January 9, 2025 – On or about December 23, 2024, RIBO was notified of ongoing court proceedings that may impact brokers with dealings with TruStar Underwriting Inc., a RIBO licensee. As TruStar is a Managing General Agent that serves as an intermediary between brokerages and insurers, RIBO promptly issued an alert to all our licensees encouraging them to carefully review any business dealings they may have had with Daniel Moses and/or TruStar.
As with all Managing General Agents in Ontario, TruStar’s registration with RIBO is of a voluntary nature. As a RIBO licensee, they are bound to all applicable rules and regulations. We are carefully monitoring the situation.
As always, RIBO’s concern is with insurance consumers who may be negatively impacted. Any affected party is encouraged to contact us through our complaint web form.
Below are the messages we sent to all RIBO licensees on December 23, 2024 and January 8, 2025.
January 8, 2025
TruStar Update
Further to our correspondence on December 23, 2024 relating to the alleged wrongdoings of TruStar Underwriting Inc. (“TruStar”) and Daniel Moses, TruStar is now under receivership by a court-appointed Receiver, Doane Grant Thornton (“DGT”).
Additional background information, court orders and notices from the Receiver are available on DGT’s website. RIBO encourages brokers who have had business dealings with TruStar to read the Notices to Creditors, Clients and other Stakeholders section.
RIBO’s immediate concern is on consumer protection and ensuring that customers have coverage.
RIBO expects brokers to work directly with their clients and applicable insurers to verify that valid and sufficient coverage is in place and, if not or if uncertain, to discuss options with clients including placing alternative coverage.
The Insurance Brokers Association of Ontario (IBAO) has drafted a set of general instructions that brokerages who provided policies written through TruStar may wish to reference. These instructions align with RIBO’s expectations.
We appreciate the additional time and effort required to conduct the necessary analysis. We also know that you, as an insurance professional, understand the necessity and urgency of acting in the best interests of your clients.
It is also essential for RIBO to understand the extent, timeframe and scope of this matter. To that end, RIBO continues to gather relevant information. We have also been in contact with the Financial Services Regulatory Authority of Ontario (FSRA), who are in a similar information-gathering stage.
Although it is a Managing General Agent (MGA), TruStar voluntarily holds a RIBO license and is accordingly subject to the same overall regulatory requirements as any other RIBO licensee. As such, brokers and/or their clients can file a formal complaint through RIBO’s website. Where appropriate, RIBO will take the necessary disciplinary action.
December 23, 2024
ATTN: Ontario Insurance Brokers and Clients of TruStar Underwriting Inc. (“TruStar”) and Daniel Moses (“Moses”)
By Orders of the Honourable Mr. Justice Peter Osborne dated November 14, 2024 and December 10, 2024, a continuing injunction has been granted against Moses concerning a series of alleged schemes wherein TruStar has purportedly bound risks and collected premiums when in fact no such coverage has been bound. This conduct has put brokers and their customers at risk.
A further hearing was set to occur on December 20, 2024. TruStar is licensed with RIBO in Ontario and is licensed in other jurisdictions as an agency.
Brokers and their clients should carefully review any business dealings they have had with Moses and/or TruStar to ensure that any policies underwritten by TruStar are confirmed in writing by the insurer on risk as having been bound and premium remitted.
RIBO licensees and/or members of the public that have been involved in an invalid insurance transaction with Moses and/or TruStar may file a complaint against them using our online complaints form. Further announcements will be made when more information becomes available. Please share with your staff as appropriate.