Consumer Protection Bond
As an exclusive benefit of IBAS membership, brokerages automatically receive coverage under an association-wide umbrella surety bond — underwritten by SGI CANADA — that meets the statutory requirement to maintain a $20,000 consumer protection bond as a condition of licence. This eliminates the need for the members to purchase a bond on their own.
The IBAS Consumer Protection Fund (CPF) was established in 1997 to provide protection for consumers against loss of premiums, fees, or other benefits due to the insolvency of, fraudulent activity of, or contravention of prevailing provincial legislation by IBAS members. This served as an approved equivalency to the $20,000 Consumer Protection Bond required under General Insurance Council of Saskatchewan (GICS) bylaws — a significant member benefit that has saved IBAS members more than $2 million over the life of the program.
The introduction of The Insurance Act (effective January 1, 2020), however, removed the bond requirement from the GICS bylaws and instead enshrined it directly into legislation. The resulting restrictive provisions and wording in Act meant the CPF would no longer be recognized as a substitute for the bond requirement.
Therefore, to preserve member value and find an alternative pathway to support brokerages, IBAS — in conjunction with the Financial and Consumer Affairs Authority of Saskatchewan — approved a plan for IBAS to dissolve the structure of the CPF and rollover coverage into a new umbrella surety bond, purchased through a duly licensed carrier.
For more information, please contact firstname.lastname@example.org.