PROLINK-Canada’s Insurance Connection has worked closely with AMBA to develop a comprehensive suite of insurance solutions designed to address the unique challenges faced by Mortgage Brokers. Our product offering includes:

Professional Liability Coverage:

The Alberta Mortgage Brokers Association (AMBA) and PROLINK have partnered to offer a customized Professional Liability insurance program meeting the specific requirements of mortgage brokerages licensed in Alberta and operating across Canada.

Professional Protection:

  • RECA approved E&O Liability insurance underwritten by Liberty International Underwriters.
  • Flexible amounts of coverage ranging from $500,000 per loss up to $2,000,000 per loss.
  • All associates and employees automatically covered under the policy.
  • Covers mortgages arranged with private and institutional lenders.
  • Fraud coverage is automatically included for all licensed brokers and associates.
  • Flexible deductible options for even greater savings.
  • Covers your defense costs (legal, adjustors, etc.) and the damages awarded to claimants.
  • Deductible does NOT apply if damages are NOT paid to the third party claiming against you.
  • Full prior acts coverage for the brokerage. The policy will cover services rendered by all associates since the inception of the brokerage.
  • Libel and slander claims from lenders and borrowers are NOT excluded.

Financial Institution Bonds

Why Consider a Financial Institution Bond?

The Alberta Securities Commission (“ASC”) requires that organizations administering Mortgage Investment Corporations (“MICs”) and Mortgage Syndications purchase a Financial Institution Bond compliant with the registration requirements set out under National Instruments 31-103. All firms who are active as Investment Fund Managers, Restricted Portfolio Managers or Exempt Market Dealers must apply for registration with the ASC and buy an approved Bond.

Why is the AMBA Program Valuable?

AMBA and PROLINK developed a Financial Institution Bond program specifically for members required to be registered with the ASC under the National Instruments 31-103. PROLINK is the AMBA Insurance Program Manager for Errors & Omissions Liability and Commercial Insurance solutions. PROLINK has experience in providing Financial Institution Bonds to companies registered with NI 31-103. Members receive a 10% discount of standard rates. The AMBA program insurer, Trisura Guarantee Company, already offers one of the lowest premiums in the country. The additional 10% discount will ensure that members get the best possible value.

What is a Financial Institution Bond?

The Bond really represents a Crime insurance policy protecting you and your clients. Crime/Fidelity insurance offers companies protection against losses they may incur as a result of fraudulent acts by individuals (employees or outside parties). The AMBA Bond provides coverage for circumstances involving computer systems fraud as well. The reality is that even the best internal controls and compliance procedures cannot fully protect you against the criminal element. A Financial Institution Bond can help you mitigate this risk.

Mortgage Impairment Insurance:

Mortgage Impairment Insurance is an All Risk Comprehensive Property insurance policy protecting the private lender’s mortgage interest against physical loss or property damage. Until now, this type of protection was only affordable for the largest banks and trust companies lending in Canada.

The Mortgage Impairment insurance policy is available exclusively to AMBA members. Mortgage administrators, individual private lenders, Mortgage Investment Corporations and mortgage brokers arranging private mortgages can all purchase this policy.

Mortgage Impairment – Protecting the Mortgagee’s Interest

The Mortgage Impairment policy should be considered mandatory coverage for private lenders/mortgagees. The policy protects insured mortgagees against losses on properties in their portfolio that were believed to have valid primary insurance at the time of the loss but after the loss were found to have:

  1. NO valid insurance in force; or
  2. The amount or type of valid insurance in force was insufficient to cover the mortgagee’s interest.

The policy covers all commercial and residential properties funded by a particular mortgagee (i.e., private investor) within the mortgage portfolio managed or administered by the lender or administrator listed on the policy.

Mortgage Impairment Coverage Limits

Mortgage Lenders and Administrators can select one of the following options for Mortgage Impairment Losses under the program:

  1. Total policy limits from $500,000 to $4,000,000 for residential and commercial losses;
  2. Typical limits selected are $500,000, $1,000,000, $2,000,000, $3,000,000 or $4,000,000.