Are Canadian consumers getting fleeced by the life insurance industry? : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Are Canadian consumers getting fleeced by the life insurance industry?

July 8, 2014

Are Canadian consumers getting fleeced by the life insurance industry?

Halifax, NS (RPRN) 07/08/14 — Consumers have had enough and they want to be protected from illegal commercial practices…

 Forty years without meaningful changes in any regulations and this is how we can summarize the state of the life insurance industry in Canada. It is the consumers who have paid the price of this regulatory failure. Stronger regulations are needed but the Quebec Effect jeopardizes the effectiveness of any new regulations which is the conclusion of the Financial Services Consumer Alliance.

  “In the life insurance industry, we are dealing with weak laws that have never been updated and still insurers have gone out of their way not to respect current regulations. When I ask any insiders to describe the industry, they all use the same description. It is like a frontier town in the old far west,” stated Richard Proteau, President of FSCA. “There are so many wrongdoings that it is difficult to know where to start. Currently our focus is Universal Life policies which were sold using fraudulent and misleading practices. If you bought a Universal Life, we want to hear your complaint which can be registered at  http://www.consumerights.ca/database.html. The same applies if you are an orphan policy owner and you have not seen an agent in 5 years.”

 FSCA is concerned by the insurers’ lack of respect of the law and has determined this is the principal roadblock to any strengthening of regulations in order to increase consumer protection.

“This problem can only be qualified as a Catch 22 situation,” Richard Proteau continued. “What is the use of strong laws if they are not respected? This is why consumers have to address this problem.”

 This Effect results in more infractions in Quebec in one month compared to the rest of the country in one year. Is this because Quebec has the strongest laws? Evidences have proven the contrary. The conclusion reached is that the Quebec regulator named the AMF has allowed insurers to use commercial practices that constitute violations of the law. “When you add this to a justice court system where the law can be applied selectively, this becomes the stuff of a nightmare for the victims of these practices.” said Richard Proteau.

 The solution to resolve this crisis is to confront it through different legal procedures in order to exact such a financial and political price that no other provinces will deceive the public in voting laws that they do not intend to enforce for everyone.

 “This is why I have so far engaged the AMF in many legal duals. I am proceeding with a lawsuit but my goal is not to obtain justice. This is impossible when considering the bias judges have towards the AMF which has empowered its employees to engage in a variety of questionable activities. This provides me the opportunity to subpoena a previous and current employee of the AMF in order to ask three simple questions. Why did you hide a fraud committed by an insurer and who told you to do it? Why were the proofs of this fraud destroyed?” declared Richard Proteau.

 FSCA believes these answers are crucial in moving towards a regulatory environment that actually protects consumers and not the bottom line of insurers. A wedge must be driven between employees of the regulator and the insurers when we consider the latest statement of a Manulife employee in the Insurance Journal who made public threats against the career of advisors who have decided to help their clients in setting up a life settlement which is a legal option in Quebec. He gave the impression that the regulator could be used to sanction advisors who would for example help terminally ill policy owners get an advance on their death benefit through a loan settlement. It would be a lot more profitable for the insurers if these terminally ill people cancel their policies instead paying the death benefit. FSCA considers this to be an inacceptable exploitation of consumers who are facing hard times and expected the regulator to refute these allegations but instead it decided to remain silent reinforcing these threats.

 “The life insurance industry is not well at all. The only medicine is multiple class actions and the FSCA is ready to proceed with two of these in a very near future. It is sad for me to announce that in one of these class actions, the regulators and provincial governments will be included as defendants.” In making this declaration, Richard Proteau added “When laws are a convenience for some and an obligation for others, there cannot be a just society; there cannot be a lawful society; conditions necessary for consumers to have confidence in the free market.”

 Financial Services Consumer Alliance

 The Financial Services Consumer Alliance (FSCA) is a national alliance of consumers created exclusively to defend and promote the specific rights and interests of consumers who have purchased a financial product.

Media Contact Name: Richard Proteau
Media Phone: 902-331-1938
Media Web Address: www.consumerights.ca
Click here to see all news from this author/company

Filed Under: BANKING AND FINANCIAL NEWS, CANADIAN NEWS, PRESS RELEASE

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Newborn Foundation Selected Among First 
Global Innovation Fund Grant Recipients

Saint Paul, MN 02/09/16 · Announcement at GIF launch event in London highlights...

The Gamifiers Partners With Livecube to Bring Gamified Event Engagement to the Middle East

DUBAI/NEW YORK 02/02/16 · TECH NEWS - The Gamifiers, the leading specialized gamification...

Rugby North to Launch Canada’s First Professional Rugby League

Toronto, ON 02/02/16 ·  The country that introduced rugby to North America...

Dominion Lending Centres Edge Financial Welcomes New Mortgage Agents On Board

Toronto, Ontario 01/27/16 · The mortgage agents behind the site GTAMortgagePros.com  –...

Black Films Matter supports Movie Binges on Oscar Night

HOLLYWOOD, CA 01/26/16 · The Advocacy group Black Films Matter is supporting...

The Big Freeze: America Due Extreme Snowstorms

NEW YORK 01/23/16 · Founder of GridLocate.com, offers advice to US residents...

Clean the world Canada choisit Moisson Montréal

Montréal, Québec 01/05/16 · Clean the World Canada choisit Moisson Montréal comme...

All I Want for Christmas is for Trump to Shut Up is Island's new National Anthem

Cambridge, Mass 12/22/15 ·  A satirical Christmas song poking fun at real...

Gotham City Networking, Inc. Honors Raj Goel with Networker of the Year Award

New York, NY 12/16/15 · On Wednesday, December 2nd, Gotham City Networking, Inc....

Brainlink International Received Renowned Award for a Corporate SOP Culture That Outshines the Rest

New York, NY 12/15/15 · On Thursday, December 3rd, 2015, SmartCEO awarded Brainlink...

Livecube Enhances Its Social Engagement App to Be a Single Dashboard for Event Organizers

NEW YORK 12/03/15 · Enhanced features include real-time direct chat between attendees,...

MLBC offers new IFRS consulting service

Toronto, Ontario 12/01/15 · MLBC offers new IFRS consulting service New IFRS accounting...

For a fistful of dollars two gangs continue to fleece innocent families

Dallas, Texas 12/01/15 · Jaime Escalona speaking on behalf of COViSAL denounces...