Canada: Insurance Laws and Products

The Financial Services Regulatory Authority of Ontario has issued a clear warning that unlicensed GAP Insurance sales will not be tolerated in the province. Dealers must immediately cease selling these coverages unless appropriate insurance licensing is obtained, as FSRA actively monitors compliance and will take action against violations.

Ontario's Financial Services Regulatory Authority has issued a warning about unlicensed businesses selling Guaranteed Asset Protection (GAP) insurance through vehicle dealerships, leaving consumers potentially unprotected despite paying hundreds of dollars for coverage. The regulatory body has identified cases where GAP products reference insurers that never actually underwrote the policies, and is now taking enforcement action against violators while monitoring the market for compliance with licensing requ

Ontario is proposing significant amendments to its Life and Health Managing General Agent licensing framework in response to industry concerns about overbreadth. The revised approach would narrow the scope to entities with direct insurer agreements and intermediary functions, while shifting certain activities like agent training from licensing triggers to regulatory oversight through standards of practice. Will these changes successfully balance consumer protection with regulatory efficiency and advance har