IB-2025-01: New AIC Restricted Certificate of Authority types for sale finance companies
This bulletin is applicable to all sales finance companies looking to sell Guaranteed Asset Protection, equipment warranty, or motor vehicle dealership loyalty programs and ancillary motor vehicle protection products.
New AIC Restricted Certificate of Authority types for sale finance companies
The Alberta Insurance Council (AIC) has issued IB-2025-01: New AIC Restricted Certificate of Authority types for sale finance companies, which contains important information about new licensing requirements for sales finance companies wishing to sell certain insurance products.
As per the Insurance Act, Guaranteed Asset Protection (GAP), equipment warranty, motor vehicle protection products, and certain motor vehicle warrant products are insurance products that must be underwritten by licensed insurance companies and sold by licensed agents and/or businesses with restricted certificates of authority.
Recognizing that sales finance companies may seek to sell these products, the AIC has created three new types of sales finance licenses:
- Sales Finance (GAP)
- Sales Finance (Equipment Warranty)
- Sales Finance (Motor vehicle dealership loyalty programs and ancillary motor vehicle protection products)
To ensure compliance under the Insurance Act, any sales finance company wishing to sell these products will be required to ensure the products are underwritten by licensed insurers; and hold the associated type of Restricted Certificate of Authority with the AIC that authorizes the sale of those products.
Applications can be submitted by logging into the AIC Portal. Applications will be reviewed in the order they are received, and the AIC’s standard processing time is 15 business days.
You are strongly encouraged to read the AIC’s Information Bulletin to get the full details about the new licenses.
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