TORONTO, Oct. 11, 2005 – The Insurance Brokers Association of Ontario (IBAO) wishes to warn all Ontarians of an insurance fraud ring across the province.
It has been brought to the association’s attention that over the past several weeks, ads have been circulating throughout the media in dozens of cities across the province advertising fraudulent automobile insurance.
IBAO wishes to warn Ontarians that these ads are a hoax, and this type of activity is illegal with severe penalties.
“Consumers should be leery of offers that include 6 months free automobile insurance and offers to reduce your current rates by 50%,” says IBAO President Dave Hare.
IBAO wants to stress that consumers of automobile insurance should be vigilant with all their insurance purchases. “If it seems too good to be true, ask questions,” adds Hare. Some tips to assist you are as follows:
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If an offer appears “too good to be true”, it probably is.
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Do some research on the name of the insurer provided to you; (internet, phone book, call another broker)
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Always ask for details about the agent or brokerage you are dealing with (name, address, web address, etc.)
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Be vigilant and carefully read the documents you sign. Never sign anything without having read it.
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Be careful when providing credit card information or any other form of payment such as a postal money order that is requested to be mailed in or a wire transfer.
All licensed insurance companies operating in Ontario can be found on the Financial Services Commission of Ontario web site at www.fsco.gov.on.ca. Broker and brokerage licensing status can be found at www.ribo.com.
Should anyone see any of these types of ads offering “free insurance”, please inform RIBO at (416) 365-1900/Toll Free 1-800-265-3097 or FSCO at (416) 250-7250/Toll Free at 1-800-668-0128.
IBAO is proud of the professional service provided by insurance brokers throughout the Province of Ontario, however we urge consumers to always be vigilant and use common sense when it comes to your insurance needs. IBAO represents 9,900 insurance brokers across Ontario.
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