The BC Financial Services Authority (BCFSA) and the Insurance Council of BC (IC) continue to stand behind their positions with respect to GAP Insurance.
It has come to the attention of the aforementioned authorities and the VSA that motor vehicle dealerships are engaging in the business of Guaranteed Asset Protection (GAP) automobile insurance, despite previous warnings, regulatory statements and Council Notice regarding this matter.
The Insurance Council’s position is that it will not license dealerships to engage in this type of insurance business. Motor vehicle dealerships are prohibited from engaging in Guaranteed Asset Protection (GAP) insurance business.
Should the Insurance Council take action against a motor dealer, the Registrar of Motor Dealers is required to review that action to protect the public interest. A dealer license is granted on the condition that dealership business practices meet all applicable laws and regulations, not just those under the jurisdiction of the VSA.