Assumption Mutual Life Insurance Company - Superior Court sets aside AMF order. AMF to appeal decision
Decisions and Freeze and cease trade orders Insurance
Montréal – On August 3, 2005, the Superior Court set aside an order issued by the Autorité des marchés financiers (AMF) against Assumption Mutual Life Insurance Company (“Assumption”). The Court ruled that the AMF should have instead launched a penal proceeding.
On December 2, 2004, the AMF issued an order against Assumption to cease, no later than March 1, 2005, accepting insurance proposals for personal automobile credit insurance products distributed through automobile dealers not registered with the AMF or not authorized to act as distributors under An Act respecting the distribution of financial products and services.
Moreover, on December 22, 2004, Assumption filed a motion in Superior Court to institute proceedings whereby it asked the court, in particular, to declare that Assumption was not violating An Act respecting insurance and to rule that the order issued by the AMF was null. A staying order was issued on February 15, 2005.
In its decision, the Superior Court did not rule on the legality of the process set up by Assumption. As well, it dismissed all of Assumption’s allegations that the AMF did not act fairly and in good faith in its regard.
The AMF maintains that the process set up by Assumption is illegal. In addition, the AMF plans to refer to the Court of Appeal the declaration of nullity in respect of the order that was issued in the Assumption case.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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