FICOM Rules on BICO Indemnity Product – Issues Cease and Desist Order

FICOM Rules on BICO Indemnity Product – Issues Cease and Desist Order

In the matter of the Financial institution Act R.S.B.C. 1996, C 141 and BridgePoint Indemnity Company (Canada) Inc., FICOM ruled that BICO’s Certificate of Indemnity is a contract of insurance and that BICO is conducting insurance business. Hence, BICO is conducting insurance business in British Columbia without authorizations and is in breach of section 75 of the ACT.

FICOM order pursuant to Sections 244(2)(a), (e)(ii), and (f), and 238 of the Act that:

1) BridgePoint Indemnity Company (Canada) Inc. immediately cease conducting insurance business in the Province of British Columbia, including the advertising, soliciting, offering, sale, and adjusting of legal expenses insurance under the product names Legal Cost Protection, LegalProtect, and Trial Protect;

2) BridgePoint Indemnity Company (Canada) Inc. provide the Superintendent with a copy of every contract issued by it which insures risk located in British Columbia and is currently in force, within 10 days of the issuance of this Order; and

3) BridgePoint Indemnity Company (Canada) Inc. arrange for the assumption of all current contracts insuring risk located in British Columbia by an authorized insurance company, at the sole expense of BridgePoint Indemnity Company (Canada) Inc. and without penalty to any insured under those contracts, within 90 days of the date of this Order; or otherwise deal with current contracts in a manner satisfactory to the Superintendent.

TAKE NOTICE that BRIDGEPOINT INDEMNITY COMPANY (CANADA) INC. may request a hearing before the Superintendent under section 238(2)(a) of the Act or appeal to the Financial Services Tribunal under section 238(2)(b) of the Act.

Read more
http://www.fic.gov.bc.ca/pdf/enforcement/trust/fia20160630.pdf

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