The following provides answers to some of the questions most frequently asked of FSCO's contact centre staff. Questions and answers are sorted either by insurance or pensions. Frequently asked questions about the Motor Vehicle Accident Claims Fund (MVACF) are posted elsewhere on this website.
Mortgage Brokers Frequently Asked Questions
Insurance - General
- How do I obtain an insurance quote?
- How do I choose an insurance agent or broker?
- What is the role of an insurance agent or broker?
- How do I choose an insurance company?
Automobile Insurance
- What is the mandatory amount of automobile insurance that I must have to drive in Ontario?
- What additional automobile insurance coverage can I buy?
- Why is there an optional deductible for Direct Compensation - Property Damage?
- I have medical benefits through a plan at work. Why do I need to purchase statutory accident benefits on my auto insurance policy?
- What factors affect my automobile insurance premium?
- How do I qualify for the retiree discount?
- Does my company have to renew my automobile insurance policy?
- What is no-fault insurance?
- How does my company determine whether I am at fault in an accident?
- What can I do if I disagree with my company in fault assessment?
- The police officer who attended the accident scene told me I was not at-fault in the accident and charged the other driver. Why did my insurance company tell me that I am at-fault?
- How does an at-fault accident affect my premium?
- I lent my car to a friend who had an accident. Will that affect my premium?
Pensions
- Changes to the Rules for Ontario Locked-in Accounts (2008)
- How are pension plans regulated in Ontario?
- How can I find out if my pension plan is registered in Ontario?
- I’m an employee of a bank and a member of a bank pension plan. Is my plan regulated by FSCO and subject to the Ontario Pension Benefits Act?
- How can I get information about my pension plan?
- My employer has gone bankrupt. Is my pension money safe?
- Does the Pension Benefit Guarantee Fund protect all Ontario-registered pension plans?
- I want access to the funds in my pension plan. Why are the funds “locked-in”?
- I have a locked-in retirement account. Can I get my money out?
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Insurance - General
Question: How do I obtain an insurance quote?
Answer: Insurance quotes are distributed by various means in Ontario. Traditionally, an agent or broker would provide this information. Today, employer groups, Internet or telephone call centres are also used to provide quotes. In any case, always ensure that you are dealing with a licensed representative and insurance company. Remember, it is important to obtain more than one quote when shopping for insurance.
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Q: How do I choose an insurance agent or broker?
A: Insurance agents and brokers are licensed to negotiate insurance contracts and to service policyholders. Insurance agents usually represent one insurance company or related groups of insurance companies, while brokers typically represent several insurance companies.
When choosing an agent or broker you should:
- ask relatives, friends, and business associates for referrals;
- make sure the agent or broker is licensed by the Financial Services Commission of Ontario (FSCO), if an agent, or by the Registered Insurance Brokers of Ontario, if a broker;
- try and find an agent or broker with special professional qualifications or years of experience.
Visit the Licensing & Registration section of this website to learn more about agents licensed in Ontario.
Q: What is the role of an insurance agent or broker?
A: Insurance agents and brokers provide services such as:
- advising you on the right insurance product to fit your insurance needs;
- explaining the cost and coverage of your policies;
- advising you about policy exclusions and limitations, and how they affect you;
- informing you of new insurance policies or products;
- reviewing your insurance portfolio with you every year;
- answering your insurance questions and helping you with any claims.
Q: How do I choose an insurance company?
A: Insurance companies like agents and brokers are licensed to sell various insurance products. Just like choosing an insurance agent or broker, ask relatives, friends, and business associates for referrals. Another good source of information about a company’s licensing status is FSCO, which regulates and licences insurance companies in the province.
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Automobile Insurance
Q: What is the mandatory amount of automobile insurance that I must have to drive in Ontario?
A: The mandatory automobile insurance coverages in Ontario are: $200,000 of third party liability, statutory accident benefits, uninsured automobile and direct compensation-property damage.
Please refer to Understanding Automobile Insurance for additional information.
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Q: What additional automobile insurance coverage can I buy?
A: In addition to the mandatory insurance, drivers can purchase coverages such as:
- Collision coverage: this coverage pays for repair or replacement of your vehicle if it collides with another vehicle, flips over, or crashes into an object, as a result of accidents that you cause.
- Comprehensive coverage: this coverage pays for losses from incidents other than a collision, such as fire, falling objects, theft and vandalism.
- Increased third-party liability limit: the mandatory amount is $200,000 but you can increase the amount up to the limits the company provides. Additional protection of $1,000,000 is usually purchased.
