What is the primary purpose of the Insurance Act in Ontario?

The primary purpose of the Insurance Act in Ontario is to regulate insurance companies and protect policyholders. This legislation establishes a framework that governs the insurance industry, ensuring that insurers operate fairly, maintain adequate capital, and meet specific standards for solvency and conduct. By doing so, it safeguards the interests of consumers by promoting stability and trust in the insurance market.

One of the key objectives of the Insurance Act is to ensure that policyholders are treated fairly, with provisions in place to address matters such as claims handling, policy terms, and disclosures. This regulation helps to foster a supportive environment where consumers know their rights and the responsibilities of the insurers they do business with.

Other options, while important in their own rights, do not directly relate to the core functions of the Insurance Act. For example, protecting the environment and promoting financial literacy are significant areas of public policy but do not fall under the specific provisions of the Insurance Act. Similarly, the licensing of financial advisors pertains to a different regulatory framework focused on personal investment services, rather than insurance specifically. Therefore, the most accurate representation of the purpose of the Insurance Act is its role in regulating the insurance industry to protect policyholders.