FAQ

Unless they are covered by another authorized plan, all property and casualty (P&C) insurers licensed in a province or territory of Canada to write the classes of insurance covered by PACICC are required to be Members of PACICC. The exceptions include insurers licensed to sell only one or more of the following:

• Automobile insurance in Manitoba, Saskatchewan or British Columbia; and
• Specialty lines of insurance such as surety, fidelity, marine, or aviation.

For a complete list of the kinds of insurance policies that are covered and not covered by PACICC, please see Schedule ‘A’ of PACICC’s Memorandum of Operation, which can be found on the Corporation’s website at www.pacicc.ca

All participating P&C companies pay a small levy to PACICC to cover its operating costs. Should an insolvency occur, PACICC responds to eligible claims and participating insurance companies are assessed for their share of the costs involved.

PACICC coverage applies to the following lines of coverage: Commercial (Property); Commercial (Liability, unless specifically excluded); Home Warranty; Directors and Officers Liability (only for not-for-profit organizations); Professional Liability (Professional Medical only); Errors and Omission (for non-professionals); Accident and Sickness (if sold by a PACICC Member); Legal Expenses; Equipment Warranty; Product Warranty; Boiler and Machinery; and Cyber Liability.

PACICC protection is based on the wording and deductibles of policies purchased from its Member Insurers. Policy deductibles are applied to the total amount of the insured loss, as prescribed in the policy. PACICC will pay the valid claims of policyholders up to established policy limits—$500,000 for Personal Property and $400,000 for other lines of insurance covered by PACICC. These limits are per-policy—so if your policy contains multiple types of the insurance coverage, the single limit applies.

PACICC will refund 70 percent of the unearned (unexpired) portion of premiums paid in advance (to a maximum of $2,500). The maximum refund is therefore $1,750 per policy.

Member companies of PACICC may terminate their membership only if they cease to be licensed in Canada to underwrite policies in the lines of insurance which are covered by PACICC.