May 5, 2005 Insurance

Montréal – In an agreement between the Autorité des marchés financiers (AMF) and the Chambre de l’assurance de dommages (ChAD), staff members at the ChAD will be authorized to carry out inspections and ChAD will be recognized as an inspector.

Under the agreement, the ChAD will be authorized to carry out inspections of damage insurance and claims adjustment firms consisting of 24 representatives or less, in accordance with the inspection program approved by the AMF, other than insurers, which are governed by solvency standards and continue to be overseen by the AMF.

In this regard, the AMF will provide the ChAD with an annual list of damage insurance and claims adjustment firms consisting of 24 representatives or less and do so at a fixed date. As well, the AMF will provide the ChAD with a monthly list of firms where inspections are required.

“This pilot project will help us boost the number of inspections with respect to damage insurance and claims adjustment,” noted AMF President and CEO Jean St-Gelais. “The agreement reflects our determination to confirm compliance by firms on a regular basis and further ensure that consumers are adequately protected.”

Under section 9 of An Act respecting the Autorité des marchés financiers, the AMF may, in writing, authorize a person other than a staff member to carry out an inspection and report to it.

The AMF will continue to carry out inspections of damage insurance and claims adjustment firms consisting of 25 or more representatives.

The ChAD will provide the AMF with a consolidated quarterly report (May 15, August 15, November 15, February 15) on all inspections carried out and any major shortcomings that have been noted, as well as a report comparing its inspection plans against inspection deliveries and the action plan adopted to correct any variations.

Moreover, the ChAD will be reporting to the AMF details of its activities, including a statistical overview of shortcomings and steps taken with respect to firms, and it will be doing so on an annual basis.

The attached one-year agreement is effective May 1, 2005.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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Information:

Media only:
Philippe Roy (514) 940-2176
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Consumers and investors: (877) 525-0337, dial 9 for English, then dial 2 for consumers