- Underinsured motorist coverage: part of Family Protection Coverage, it protects you or an eligible member of your family, to the same limits as your Third-Party Liability coverage, if you are involved in an automobile accident where you are not at fault, with someone who carries less insurance, no insurance, or is an unidentified driver.
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Q: Why is there an optional deductible for Direct Compensation - Property Damage?
A: A deductible is the portion of a claim for damages to your vehicle that you must pay. Higher deductibles result in lower premiums, but higher financial risk to you. A deductible for Direct Compensation - Property Damage provides you with an additional option to lower your premium.
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Q: I have medical benefits through a plan at work. Why do I need to purchase statutory accident benefits on my auto insurance policy?
A: In Ontario, automobile insurance is mandatory. The government has a responsibility to provide a product which addresses the needs of as many insurance consumers as possible and ensures that the interest of the public at large is protected. This is why all vehicles operated on the road must carry certain mandatory coverages. These coverages are liability, statutory accident benefits, uninsured automobile and direct compensation-property damage.
The statutory accident benefits provided to persons insured are detailed in the Statutory Accident Benefits Schedule (SABS). Coverage includes, among other things, income replacement benefits, supplementary medical and rehabilitation benefits, death and funeral benefits and long-term care benefits. These benefits are available not only to the owner of the policy, but they could also be accessed by passengers in the vehicle, as well as pedestrians, who may not have coverage under their own automobile insurance policy.
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Q: What factors affect my automobile insurance premium?
A: Insurance companies use a variety of risk factors to determine a premium. The cost of automobile insurance for different drivers varies as the level of risk for the insurance companies varies. Factors that could affect your premiums include:
- driving history, including previous at-fault accidents and driving violations;
- type of vehicle including make, model and model year;
- where you keep and drive your vehicle;
- the age and gender, along with the number of years licensed;
- the number of kilometres driven in a year;
- whether the vehicle is used for pleasure, commuting or business purposes.
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Q: How do I qualify for the retiree discount?
A: A premium discount, which applies to the statutory accident benefits portion of your premium, is available to retirees aged 65 or older. If you are younger than 65, but receive Canada Pension Plan or Quebec Pension Plan payment, or a pension registered under the Income Tax Act, you are also eligible to receive this premium discount.
Ask your insurer or broker for the declaration form for the retiree discount. It must be signed and returned before the discount can be implemented.
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Q: Does my company have to renew my automobile insurance policy?
A: In Ontario, insurance companies must file, with the Financial Services Commission of Ontario, the conditions under which they will not renew a contract. If an insurance company decides not to renew your policy, it must notify you in writing at least 30 days before the expiration date of your policy. The notice must quote the reason it will not renew. The following are examples of reasons that companies use for non-renewal of a policy:
- you have had two or more at-fault accidents within the past six years;
- you have been convicted of a major or several minor driving violations in the last three years;
- you added a vehicle which the company does not insure, such as a commercial truck or an expensive sports car.
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Q: What is no-fault insurance?
A: No-fault insurance means that if you are injured or your car is damaged in an accident, then you deal with your own insurance company, regardless of who is at fault. You don’t have to go after the at-fault driver for vehicle damage reports and statutory accident benefits compensation.
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Q: How does my company determine whether I am at fault in an accident?
A: In Ontario, companies are required to use Regulation 668, Fault Determination Rules, to assess fault in an accident for purposes of vehicle damage. These rules:
- cover more than 40 accident situations using diagrams to illustrate specific occurrences;
- can be applied to almost every possible road collision scenario; and,
- are applied regardless of road or weather conditions, visibility, point of impact on the vehicles, or the actions of pedestrians.
These rules help insurance companies deal with vehicle damage claims quickly and economically.
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Q: What can I do if I disagree with my company in fault assessment?
A: If you disagree with your company in the assessment of fault in an accident, you should contact the Consumer Complaint Officer at your insurance company and request that the assessment be reviewed by a senior representative of the company. If you continue to disagree, you may choose to go to court.
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Q: The police officer who attended the accident scene told me I was not at-fault in the accident. Why did my insurance company tell me that I am at-fault?
A: A police officer may say that neither of the drivers were at-fault in a situation such as a vehicle being unable to stop on an icy road and rear-ending another vehicle. Such a comment relates to the laying of charges and should not be taken as an opinion about how the Fault Determination Rules apply to an auto insurance claim. In a case like this, the insurer would apply the rule stating that a vehicle which rear-ends another is at-fault.
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Q: How does an at-fault accident affect my premium?
