Your rights and duties as insured person

Buying life insurance is a big decision and you deserve to feel confident that you are getting the right product for you and your loved ones. In Ontario, life insurance is sold by insurance companies and agents that are licensed by the Financial Services Regulatory Authority of Ontario (FSRA).

Your rights

Life insurance agents, brokers and companies have obligations and responsibilities to you. They must:

• be licensed by FSRA and comply with the law
• provide a clear statement of the insurance policy, its limitations, exclusions, terms and which features and benefits are guaranteed, and which are not
• disclose to you in writing the names of your life insurance providers that they represent
• disclose to you in writing any conflicts of interest that they may have

In addition to legal requirements, insurance agents should follow industry best practices on their promises outlined in the insurance contract. They have to explain how your policy will work and recommend options based on your needs BEFORE you buy a policy. They also should:

• provide a letter of engagement that describes the services you can expect from them during and after the sales transaction
• provide their contact information and license number
• provide written information about the products that they are recommending to you
• ensure that they are always available for consultation during business hours
• provide a copy of your application form and contract for your own storage
• allow you to change your mind and ask for a full refund at least 10 days of receiving your policy

When working with a life and health insurance agent or company, you have the right to:

• Request contact information such as address, telephone, email and licence number
• Have a licensed agent available for contact at your request during business hours
• Receive advice when needed, regardless of how you purchased the insurance
• Ask for a copy of your application form and contract for your own storage
• Shop around and compare policies and costs so that you can find the one that best suits your needs

Your responsibilities

If an insurance agent or company is licensed by FSRA that means safeguards are in place to protect your rights, but you need to be aware of your responsibilities too.

• Check and verify all information you provide on your application form thoroughly before signing it. Withholding or misrepresenting information could make your policy null and void. Your signature authorizes the insurer to confirm your medical history on a confidential basis.
• Review the policy thoroughly when it is delivered to you. Check and verify all information in the policy. Any mistakes or misrepresentations can invalidate your policy. If the policy is not what you expected, speak to the insurance agent or company. For life insurance, if you decide you no longer wish to buy the policy you can change your mind within 10 days, and in some cases you have up to 20 days to change your mind.
• Ask questions about anything you do not understand.
• Keep your policy with your financial papers along with your agent’s name and number. Let your family know where you keep your policy. For life insurance, give a copy of your policy to your beneficiary.
• Pay your premiums on time.
• Review your insurance needs regularly. Your needs may change as your family changes.
• If you have dependents on a life insurance policy, be sure to check if they are still insured as they age. Some policies only insure children up to age 21.

Understanding your rights and responsibilities gives you confidence in the choices you make.