Understanding Insurance Basics

Buying Insurance

Choosing an insurance company

Regardless of how you buy insurance, your policy will be issued by an insurance company.

Before accepting an insurance company recommended to you by your agent or broker, or choosing an insurance company yourself, contact the insurance regulator in your province or territory to confirm that the insurance company is licensed to do business where you live. Dealing with a licensed insurance company will ensure that you have access to an independent dispute resolution system if you need to file a complaint.

Make sure the company is a member of Assuris (www.assuris.ca) or PACICC, the Property and Casualty Insurance Compensation Corporation (www.pacicc.com).

If your life insurance company fails, Assuris protects your benefits up to certain amounts. A life insurance company authorized to sell insurance policies in Canada is required by the federal, provincial and territorial regulators to become a member of Assuris.

If your property and casualty insurance company fails, PACICC protects your benefits up to certain amounts. A property and casualty insurance company authorized to sell insurance policies in Canada is required by the federal, provincial and territorial regulators to become a member of PACICC.