By: Luke Jones, Published on June 13, 2017 08:03 AM, Last Update on June 13, 2017 05:05 AM
Auto and parts dealerships in Alberta are now able to sell gap insurance, the Alberta Insurance Council (AIC) announced Monday. The AIC says its General Insurance Council (GIC) has approved a restricted certificate of authority for the introduction of gap insurance.
A property insurance type, gap coverage protects the difference between recovery on primary auto insurance at total loss and the manufacturer’s suggested retail price of a current year replacement. Alternatively, it covers the difference between the recovery and an outstanding loan or lease in the event of total loss.
In a press release, the council says until now, it has given restricted agent licenses to businesses in order for them to sell some types of coverage. This has been ongoing since 2001, with incremental updates to include more businesses as regulations have allowed.
Alberta’s government decides which type of business can get these restricted licenses, but it is left to the AIC and GIC to decide which types of insurance can be sold. The application to allow dealerships and equipment dealers to sell gap insurance has been with the GIC since 2015.
GIC says it studied the proposal before approving the restricted certificate of authority that allows dealers and equipment sellers to offer gap insurance. Before being able to do so, interested businesses must obtain a certificate of authority which allows them to sell insurance.