An agreement has been reached between the Autorité des marchés financiers (the "AMF"), Co-operators Life Insurance Company (Co-operators), AZGA Services Canada Inc. (AZGA), the successor of TIC Travel Insurance Coordinators (TIC) following a merger, and The Destination: Travel Group Inc. (DTG). Under the agreement, a total of $175,000 in administrative penalties have been paid for breaches relating to the distribution of an insurance product.
The AMF claimed that Co-operators sold 1,285 "Destination: Travel Health Plans" (THP Products) insurance policies through two travel agencies that were not registered for such purposes over a period of four years and eight months. The policies could not legally be distributed without a representative. Co-operators has paid the AMF a $50,000 fine.
As for TIC, of which AZGA assumed the rights and obligations following a merger on January 1, 2015, it purportedly acted through DTG, a company that was not registered with the AMF as a firm at the time of the alleged wrongdoing, and paid it commissions in connection with the distribution of THP Products. AZGA has paid the AMF a $50,000 fine.
Lastly, the AMF claimed that DTG was acting as a firm without being registered for such purpose at the time of the alleged wrongdoing, acted through travel agencies not authorized to distribute THP Products and illegally received commissions related to the sale of such insurance products. DTG has paid the AMF a $75,000 fine.
Co-operators, AZGA (formerly TIC) and DTG no longer distribute the above-mentioned insurance products and have set up measures to ensure that all their products are distributed in accordance with An Act respecting the distribution of financial products and services.