Court of Appeal confirms validity of AMF order against Assumption Mutual Life Insurance Company

Decisions and Freeze and cease trade orders Insurance

Montréal - In a ruling handed down on June 27, 2007, the Court of Appeal confirmed the validity of the decision issued by the Autorité des marchés financiers (“AMF”) on December 2, 2004 ordering Assumption Mutual Life Insurance Company (“Assumption”) to cease accepting insurance proposals for personal automobile credit insurance products distributed through dealers that are not registered with the AMF or not authorized to act as distributors under the Act respecting the distribution of financial products and services.

The Court ruled that the AMF, in light of its mandate to protect the interests of the public, used its discretionary power under the Act respecting insurance for relevant purposes and on reasonable grounds.

The AMF notified Assumption of its obligation to comply with the order no later than July 20, 2007 and therefore cease accepting insurance proposals submitted by persons unauthorized to do so. The time period will enable Assumption to take the steps necessary to abide by the Act and accordingly notify dealers that distribute automobile credit insurance products.

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

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