The Facility Association

• A. Is an unincorporated, non profit association of insurers
• B. Ensures that automobile insurance is available to every licensed driver
• C. Operates through servicing carriers
• D. All of the above

Answer: (D)

Facility Association functions as Canada’s residual auto insurance market. It is an unincorporated, non-profit association formed by participating insurers to ensure that every licensed driver can obtain automobile coverage, even if standard market insurers won’t issue a policy. To administer this system, it uses servicing carriers—firms contracted to issue and service policies on its behalf, handling underwriting, billing, endorsements, and claims processing under the Association’s framework. By pooling risk among many insurers and relying on servicing carriers to run the day-to-day operations, it keeps coverage available for high-risk drivers while sharing exposure across the member companies.