Superintendent of Insurance – Interpretation Bulletin 05-2024: Motor vehicle warranty contracts, dealership loyalty programs and vehicle protection products

Motor vehicle warranty contracts, dealership loyalty programs, and vehicle protection products

The Superintendent of Insurance has released an Interpretation Bulletin to provide clarity about the classification of products sold by Alberta auto dealerships and equipment dealers. This bulletin addresses the classification of motor vehicle warranty contracts, dealership loyalty programs, and vehicle protection products.

As per the bulletin, certain motor vehicle warranty products, dealership loyalty programs, and ancillary motor vehicle protection products qualify as insurance and must comply with Alberta’s Insurance Act. These products must be underwritten by a licensed insurer and sold through a licensed agent.

Read the Superintendent of Insurance's Interpretation Bulletin

As well, in conjunction with the Superintendent’s Bulletin, AIC has released Information Bulletin-2024-01: New Alberta Insurance Council (AIC) Restricted Business License insurance type – Motor vehicle warranty contract, dealership loyalty programs, and vehicle protection products, which contains important licensing information related to a new restricted business license type required by automobile dealerships and equipment dealers to sell dealership loyalty programs and vehicle protection products.

Read the AIC's Information Bulletin

All auto dealerships, equipment dealers, restricted business license holders, and insurers are encouraged to review both the Superintendent’s Bulletin and AIC’s Information Bulletin and take necessary steps to ensure they are compliant with these new requirements.