Motor Vehicle Dealership Loyalty Products Classified as Insurance
Published June 29, 2021
BC Financial Services Authority (BCFSA) recently conducted a review of motor vehicle dealership loyalty products offered in British Columbia and concluded these products meet the definition of insurance. This classification means that these loyalty products must be structured, marketed and sold as insurance products in accordance with regulatory requirements.
Motor vehicle dealership loyalty products provide a discount on a future replacement vehicle at the originating dealership in the event of damage to or loss of the purchased vehicle. With this classification, these products must be underwritten by a BC authorized insurance company and sold by insurance agents and salespersons licensed by the Insurance Council.
BCFSA published a Regulatory Statement on June 18, 2021, setting out its position on motor vehicle dealership loyalty products offered in BC. For more information or to view the statement, visit BCFSA’s website