The Facility Association is described as which of the following?

The Facility Association is described as which of the following?

• A. Is an unincorporated, non profit association of insurers
• B. Is a government regulator of auto insurance
• C. Operates outside Canada
• D. Sets rates for automobile insurance across all provinces

Answer: (A)

Facility Association is the unincorporated, non-profit association of auto insurers that serves as a safety-net pool for drivers who can’t obtain coverage in the voluntary market. It’s formed by member insurers to ensure there is auto insurance available for high‑risk motorists, and it operates within Canada. It is not a government regulator, it doesn’t operate abroad, and it doesn’t set auto insurance rates across all provinces—the rates are set by regulators and rating bureaus, with the association simply providing the residual market mechanism for those who can’t get standard coverage.

Facility Association is the unincorporated, non-profit association of auto insurers that serves as a safety-net pool for drivers who can’t obtain coverage in the voluntary market. It’s formed by member insurers to ensure there is auto insurance available for high‑risk motorists, and it operates within Canada. It is not a government regulator, it doesn’t operate abroad, and it doesn’t set auto insurance rates across all provinces—the rates are set by regulators and rating bureaus, with the association simply providing the residual market mechanism for those who can’t get standard coverage.