A: In many cases, if you have your first at-fault accident after six or more years of claims-free and conviction-free driving, your premium may not change or may increase by a relatively small amount. Some insurance companies offer endorsements to drivers that will allow them to maintain their driving record or premium after a first at-fault accident. Most companies will change your driving record to reflect the accident and increase your premium by a small amount. You will need to regain your six years of accident-free driving before you return to lower premiums.
If this is your second at-fault accident in the last six years, you can expect your premiums to increase quite significantly.
If you have any convictions or cancellations of a policy, in addition to an at-fault accident, or are an inexperienced driver with an at-fault accident, you may be considered to be a high-risk driver and be placed with an insurer that specializes in these types of risks.
When you are shopping around for insurance, you should always ask the broker or agent how your premiums will be affected after an at-fault accident.
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Q: I lent my car to a friend who had an accident. Will that affect my premium?
A: As the owner of the vehicle, you are responsible for anyone who drives your vehicle with your permission. If your friend has an at-fault accident while driving your vehicle, the accident will become part of your driving record and will affect your insurance premium.
Please refer to Understanding Automobile Insurance for additional information.
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Pensions
Q: How are pension plans regulated in Ontario?
A: Pension plans registered in Ontario are required to comply with the Ontario Pension Benefits Act. FSCO regulates compliance with the Act. This includes oversight of the requirements for plan documents and amendments, annual filings, disclosure to members, financial reporting and other compliance matters.
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Q: How can I find out if my pension plan is registered in Ontario?
A: Most Ontario registered pension plans are listed in FSCO's Pension Plan Information Access, or you can check with your plan administrator.
Certain plans are excluded from Pension Plan Information Access for privacy reasons. Also, if your employer has locations in other provinces, your pension plan may be registered in another jurisdiction. As noted below, pensions of employees in federally-regulated employment are not regulated by FSCO.
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Q: I’m an employee of a bank and a member of a bank pension plan. Is my plan regulated by FSCO and subject to the Ontario Pension Benefits Act?
A: No, the pension plans of banks, airlines, railways and other companies regulated by the federal government are regulated by the federal Office of the Superintendent of Financial Institutions which may be contacted through http://www.osfi-bsif.gc.ca .
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Q: How can I get information about my pension plan?
A: Your plan administrator is your first source of information on the pension plan. As well as providing information required by the Pension Benefits Act, your administrator is available to answer your pension plan questions.
A complete list of the information that your administrator must provide can be found at Your Pension Rights, in the section Information Provided to Plan Members on page 46.
Contact information for the administrator and information on the status of pension plan filings for most Ontario pension plans is available through FSCO's Pension Plan Information Access. If you still cannot obtain the information you need, you may wish to access FSCO’s complaint resolution procedure.
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Q: My employer has gone bankrupt. Is my pension money safe?
A: To protect your pension benefits, the Pension Benefits Act requires that contributions to a pension plan, and the related investment income, be held in a pension fund which is separate from the employer.
With the bankruptcy, FSCO will appoint an administrator to protect the interests of the pension plan members. The administrator will take control of the pension plan and pension fund and will wind up the plan. Where there are not sufficient assets to provide all benefits, limited protection is provided by the Pension Benefits Guarantee Fund.
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Q: Does the Pension Benefits Guarantee Fund protect all Ontario-registered pension plans?
A: No, the Pension Benefits Guarantee Fund (PBGF) provides limited protection for single-employer defined-benefit pension plans. No PBGF coverage is provided for defined-contribution pension plans; these plans provide for an accumulation of contributions and do not promise a fixed benefit. Likewise, multi-employer pension plans are excluded from PBGF coverage.
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Q: I want access to the funds in my pension plan. Why are the funds “locked-in”?
A: A principal objective of the Pension Benefits Act is to ensure that pension plan members have a measure of income security during their retirement years. To achieve this goal, pension-related funds must generally be locked-in until the plan member reaches pensionable age, at which time the funds must be used to provide the member and, if appropriate, the member’s spouse, with a regular income for the remainder of his or her life.
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Q: I have a locked-in retirement account. Can I get my money out?
A: In Ontario, your ability to take money from a locked-in retirement account is subject to certain rules set out in the Pension Benefits Act. Normally you must wait until 10 years prior to being eligible to start your pension, usually at age 55, before receiving a payment from your locked-in retirement plan. It should be noted that there are minimum and maximum limits on how much you can receive in any one year. However, in certain situations - such as financial hardship or shortened life expectancy - you may be eligible to apply for special access to the money in your locked-in retirement plan. For further information see Financial Hardship Unlocking.
Financial Services Commission of Ontario