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BCFSA Imposes Penalties on Travel Insurance Companies Involved in B.C. Secondary School Trip Cancellations
Old Republic Insurance Company of Canada and Worldstrides Canada Inc. Disciplined for Licensing and Oversight Breaches
Vancouver, February 17, 2022 – Two companies involved in travel insurance for secondary school trips have been disciplined by BC Financial Services Authority (“BCFSA”) for their conduct related to COVID-19 trip cancellations.
Between January and March 2021, BCFSA began receiving complaints regarding issues with insurance claims for cancelled school trips because of COVID-19 in March 2020. An investigation found that Worldstrides sold travel insurance in B.C. without a license and Old Republic facilitated that activity, in contravention of the Financial Institutions Act. Policyholders experienced significant delays in claims processing due to a dispute between the companies.
“BCFSA expects insurers to treat consumers fairly and to have the necessary oversight and control over parties selling their products,” said Blair Morrison, Superintendent of Financial Institutions. “These cases are illustrative of the harm that can arise from inadequate oversight and control.”
The Superintendent issued notices of administrative penalty of $40,000 for Old Republic and $35,000 for Worldstrides.
View the Notice of Penalty:
Old Republic and Worldstrides have the right to dispute these decisions under the Financial Institution Act to the BCFSA within 14 days.
To report an insurance complaint, visit: File an Insurance Complaint | BCFSA
ABOUT BCFSA
BC Financial Services Authority (“BCFSA”) is a Crown regulatory agency of the Government of British Columbia. BCFSA oversees the financial services sector which includes pension plans, mortgage brokers, real estate services, real estate development marketing, and financial institutions (credit unions and insurance and trust companies). BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”).
Media Contact
Warren Mirko
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Visit: www.bcfsa.ca