Minister Noel asks Cooperators Insurance to stop "highly inappropriate" action

Walter Noel, Minister of Government Services and Lands, says his department has received complaints from drivers insured with Cooperators who say the company will not renew their auto insurance policies unless they also have a home or life insurance policy with the company.

Cooperators says it is taking this action due to heavy losses on single-line auto insurance policies in the St. John�s area, and that about 1,300 clients are affected.

Clients refused renewal are apparently offered an auto insurance policy with a high-risk insurance company at a much higher premium. In some cases, drivers without accidents are being placed with this high risk insurer.

While this practice does not appear to violate any current law, Minister Noel said: "I have asked the company to stop this practice. It appears to be coercive-tied selling and I find it highly inappropriate.

"We are currently finalizing proposals for automobile insurance reform and are considering prohibiting this practice, as other provinces have done."

The Department of Government Services and Lands advises consumers to shop around to obtain the best possible insurance policy for their circumstances.

Media contact: Rick Callahan, Communications, (709) 729-4860.

2002 08 30                               11:00 a.m.