(TORONTO) October 12, 2000 - An Ontario barter company has been banned from advertising and soliciting the sale of invalid insurance over its website.
The Cease and Desist Order issued by the Financial Services Commission of Ontario (FSCO) orders Executive Barter Exchange Inc., of Waterdown, Ontario to "immediately cease and desist advertising, publishing or soliciting the sale, promotion or availability of insurance products of insurers not licenced to do business in Ontario." This permanent order follows an interim order that was issued on May 4, 2000.
Executive Barter also agreed to post a notice on its website warning the public that anyone who has purchased insurance through Tri-Continental Exchange Ltd., Robert L. Brown or John Madsen, does not have valid insurance.
Dina Palozzi, Superintendent of FSCO said "this type of activity has to stop. It is putting people in Ontario at risk by purchasing this type of unlicensed insurance."
If people in possession of invalid insurance policies are involved in an accident, they will only be allowed minimal medical and rehabilitation benefits. They will not be allowed to claim wage loss benefits and have lost their right to sue. They are also personally liable for civil actions for the injuries of others who may be entitled to sue for injuries, pain and suffering.
The Cease and Desist notice also forces Executive Barter to provide FSCO with the names and addresses of all persons who paid a transaction fee to the barter company for insurance.
Copies of the Cease and Desist Orders and the Notice the company must post may be found on FSCO's website (www.fsco.gov.on.ca).
The Financial Services Commission of Ontario is the regulatory body governing automobile insurance in Ontario.
FSCO Media Contact: