Distribution other than through a representative - Four insurers fined $80,000

Insurance Decisions and Freeze and cease trade orders

Montréal - The Autorité des marchés financiers (the AMF) recently imposed administrative sanctions totalling $80,000 on four insurers who failed to file a distribution guide with the AMF before offering insurance products other than through a representative in Québec.

American Bankers Compagnie d'Assurance Générale de la Floride and American Bankers Compagnie d'Assurance Vie de la Floride were each fined $15,000.

L'Ancienne République Insurance, compagnie d'assurance du Canada and La Reliable, compagnie d'assurance vie were each fined $25,000.

Under certain circumstances set out in An Act respecting the distribution of financial products and services with respect to distribution other than through a representative, an insurer may offer certain insurance products other than through a representative who holds a certificate issued by the AMF. However, before doing so, the insurer must prepare a distribution guide and forward a copy to the AMF. The insurer must also send the guide to the distributor, who will give a copy to consumers interested in the product described in the guide before offering it to them or having them subscribe for the product. This guide helps consumers determine whether the insurance product is appropriate for them, since they do not have the benefit of advice from an insurance representative.

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

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