What is the role of the Federal Department of Insurance regarding claims processing?

The Federal Department of Insurance does not involve itself in the direct processing of insurance claims. Its primary role is to regulate the insurance industry as a whole and enforce compliance with insurance laws and regulations. This means that while the department oversees the practices and conduct of insurance companies, it does not dictate how individual claims should be processed by insurers nor is it responsible for approving claims or ensuring specific timelines for payment.

In Canada, insurance is primarily regulated at the provincial level, meaning that the actual handling of claims falls under the jurisdiction of provincial regulatory bodies and the companies themselves. This distinction clarifies the department's limited involvement in the claims process, emphasizing that its focus is more on regulation and oversight rather than direct claim management.