Are there laws regarding insurance cancellation penalties?
I’m afraid there is no solution that is going to please you. Intact does NOT have to insure you if your claims history makes you ineligible to be insured with them in Ontario. They have underwriting rules that are filed provincially, which are approved by the Financial Services Commission of Ontario. The same applies in Alberta (Finance & Services Alberta). While you are always free to file a complaint in Alberta (don’t file it in Ontario as it will be dismissed as this is an Alberta issue), you won’t be too pleased with the outcome. If you are the one who is canceling the policy then the cost of the time on risk is calculated on what’s called a short rate basis, which means they calculate the pro-rata calculation and then add a percentage as a penalty as you are terminating the policy early. Regardless of whether Intact “is giving you no choice” you are the one who is canceling the policy. The only other options is to have the insurer cancel the policy (assuming the policy wasn’t paid
