True, but it doesn't make Dgm yyc wrong.
Only a government organization could charge for insurance that doesn't apply.  CMHC does this by charging the full amount for the life of the mortgage (usually 25 years).  Should the owner sell or pay-off the mortgage early they are not entitled to a refund for the remaining term of the mortgage, i.e. they are stuck paying premiums for insurance they don't have.