Scam Alert

Remember the old saying “if it’s too good to be true, it probably is?” This applies to insurance as well. Recently, there have been a number of documented cases of people posing as insurance brokers or agents or offering “discount” insurance, often from an insurance company that doesn’t exist. If you’re not careful when you’re shopping for a deal on insurance, you could end up the victim of a costly and serious fraud.

A common scam involves fraud artists using a slightly altered name of a legitimate insurance company. Ads appear in local papers with a phone number to call. When you call, you may be surprised when you’re offered a much lower premium than what you’ve been quoted elsewhere. It’s tempting, but don’t be a victim.

Remember:

A legitimate insurance company, broker or agent will never ask*:

• for a signing fee; and/or
• that a payment be sent through a wire transfer or to an unidentified post office box.

If in doubt, always attempt to contact the insurance company in question before making any form of payment. If the company doesn’t exist, you’ll find out before you give them any money.

Insurance companies are licensed by Brokers and agents must also be licensed by . These regulators keep lists of the insurance companies, agents and brokers that are licensed to do business in their respective provinces. Some allow you to browse their lists on the Internet. Others you will have to contact by phone or in person.

Licensing – insurance companies: If you would like to check whether a particular insurance company is licensed in your province, the following provincial regulators offer web-based lists:

• (scroll down to table V of the Annual Report of the Superintendent of Insurance)

If you live in another province and would like to check up on an insurance company’s business status, please call the regulator directly. to visit the Canadian Council of Insurance Regulators’ website for contact information.

Information about federally regulated home, car and business insurance companies is provided on the Office of Superintendent of Financial Institutions website in the . Changes like amalgamations, dissolutions, name changes and transfers to other jurisdictions, are updated in the Notes .

Licensing – brokers and agents: The organizations listed below are responsible for licensing brokers and agents. Contact these organizations to verify the licensing status of a broker or agent in your province.

Province

Alberta

British Columbia

Saskatchewan

Manitoba

Ontario

Québec

New Brunswick

Nova Scotia

PEI

Newfoundland and Labrador

If you suspect that you’ve been the victim of an insurance fraud involving a phony agent, broker or insurance company, please report it. Click here to find out how.