Automotive

CBC: Paid a Broker for Insurance and Found Out She was Uninsured

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  • Apr 7th, 2021 3:06 pm
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Jul 29, 2019
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CBC: Paid a Broker for Insurance and Found Out She was Uninsured



She paid Aaxel Insurance Broker Ltd. which said that she needed to pay upfront of 1 year worth of payment in order to get lower rates with Intact Insurance. She later found out that her policy was cancelled due to non-payment. Now all the quotes she is getting is showing $10k because of the miss-payments from the broker. Aaxel has done nothing to give her money back. The broker does have fidelity insurance in case of a rogue employee. She is suing the broker now.

CBC contacted Intact and they removed that non-payment from her file.

I am shocked that this can happen. This is the first time hearing about this for me. You see in this forum that many people refer you to use a broker. It just means that we just need to be vigilant.
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Aug 30, 2020
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YEG/YYZ
Definitely crazy story, but sounds like it was an employee that went rogue. However he has a criminal record now.
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Mar 23, 2004
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Love how the CBC had to solve this for the person, Intact wouldn't budge with the explanation from the person I guess? :rolleyes: Gotta love insurance companies.

Should definitely sue the broker, should get some money in a settlement from their insurer, for these shenanigans.
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May 27, 2012
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Whitehorse, YT
This same exact thing happened a guy I know also
It took a while for him to solve the mess
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May 31, 2008
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Was just reading about this. At first I thought it was a phone scam but turns out it was a bad employee at the brokerage and supposedly ripped off others as well. Not sure how he thought he would get away with it.

I used to use a broker years ago but I find I get better rates by doing online quotes and comparing myself.
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Feb 8, 2014
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Insane.
And that she had to go public to get it fixed. Idiotic.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
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Mar 23, 2004
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devilsadvocate wrote: Was just reading about this. At first I thought it was a phone scam but turns out it was a bad employee at the brokerage and supposedly ripped off others as well. Not sure how he thought he would get away with it.
I was wondering this exact same thing--you'd think his plan was quick cash and flee the country or something but nope, apparently this was an ongoing thing and though he scammed a lot of ppl, he did get caught pretty easily it seems. Looks like he ran other "fake investment" scams too, good thing it [should be] game over for him.

If you google this fool's name, you'll find lots of stuff on intarwebs of people complaining about him scammin'.

The odd thing is a lot of people e-transferred the money directly to him in these "insurance lump sum" payments. Don't know what those people were thinking either. First of all don't e-transfer money to individuals if you're supposed to be dealing with a brokerage or other company, second of all these people never got official documents so how they thought they had insurance is beyond me as well.
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Apr 5, 2013
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keenland
had this happen with my brokerage about 20 years ago...funny thing, I rear ended someone at the time..damage was about 5k..when I called the broker..she said everything would be taken care of..and it was, to the point I didn't even have a record of the acc on my record. I think they paid out of pocket.

A few other guys I know that had claims later that year and next, found out after everything unfolded , non of us had actual insurance..broker kept all the payments and had a real bad slot machine addiction. There were a few hearings and crap but in the end , everyone was made whole by the brokerage. Easy scam, all that is needed is insurance slips and certificates of insurance where needed.....oh and big balls too
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Aug 22, 2011
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Go direct if possible.
I've had auto and home insurance for over 20yrs and have never used a broker. IMO, they are useless.
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Apr 5, 2013
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keenland
vkizzle wrote: Go direct if possible.
I've had auto and home insurance for over 20yrs and have never used a broker. IMO, they are useless.
agreed for personal insurance...
unfortunately, as in my case. Commercial insurance needs a broker
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Kingsmen17 wrote: Isn't TD a broker as well?
I don't think so. A broker can sell insurance from many companies. TD doesn't, they do business mostly with 2 (or 3? ) insurance companies... one for life insurance, and another for everything else.

TD is more like a middle man between the consumer and Security National Insurance Company.

Someone please correct me if I am wrong.
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motomondo wrote: I don't think so. A broker can sell insurance from many companies. TD doesn't, they do business mostly with 2 (or 3? ) insurance companies... one for life insurance, and another for everything else.

TD is more like a middle man between the consumer and Security National Insurance Company.

Someone please correct me if I am wrong.
"All TD Insurance group creditor insurance products, other than Business Credit Life Insurance, are underwritten by The Canada Life Assurance Company and TD Life, and are administered by TD Life and offered by the Toronto Dominion Bank."
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motomondo wrote: I don't think so. A broker can sell insurance from many companies. TD doesn't, they do business mostly with 2 (or 3? ) insurance companies... one for life insurance, and another for everything else.

TD is more like a middle man between the consumer and Security National Insurance Company.

Someone please correct me if I am wrong.
Security National Insurance Company is owned by TD
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Mar 1, 2008
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vkizzle wrote: Go direct if possible.
I've had auto and home insurance for over 20yrs and have never used a broker. IMO, they are useless.
There are some coverage only available through a broker that you cannot obtain via direct.
Kingsmen17 wrote: Isn't TD a broker as well?
TD Meloche Monnex is a brokerage owned by TD. You need RIBO to work for them. Regular TD Insurance is direct and you need OTL to work for them.
Spending too much money thanks to RFD
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geokilla wrote: There are some coverage only available through a broker that you cannot obtain via direct.
Thankfully for the average Joe like me for home and auto, I'm able to avoid these jokers completely.
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vkizzle wrote: Thankfully for the average Joe like me for home and auto, I'm able to avoid these jokers completely.
For the most part, yeah you probably don't need a broker. There's good brokers out there but also a lot of crappy ones which ruin the name.

One thing I noticed is a lot of people buying umbrella liability, which may not be offered on the direct side. Makes sense since a lot of underwriting and review of the clients is required. A lot of insureds aren't aware of limitations of coverage either. Always review the policy if you're unsure. Just because you have property insurance doesn't mean everything is covered.
Spending too much money thanks to RFD
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geokilla wrote: For the most part, yeah you probably don't need a broker. There's good brokers out there but also a lot of crappy ones which ruin the name.

One thing I noticed is a lot of people buying umbrella liability, which may not be offered on the direct side. Makes sense since a lot of underwriting and review of the clients is required. A lot of insureds aren't aware of limitations of coverage either. Always review the policy if you're unsure. Just because you have property insurance doesn't mean everything is covered.
I'm with Co-operators now and they offer 5 million umbrella liability coverage.
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Why didn't insurance company send notices payment was due?...I know when I was late by two weeks because I was vacation I got text and e-mail from their accounts receivable department that I was overdue.
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gizmo8 wrote: Why didn't insurance company send notices payment was due?...I know when I was late by two weeks because I was vacation I got text and e-mail from their accounts receivable department that I was overdue.
The broker never sent in the renewal application to the insurance company.

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