TD Insurance fined over $3 million
The Financial Services Commission of Ontario’s Superintendent of Financial Institutions slapped the four insurance subsidiaries of TD Bank with whopping fines totalling $3.2 million
The offence: charging automobile insurance rates other than those authorized by the Ontario government. In Ontario, auto insurers must comply with a strict pricing framework. They cannot change their rates at will. They must request permission from the government to do so, and it may take a few months to receive a reply, in either case.
TD was informed in January that it had broken the rules. The penalty was handed down on July 6. The subsidiaries will soon receive the bill and will have 30 days to pay the fine.
Here are the details of the fines imposed:
|
Subsidiary sanctioned |
Fine |
|
TD Home and Auto Insurance Company |
$600,000 |
|
TD General Insurance Company |
$600,000 |
|
Security National Insurance Company |
$1,400,000 |
|
Primmum Insurance Company |
$600,000 |
|
TOTAL |
$3,200,000 |
Source: Financial Services Commission of Ontario