August 30, 2007 Insurance

Montréal – The Regulation to amend the Regulation respecting Information to be Provided to Consumers proposed by the Autorité des marchés financiers (AMF) on October 2, 2006 and published in the Gazette officielle du Québec as a draft regulation on December 20, 2006 has received government approval, as required, and comes into force today.

Damage insurance brokers and agents are now required to verbally disclose to clients the name of the insurer with whom they conduct at least 60% of their business. Other types of business relationships such as ownership interests and loans must also be disclosed. As of the first anniversary date of the amended regulation, such disclosure will have to be made in writing.

The purpose of this disclosure process is to ensure that consumers have as much information as possible on the nature of the relationship between an insurance broker or agent and the company providing the insurance products.

Following the publication of its report on “Commercial Practices in the Québec Damage Insurance Brokerage Sector” on April 14, 2005, the AMF launched a consultation on the matter in June 28, 2005. Further to the consultation, it published its Regulation to amend the Regulation respecting Information to be Provided to Consumers on March 3, 2006 for comment. After analyzing the comments it received, the AMF submitted a draft regulation to the government on October 2, 2006 for approval. The regulation was adopted on August 15, 2007.

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

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