Decisions and Freeze and cease trade orders Insurance
Montréal, April 12, 2018 – An agreement has been reached between the Autorité des marchés financiers (the “AMF” or the “Authority”) and the Manufacturers Life Insurance Company (“Manufacturers”) under which an administrative penalty of $350,000 was paid for non-compliance related to the distribution of a hospitalization insurance product called Régime hospitalisation Sears. This product was being sold to Sears credit card holders.
Manufacturers acknowledged that it did not follow sound commercial practices in connection with the distribution of the insurance product and failed to comply with various provisions of the Act respecting insurance, CQLR, c. A-32, and the Act respecting the distribution of financial products and services, CQLR, c. D-9.2. In particular, it offered the product through employees of a telemarketing firm, namely, individuals who were not certified by the AMF for such purpose, and it allowed certified persons active in the distribution of this product to not fully perform their roles.
The product was offered in Québec for approximately three years, with 4,970 certificates being issued from 2012 to 2014. Manufacturers collected premiums in the amount of $512,047.37 during that period.
Manufacturers had already ceased to distribute this product as of December 31, 2015, and confirmed that it had implemented the necessary measures to ensure that all its products were distributed in accordance with the law.
Moreover, Manufacturers has undertaken to notify all persons who are still insured with this product that a certified representative is available to answer their questions.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
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Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
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