area code. (FSCO’s Web site lists the Smart Switch company number as 416-628-6007.)”In some cases, stolen credit cards were used to pay for the advertisements,” FSCO says.