Aviva Insurance Companies: Face Heavy Fines Over Car Insurance Misconduct

Aviva Insurance Companies : Two insurance companies owned by Aviva were fined $600,000 by the Ontario Financial Services Regulatory Authority (FSRA). They had trouble with their car insurance.

Aviva Insurance Company of Canada and S&Y Insurance were fined for not following the ‘Take-All-Comers’ car insurance rules. The FSRA found that the state’s top 12 auto insurance companies needed to follow the Take-All-Comers rules.

Under the Take-All-Comers rule, Ontario’s car insurance companies must quickly quote all drivers. The FSRA’s regulations for insurance govern pricing. Insurance companies have to work with people who follow the rules.

In 817 cases, Aviva Insurance Company of Canada and S&Y Insurance did not give customers or brokerages a price, even when it was the lowest. This goes against what the FSRA calls an “unfair or deceptive act or practice.”

The Aviva Group, which owns both AIC and S&Y, stopped using automatic rules or directions that didn’t meet the Company’s screening standards in February 2022. Meanwhile, AIC and S&Y didn’t check to ensure that the Unapproved Underwriting Rule and the limits on the number of daily sales leads were no longer being used.

Aviva Insurance Companies
Logo Of Aviva Life Insurance

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The FSRA put these punishments in place:

From November 15, 2021, to April 30, 2022, S&Y Insurance Company needed to follow sections 237 and 238. The price was $150,000.
Under 441.3(1)(2), S&Y Insurance Company had to pay a $150,000 fine. They should have done what they said they would do between February 25 and April 30, 2022.
Aviva Insurance Company of Canada was fined $150,000 for breaking Act sections 237 and 238 from November 15, 2021, to June 20, 2022.
Aviva Insurance Company of Canada had to pay a $150,000 fine because they broke a deal between February 25, 2022, and June 20, 2022. This is against Act 441.3(1)(2).
The punishments depended on how intentional or careless the actions were, how bad the damage or potential damage was, what was done to fix the problem, how much money was made, and if the person had broken the rules in the past five years.

The FSRA found that S&Y and AIC made mistakes but were not reckless.

Aviva said they knew the problem’s importance and were committed to giving Ontarians the best rates and prices for car insurance. The business says they did everything the rules communicated to do.

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