MONTREAL, March 30, 2005 – TD Meloche Monnex today announced that it will reimburse some of its Ontario auto insurance clients following a rating error that occurred in 1999 in the calculation of their premiums. An average reimbursement of $68 for the five-year period will be sent to approximately 155,000 clients. The Financial Services Commission of Ontario has reviewed and agreed to the reimbursement process that TD Meloche Monnex has put in place.
“We very much regret this error and can assure our clients that additional controls have been implemented to prevent a similar situation from recurring,” said Marilyn Flanagan, Senior Vice President, Client Services. “TD Meloche Monnex wishes to emphasize our strong commitment to quality and client service.”
Affected policyholders were incorrectly rated from 1999 until October 2004 by Security National Insurance Company, one of TD Meloche Monnex’s underwriters, while a smaller number covered by another underwriter, TD General Insurance Company, formerly known as CT Direct Insurance, were incorrectly rated from the end of 1999 to July 2002.
Although this error occurred in 1999, the majority of its impact on client premiums was felt in 2004. As soon as the error was detected, the company fully investigated all of its processes to identify the cause for the rate miscalculation and to capture all client accounts impacted. All Security National Insurance Company’s auto insurance policies have been issued at the correct rate since November 2004. Rates for policies issued by the TD General Insurance Company have been correct since 2002.
TD Meloche Monnex is beginning to send reimbursement cheques to affected policyholders this week. The cheques will include their premium refund with sales tax in addition to interest compounded annually from the date of the incorrect billing. A significant number of policyholders were also under-billed as a result of this situation and no change will be made to their invoices.
About TD Meloche Monnex
TD Meloche Monnex, a member of TD Bank Financial Group, is the leading organization in affinity marketing in Canada, operating under two principal brands – TD Meloche Monnex and TD Insurance Home and Auto. It is one of the largest home and auto insurance companies in Canada. The company operates with a direct-response model, offering services directly to clients through client service centres. TD Meloche Monnex employs more than 3,000 people across Canada. Its offices are strategically located in Alberta, Ontario, Qu�bec, Nova Scotia and New Brunswick.