~-BRITISH ( OLUMBIA IN THE MATTER OF THE FINANCIAL INSTITUTIONS ACT R.S.B.C. 1996, C. 141 and 400094 CANADA INC. doing business as ENSURALL
CONSENT ORDER [FIA s. 244]
WHEREAS 400094 Canada Inc. ("Ensurall"), an Ontario based company doing business as Ensurall, acts as an obligor with regard to extended vehicle warranty products marketed and sold under the name Ensurall Extended Vehicle Warranties (the "Product") which are insurance products in British Columbia;
AND WHEREAS Ensurall operates a website (http://ensurall.ca/) accessible to the general public through which It markets and makes available for sale the Product and promotes that it has an office in British Columbia;
AND WHEREAS Ensurall sold the Product to British Columbia residents with respect to their British Columbia vehicles ("British Columbia Product");
AND WHEREAS Ensurallls not authorized to conduct insurance business in British Columbia;
AND WHERE Ensurall has removed all reference to British Columbia from Its marketing materials, including its own websites and Veri-Cheque Ltd. websites;
AND WHEREAS Ensurall has added a disclaimer to all marketing materials and websites stating that this Product is not available to residents of British Columbia;
AND WHEREAS Ensurall has cooperated with the Superintendent's investigation of the matter and It appears to the Superintendent that the only sales to British Columbia residents were not as a result of solicitation in this province by Ensurall and the Superintendent finds that it is appropriate to enter into a consent order with Ensurallin order to rectify the matter of unauthorized insurance business with regard to the Product and to protect the interests of British Columbia insureds, and Ensurall consents to the order;
Superintendent of Financial Institutions 2800ยท555 Was! Hastings N6 Telephone: 604 660-3555
Facsimile: 604 660-3365
2 THEREFORE the Superintendent makes the following orders: 1. Ensurall will not solicit the sale of, or sell any insurance, including the Product, to residents of British Columbia or with respect to insurance risk in British Columbia, or otherwise conduct insurance business in British Columbia, without being authorized to conduct insurance business in British Columbia;
2. Ensurall will forward all claims with regard to British Columbia Product to an insurance adjuster licensed in British Columbia, retained at the expense of Ensurali, and Ensurali shall abide by the decision of the adjustor in handling those claims;
3. In order to provide security for payment of claims, by February 4, 2013, Ensurall will arrange for an irrevocable standby letter of credit In favour of the Superintendent to be issued by a Canadian bank or British Columbia credit union in the amount of $25,000 with respect to the British Columbia Product which still provides warranty coverage as of December 31, 2012. The form of the letter of credit must be satisfactory to the Superintendent. The letter of credit must be in place until Ensurall is appropriately authorized to sell the Product in British Columbia or until the expiry of the coverage of ali of the British Columbia Product whichever is earlier. The letter of credit may be cancelled or replaced with subsequent letters of credit of decreased value in relation to the expiry of British Columbia Product coverage with the written agreement of the Superintendent;
4. Ensurali shall report to the Superintendent on its fulfillment of paragraph no. 2 above upon the conclusion of each claim;
5. There will be no order for costs In relation to this order; and 6. Ensurall waives any right of appeal or judicial review it may have with respect to this order.
CONSENTED TO: 400094 Canada Inc. By its authorized signatory Name: ~iltt~ Ru\ I)J'e}u Title: (!.Jryt.fro 1/.Lh f blrul-01. of Ca ny Lt.eutC-V
CONSENTED TO AND APPROVED AS TO FORM:
Sandra A. Wilkinson Counsel to the Staff of the Superintendent of Financial Institutions
Issued this p{t-.1 day of January, 2013 at the City of Vancouver, Province of British Columbia
GarO!YfiR096fS' Superintendent of Financial Institutions, Province of British Columbia
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