Ontario regulator issues warning over unlicensed GAP insurance provider

Ontario’s financial services regulator has issued a warning over an unlicensed company providing guaranteed asset protection (GAP) insurance to consumers in the province.

Assureway Protection Corporation has been providing consumers with GAP insurance in connection with the purchase of new and used vehicles, the Financial Services Regulatory Authority of Ontario (FSRA) says Thursday in a press release.

“FSRA has specifically identified that some of these GAP products name an insurer despite no licensed insurer having issued the policy,” the regulator says. “Assureway Protection is not, and never has been, a licensed insurance company and is not authorized to engage in the insurance business in Ontario.

“This means any existing or future policies and claims may not be honoured.”

Consumers should not purchase GAP insurance products from Assureway Protection or from any of its agents or representatives, FSRA warns.

GAP insurance is intended to protect consumers if they can no longer use their vehicle due to theft, an accident, or mechanical defect. It generally covers the financial shortfall between the amount remaining on a vehicle loan and the vehicle’s actual cash value.

Consumers may file a complaint with FSRA to help support its understanding of the scope and impact of Assureway’s unlicensed activities. Complaints may also inform any regulatory action FSRA may take. “However, FSRA cannot recover premiums, issue refunds, or secure the payment of claim related to Assureway GAP products,” the regulator warns.

Consumers can file a complaint with FSRA and may also contact FSRA at 1-800-668-0128 or by email at ContactCentre@fsrao.ca.

GAP insurance in Ontario is sold through car dealerships, brokers and specialized providers.

Motor vehicle dealerships in Ontario are regulated by the Ontario Motor Vehicle Industry Council (OMVIC). Consumers with concerns about how the Assureway Protection product was offered or sold at an OMVIC registered dealer can contact OMVIC at 1-800-943-6002.

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.