An agreement has been reached between the Autorité des marchés financiers ("AMF") and AIG Insurance Company of Canada ("AIG") whereby an administrative sanction in the amount of $200,000 has been paid by AIG for failures related to the distribution of insurance products.
The AMF claimed that AIG sold damage insurance policies applicable to equipment purchased from dealers through individuals who were not registered with the AMF for such purpose, namely, dealer employees. The insurance policies in question were not intended for distribution without a representative.
In total, 1,598 damage insurance policies were sold in this manner in Québec between 2011 and 2015. AIG collected premiums totalling $2,348,593 in connection with these sales.
AIG has discontinued its distribution of the damage insurance policies covered by this agreement and implemented the measures needed to ensure that the distribution of all its insurance products takes place in accordance with the law.