The Ontario Financial Services Regulatory Authority (FSRA) has announced that the first insurance rules have been approved by the Minister of Finance.
FSRA Unfair or deceptive behavior or practice (UDAP) rules apply to life and health insurance, as well as non-life insurance companies. According to the official release, this rule will be effective from April 1, 2022.
Regulators noted that UDAP regulations would replace existing similar state regulations in Ontario, leading to benefits such as improved claims outcomes. Protect your customers from “inappropriate practices” such as unfair discrimination and fraud. Reduce the regulatory burden by reducing the norms that enable industry innovation. We support the transition to principle-based regulation.
The FSRA also emphasized that this rule further aligns the regulation with the “customer fair treatment” guidance.
Perhaps one of UDAP’s most notable provisions is a statement regarding prohibited acts in car insurance quotes, applications, and / or renewals. According to it, FSRA agrees to collect and use credit information from consumers, other than the sole purpose of agents, brokers and insurance companies to use consumer credit information and whether to offer premiums. It is forbidden to ask or request. Financing.
FSRA’s UDAP also prohibits insurers from offering payments, rebates, and / or valuable gifts when used to encourage customers to take actions related to insurance products.
“This is a positive step forward to promote safety, equity and choice for insurance consumers across Ontario,” said Mark White, CEO of FSRA. “UDAP rules empower FSRA to oversee the behavior of the insurance industry and protect consumers by clearly defining unfair or other harmful consequences.”
FSRA, Ontario issues first insurance rules for unfair or deceptive conduct
Source link FSRA, Ontario issues first insurance rules for unfair or deceptive conduct