Consumer
What is Facility Association?
All automobiles must be properly insured before being put on the road. Working with insurance companies, the purpose of Facility Association is to ensure the availability of automobile insurance to owners, lessees and licensed drivers of motor vehicles who are eligible to obtain it. In other words, Facility Association is the insurer of last resort to provide coverage when no other option is available.
Facility Association doesn’t issue insurance policies. Rather, we work with specific insurance companies that issue policies, collect premiums and handle claims on our behalf. If you are insured through Facility Association, it is likely because of your driving record or accident history.
How is Facility Association different from a regular insurance company?
Facility Association doesn’t issue insurance policies. Rather, we work with specific insurance companies that issue policies, collect premiums and handle claims on our behalf.
Why am I insured by Facility Association and not a regular insurance company?
If you are insured through Facility Association, it is likely because of your driving record or accident history.
Can I get out of Facility Association and get a better rate with another insurance company?
Yes. For every year you maintain a clean driving record, don’t have any accidents or traffic tickets you are earning the opportunity to achieve a better rate. If you are able to keep a clean driving record for several consecutive years, you will likely have the option to find a better rate with an regular insurance company.
If I’m insured through Facility Association, what are my payment options?
You have three options to pay your premium.
One option is to pay your insurance representative directly. As a rule, your insurance representative will require payment in full in the form of cash, money order or certified cheque. Some insurance representatives may offer their own financing arrangements.
Another option is monthly payment plans offered by insurance companies (servicing carriers). If you are a resident of Ontario or Newfoundland and Labrador, you are eligible for a monthly payment plan if the annual policy premium exceeds $300 and you have had no more than one policy cancellation for non-payment in the past 3 years. There is a maximum finance charge applicable based on provincial regulations.
If you are resident of Nova Scotia, New Brunswick, Prince Edward Island, Alberta or any of the Territories, speak to your insurance representative to find out what options are available and how the payment plan operates. Applicable finance charges may vary from jurisdiction to jurisdiction.
The third option for payment is through a Premium Finance Company. Your insurance representative may offer an option to finance the premium through a premium finance company. A down payment is required and the balance of the premium is collected via monthly instalments. Speak with your insurance representative to determine whether this option is available and how this method of premium financing will work for you.
Regardless of which payment option you choose, it is important to make your monthly payment on-time and in-full. By doing so, it helps the process of moving out of Facility Association and your ability to find a lower premium.
Brokers & Agents
I am a broker/agent and need a quote for Facility Association business, can you help me?
You need to contact your Servicing Carrier. They cannot give you a quote, but they will explain the rating to help you work out the quote.
Can I charge a service charge over and above the Facility Association commission schedule?
No. Brokers and agents must charge the Facility Association commission schedule found in the Manual of Rules and Rates and no other service fees can be added. You may charge the cost of ordering an MVR or Autoplus at the rate you are paying for these reports if you need this information to properly underwrite the risk.
How do I get an updated Manual of Rules and Rates?
For the most recent and updated manual of rules and rates, click here.
What if I disagree with how the Servicing Carrier has rated my client’s policy?
If after discussing with the underwriter, you still disagree you must first escalate your concern to the Facility Association Project Manager at the Servicing Carrier. If there is still no resolution, you can appeal the decision by sending your concerns in writing to the Servicing Carrier.
Please refer to the Appeal Procedures.
I have a risk that I want to move to the voluntary market, but I do not want my client penalized by a short rate cancellation. How can I help my client?
Good news. In Facility Association when a risk (excluding seasonal recreational vehicles) is cancelled and placed in the voluntary market, even it if is a non-standard market, the risk is cancelled by a pro rata cancellation method. The Servicing Carrier may request proof that the policy was placed in a voluntary market.
How can I get a contract to write business through Facility Association?
Brokers and agents will need to complete the Application for appointment to a Servicing Carrier form.
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