Although a regulatory investigation remains ongoing, the Financial Services Regulatory Authority of Ontario (FSRA) has imposed compliance orders against Assureway Protection Corporation, formerly known as AssureWay Corporation or AssureWay Insurance, ordering it to cease engaging in any insurance business in Ontario.
Assureway Protection, federally incorporated in 2022 and located in Ontario, has never been licensed as an insurer or in any other capacity under the province’s Insurance Act.
The predecessor organization, AssureWay Insurance, ceased operations in 2022 when Assureway Protection was created and assumed the business of the predecessor company. Shiraz Hussain is the sole officer and director of the companies since 2013.
In August 2016, AssureWay Insurance signed an undertaking with the Financial Services Commission of Ontario (FSCO), FSRA’s predecessor organization, wherein the company undertook to immediately cease offering GAP-like insurance product called the Product Equity Loss Protection Program and any similar products unless underwritten by a licensed insurer. In a settlement signed the following year, AssureWay agreed to only offer the product through Lloyd’s of London, and to stop dealership-based sales and advertising. Lloyd’s stopped providing coverage for the product in 2020 and has never underwritten any Assureway Protection GAP (Guaranteed Asset Protection) product.
“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.” The notice of proposal in the case states.
It adds that FSRA has received numerous complaints from consumers asserting that their products with Assureway Protection are being ignored, denied or deemed invalid. “These complaints also included consumers from other provinces,” they add. “When consumers contacted Assureway Protection about their claims, some were advised that the company was reviewing its operations and financial position. Assureway Protection also indicated that it was ‘self-insured.’”
The compliance order does not discuss or contemplate monetary penalties as the regulator’s investigation into Assureway Protection and Hussain’s activities is ongoing.
“Assureway Protection is an imminent risk to the public,” the reasons for order in the case states. “Without being licensed to sell insurance, there is an increased risk that Assureway Protection may be unable to meet its financial obligations to consumers. The serious nature and repeated pattern of misconduct present a significant risk of public harm.”
In addition to ceasing business, the company must also notify all motor vehicle dealers that have sold Assureway Protection products, that it is not authorized to provide insurance products and that the GAP products it sold were not underwritten by an insurers.
