A British Columbia financial services tribunal has denied an appeal from TruNorth Warranty Plans of North America against the Superintendent of Financial Institutions Commission in the territory in regard to a cease and desist order levied against TruNorth last year.
Under terms of the 2019 order, TruNorth was ordered to immediately cease selling its warranty products in British Columbia and turn over copies of every warranty contract it had issued in the region.
In filing its appeal, TruNorth submitted the warranty products and services it provides to customers are not “insurance” as defined under the territory’s Insurance Act, or as contemplated under the Financial Institutions Act or its regulations, and accordingly it was not in breach of section 75 of the FIA. The company asked the decision be set aside. Alternatively, the company submitted the remedy provided for in the decision was excessive and should be varied.
In its ruling last month, the financial services tribunal said after carefully considering all evidence it found each grounds of appeal advanced by TruNorth failed, with the tribunal dismissing the appeal entirely.
“These warranties are costly, and they are insuring very costly heavy equipment. We want to make sure that truckers who purchase a warranty product here are doing so with confidence that it is subject to regulatory supervision in BC,” said Chris Carter, deputy superintendent of supervision of market conduct at the BC Financial Institutions Commission in 2019.
For more information, and to read the entirety of the appeal decision, please CLICK HERE.