FSRA says underwriting rules are the reasons an insurer can decline to issue, refuse to renew, or terminate an Ontario auto policy. It also says those rules must be filed and approved. If a company refuses to sell or renew your policy, FSRA says it must tell you in writing which rule or rules it used. That written reason is the starting point for the next move, because it tells you whether the problem is a record issue, a payment issue, a disclosure issue, or a factual error that needs to be corrected.
What FSRA lists as common underwriting-rule issues
FSRA says common underwriting rules include whether you or drivers in your household have had more than a certain number of driving convictions or at-fault accidents, whether you have had a policy cancelled for non-payment, and whether you have failed in the past to provide correct or complete information when applying for auto insurance.
Those examples matter because they show what the insurer is usually reacting to: not just the latest event, but the whole file. A refusal to renew may be about the last accident, or it may be about the last accident plus an older lapse, plus a household-driver issue, plus incomplete information on the application.
What insurers are not allowed to use as prohibited grounds
FSRA says underwriting rules that do not comply with the Insurance Act or regulations are prohibited. It specifically lists rules based on credit history, physical or mental disability, where you live or the location of the vehicle, and whether you are newly licensed or a driver new to Canada as prohibited examples.
Practical point: if the written reason you receive does not seem to match the actual facts, or sounds like a prohibited factor dressed up as something else, the next step is to challenge the factual basis cleanly and in writing.
Declined, non-renewed, and terminated are related - but not identical
A new-business decline means the insurer did not want to issue the policy. A non-renewal means it does not want to continue at renewal. A termination means an existing policy is being ended. FSRA says that if an automobile policy has been in effect for more than 60 days, the insurer may terminate it only for limited reasons, including non-payment, false information about the automobile, knowingly misrepresenting or failing to disclose information on the application, or not informing the insurer of a material change of risk.
That distinction matters because the response can differ. A payment-based termination file is not analyzed the same way as a new-business decline driven by too many convictions.
What to do immediately after the notice arrives
- Get the stated underwriting rule or reason in writing if it is a decline or non-renewal.
- Check every factual detail against the actual file: drivers, claims, convictions, cancellations, address, and vehicle use.
- Do not submit a new application elsewhere with inconsistent answers just to get something moving faster.
- Start the next broker conversation early, not on the day coverage ends.
If there is a factual error, the cleanest fix is usually documentation, not argument.
How complaint escalation works
FSRA says that if you believe an insurer has violated the law, you should first file a complaint with the insurer and obtain a final position letter. It then says that if the insurer has not referred you to the General Insurance Ombudservice and you believe the insurer or agent may have breached the Insurance Act, you can send a complaint to FSRA with supporting documentation.
FSRA also says it cannot force a company to change a business decision or provide refunds. That means complaint escalation is about potential legal or regulatory breaches, not simply disliking the underwriting outcome.
What your broker will need to re-shop the file properly
- The written decline, non-renewal, or termination reason.
- The full driver list for the household.
- Dates of all recent claims, convictions, suspensions, cancellations, and lapses.
- The current vehicle details, garaging address, and use.
- Any documents that correct a factual error in the insurer's understanding.
The more organized that package is, the faster the file can move to the next realistic market.
Common questions
Does a decline mean nobody in Ontario can insure me?
No. It means that insurer, using its approved underwriting rules, does not want the file. The next step is to understand why and then see what other market still fits.
If the insurer gives me a reason in writing, is that the end of it?
No. The written reason is the start of the next step. It tells you what must be corrected, documented, or re-placed elsewhere.
Can I complain to FSRA immediately?
FSRA says you should first complain to the insurer and obtain a final position letter before sending a complaint to FSRA if you believe the law may have been breached.