A client is reviewing their automobile insurance renewal, which occurs on September 1, 2026. They are retired and have no dependent children…

The broker's primary duty is to act in the client's best interest by providing competent advice based on a needs analysis. The 2016 SABS reforms made Caregiver and Housekeeping benefits optional. For a retired person with no dependents, these benefits might seem unnecessary. However, a broker must not make assumptions. The correct approach is to assess the client's unique situation (e.g., do they care for a disabled spouse or have other support systems?). It is also crucial to explain that eligibility for purchasing these optional benefits was broadened to cover all levels of impairment, not just catastrophic ones, which could make them valuable even in less severe accidents.

A. Advising removal without a needs assessment is negligent and fails to consider the client's unique circumstances or potential future needs.

B. This is factually incorrect; the reforms made the benefits optional and broadened the eligibility criteria for purchasing them.

D. Insurers cannot automatically remove coverage benefits at renewal without the insured's direction or consent.

1. Financial Services Regulatory Authority of Ontario (FSRA). (2016). Auto Insurance Reforms in Ontario. Summary of Changes effective June 1, 2016.

2. Insurance Institute of Canada. (2022). C131: Essential Skills for the Insurance Broker and Agent - Automobile Insurance. Chapter 4, The Ontario Automobile Policy (OAP 1), Section: Statutory Accident Benefits Schedule (SABS).

3. Registered Insurance Brokers of Ontario (RIBO). RIBO Code of Conduct, Section 3(1) - Quality of Service.