The Government of Newfoundland and Labrador has released a consumer protection document regarding the sale of insurance. Known as The Principles for the Sale of Insurance, this document details the consumer's rights which must be provided to the purchaser of any insurance policy. A copy of this document must be provided to the purchaser of any policy and with any renewal or cancellation notice. The government has asked that the insurance industry comply with this request by July 1, 2007.

For those residents of Newfoundland and Labrador who are considering purchasing insurance, or those who already have existing policies, we have listed the main points of this document. It is important for all residents to closely read and understand this document, as it outlines your consumer rights and obligations.

• The consumer's interest takes priority over the interests of the insurance company and/or their agents, brokers and representatives.
• The consumer's right to privacy shall be protected as outlined in the Personal Information Protection and Electronic Documents Act. The consumer's personal information shall only be used for the purpose in which it was collected. Written consent must be obtained for use of your information in any other regards.
• Coverage cannot be canceled, be refused renewal of policy, or be charged an increase in premium for an incident in which no claim was paid.
• The consumer has the right to the knowledge of which insurance companies the agent, broker and/or representative represents. The consumer must also be made aware of any present or potential conflict of interest the agent, broker, and/or representative may have.
• The consumer has the right to know the ownership and financing arrangements between agents, brokers, and/or representatives and the insurance companies that they represent. This includes disclosure of any and all compensation arrangements for the product which is purchased, as well as the amount of commission paid out.
• If insurance coverage has been denied, the consumer has the right to be informed in writing of the reason(s) why. This also applies to policies that are cancelled or not renewed.
• The consumer is entitled to be made aware of the complaint resolution process of the insurance company.
• Upon purchase or renewal of any insurance policy, the customer must be provided with the following:

I. The full range of deductibles available, and the cost of coverage with each of the deductibles.
II. All of the different types of coverage available, the costs of each different policy, and any discount that may be available.
III. The total amount of the premium for all quotes obtained for the policy being sold. Upon request, a detailed breakdown by coverage of the premiums quoted must be provided. The consumer is also entitled to all of this information in writing if they so request.

If you are not a citizen of Newfoundland and Labrador, but are interested in finding out your province’s own statutes on insurance, Life-Quotes.ca has information listed for each province. You can also contact us directly with your questions.