Processing Direct Payments to Service Providers for "Listed Expenses"

No. A-02/16
Property &
Casualty – Auto
To the attention of all insurance companies licensed to transact auto insurance in Ontario 

NOTE: The bulletins that are posted on this website are provided for historical reference purposes. The information in these bulletins is accurate on the date the information is published, but is subject to change and may be replaced by more recent bulletins.

An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person's or entity's licence on the Licensing Link section of FSCO's website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.

These bulletins may include forms that are no longer up-to-date or accurate. Readers should visit the forms section of the FSCO website, to ensure they are using the most recent version of a FSCO form.

The Insurance Act prohibits insurers from directly paying unlicensed service providers for specified goods or services ("listed expenses") provided to injured claimants.

Before issuing payment to a service provider for listed expenses, insurers must check FSCO's Public Registry of Licensed Service Providers to ensure that the licence of the service provider is in good standing.

An insurer that does not confirm the status of a service provider for payment of listed expenses risks violating the Insurance Act and may be subject to enforcement action.

Service provider trade names

Insurers can issue payment to a licensed service provider in a registered trade name if that trade name appears on FSCO's Public Registry of Licensed Service Providers. Insurers must check the registry before every payment to verify the legal and trade names of a service provider.

Insurers should be mindful that trade names have expiration dates and that beginning January 2016, FSCO will automatically remove expired trade names from the registry for service providers.

If a service provider's trade name no longer appears on the registry, insurers can continue to issue direct payment to the service provider in its legal name as identified on the registry.

Brian Mills
Chief Executive Officer and
Superintendent of Financial Services

January 8, 2016

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