OMVIC and FSRA warn dealers off Assureway GAP insurance products

On March 6, 2026, OMVIC issued a dealer bulletin flagging a Financial Services Regulatory Authority (FSRA) warning issued eight days earlier on February 26, 2026. FSRA found that Assureway Protection Corporation has been selling Guaranteed Asset Protection (GAP) products on new and used vehicles in Ontario without an Ontario insurance licence and that it markets products naming insurers without valid policy issuance. OMVIC’s bulletin then reminded registered dealers of their own duties when an F&I product is offered through the showroom.

What FSRA found

FSRA is the regulator for insurers and insurance intermediaries in Ontario. Its February 26, 2026 warning identified four problems with Assureway Protection Corporation:

• It provides GAP products tied to new and used vehicle purchases.
• It is not licensed under Ontario insurance law.
• It has no authorization to conduct insurance business in the province.
• It markets products naming insurers without those insurers having issued valid policies.

OMVIC’s bulletin notes that FSRA cannot recover premiums or refunds tied to Assureway GAP products. Consumers who paid for one of these products are exposed if a total-loss event triggers the gap they thought they had bought.

Why this matters for an MVDA registrant

A dealer who offers, recommends, or sells an F&I product alongside a vehicle is the registrant the consumer is dealing with. The Code of Ethics treats that responsibility on its face.

Section 4(2) of the Code of Ethics requires that all representations made by or on behalf of the registrant in connection with trading in motor vehicles be “legal, decent, ethical and truthful.” Selling an unlicensed insurance-style product, even through a third party, is not a legal representation when the product itself is unlawful in Ontario.

Section 7(1) requires the registrant to ensure that all documents used in the course of a trade in a motor vehicle are current and comply with the law. A GAP “policy” issued by an unlicensed entity is not a document that complies with insurance law.

Section 9 carries the rest of the weight: a registrant must not engage in any act that would reasonably be regarded as unprofessional (s. 9(1)), must act with honesty, integrity, and fairness (s. 9(2)), and must demonstrate reasonable knowledge, skill, judgment, and competence in providing services (s. 9(4)). Selling a customer a product that does not exist as a real insurance policy fails the competence test.

What the bulletin asks dealers to do

OMVIC’s bulletin sets out three obligations, quoting the language from the bulletin:

1. “take reasonable steps to ensure that all products offered or sold or recommended in connection with a vehicle sale are sold in a legally compliant manner.”
2. Provide all required consumer disclosures in writing in a manner that is clear, comprehensible, prominent, and not misleading.
3. If the dealership has been involved in selling Assureway products, review contracts with the provider and “seek independent legal advice about steps that should be taken.”

The disclosure obligation tracks Code of Ethics s. 4(2) and the contract-content rules in O. Reg. 333/08 s. 39(2), specifically paragraph 15 covering items and inducements such as guarantees, extended warranties, and service plans. Any optional product offered with the vehicle has to be itemised in the contract. The used-vehicle counterpart in s. 40(2) carries the same itemization obligation by cross-reference.

Where to send complaints

OMVIC’s bulletin lists two complaint paths. They handle different things and dealers should know both.

• FSRA, for complaints about Assureway or any insurance-style product issuer: [email protected] or 1-800-668-0128.
• OMVIC, for complaints about a dealer’s sales practices: 1-800-943-6002.

A consumer who bought an Assureway product through a dealer may have grounds with both regulators. Dealers should not direct a consumer to one path over the other.

Update: FSRA compliance orders, June 12, 2026

On April 16, 2026, FSRA announced compliance orders against Assureway Protection Corporation and Shiraz Hussain, the company’s sole officer and director, moving the February warning into enforcement. FSRA found that both contravened the Insurance Act: carrying on business as an insurer, or engaging in acts constituting the business of insurance, without a licence (s. 40(2)), and engaging in unfair or deceptive acts or practices (s. 439 and s. 8 of Authority Rule 2020-002).

FSRA had issued its notice of proposal on March 3, 2026. Neither Assureway nor Hussain requested a hearing within the statutory window, so the orders took effect as proposed. As reported by Canadian Underwriter on April 22, 2026, the orders require Assureway to notify all motor vehicle dealers that it is not authorized to provide insurance, stop all insurance business in Ontario including its “TruGap Protection” GAP product, stop collecting premiums, and remove GAP insurance references from its website and marketing. FSRA’s findings included that products were marketed as underwritten by Lloyd’s when no Lloyd’s policy backed them.

For dealers, the practical change is the notification requirement. A dealership that offered or sold Assureway products should expect direct notice of the action, and the duties this post describes under s. 4(2), s. 7(1), and s. 9 of the Code of Ethics apply with a regulator’s formal findings now on the record. The bulletin’s advice to review provider contracts and seek independent legal advice stands.

What to learn

• An F&I product sold through the showroom is the dealer’s responsibility under Code of Ethics s. 4(2), s. 7(1), and s. 9, even if a third party issues the contract.
• Verify that any insurance-style product is offered by an FSRA-licensed insurer or intermediary. If FSRA has not authorized the issuer, the product is not lawful and the dealer cannot meet s. 7(1).
• Document all F&I disclosures in writing in plain language. The disclosure must be clear, comprehensible, and prominent, and the disclosure standard in s. 4(2) of the Code of Ethics applies whether the product is paid for in cash, financed, or rolled into a lease.