FSCO warns of fraudulent auto insurance seller in Ontario

Published: April 22, 2019

CATEGORY:

Share:

The Financial Services Commission of Ontario (FSCO) has sent out an advisory, warning consumers in the province about a person selling fraudulent insurance products.

FSCO says Kawai Ho is not licensed to sell insurance in Ontario and any product bought from him will not be valid. Ho is selling auto insurance coverage from Desjardins Insurance, but he is not licensed by the FSCO to do so. Not only that, Ho has no affiliation with Desjardins Insurance and is not associated with the company in any way.

To avoid being duped into false coverage, the FSCO says consumers should be cautious if contacted by Ho or any of his associated. Under no circumstances should customers purchase insurance policies from him.

“Consumers who purchase items or insurance from individuals or entities that are not licensed as agents or insurers in Ontario are not protected under the Insurance Act and the regulations that govern Ontario’s licensed insurance companies and agents,” the FSCO said in its statement.

Under Ontario law, licensed insurance agents or brokers can advise customers, provide information on risks and benefits regarding purchasing coverage. FSCO reminds customers that they should always check on its website, where a database of licensed agents and companies is available.

Licensed brokers in the provinces are all viewable on the Registered Insurance Brokers of Ontario (RIBO) website.

Last month, Desjardins Insurance in collaboration with Aviva Canada warned of another man selling fraudulent coverage in Ontario.

The two companies reference the investigation of Serif Aly, who was charged last month with selling fake vehicle insurance in Ontario.

Ontario Provincial Police (OPP) confirmed last month they arrested 38-year-old Aly in February on two counts of insurance fraud under $5,000 and false documentation. Authorities accuse Aly of selling auto insurance in the Toronto region without a license and under the name of a fake company known as Reef Car Insurance.

“This is the worst kind of insurance fraud because it leaves victims unprotected and vulnerable to significant financial liability – the exact opposite of what an insurance policy is designed to do,” said Colm Holmes, president and CEO of Aviva Canada.