August 24, 2011
The Financial Services Commission of Ontario (FSCO) is warning consumers that Lima Automobile Insurance Company is not licensed to do business in Ontario. Consumers who have purchased auto insurance from this company do not have valid coverage.
FSCO found that Lima Automobile Insurance Company is collecting premiums from clients without providing coverage. Consumers who have been contacted by this company were offered a discount if they paid the insurance premium in advance. FSCO also found that individuals from this company represented themselves as licensed insurance agents and insurers.
If consumers purchase insurance from insurers that are not licensed in the province, they are not protected under the Insurance Act and the regulations that govern Ontario’s licensed insurance companies.
An Ontario insurance broker or agent can provide information and advice on the risks involved with purchasing different insurance products.