Loan insurance: know your rights
Insurance on a loan or credit is an optional product. Federally regulated financial institutions that offer loan insurance must obtain your express consent before providing this product to you.
Banks that offer this product must enter into a separate agreement with you before providing it to you.
These requirements apply to loans and credit products including mortgages, car loans, credit cards and lines of credit.
Your right to information about loan insurance
Federally regulated financial institutions must provide you with:
- a description of the product, including when it starts and how to use it
- the term of the agreement
- information about the charges that will be imposed for the use of the product
- the conditions under which you may cancel the product
Additional information about loan insurance
Banks, members of the Canadian Bankers Association (CBA), have agreed to follow a code of conduct for authorized insurance activities. They commit to provide clear and understandable disclosure. This applies to documents related to authorized insurance products, which includes loan insurance.
Banks will make this code available:
- at each of their branches in Canada where they offer products or services and at each of their points of service
- on each of their websites through which they offer products or services in Canada
- in writing, upon request
When these rights apply to you
These rights apply when you’re dealing with a federally regulated financial institution like a bank or federal credit union.
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