June 18, 2004 Insurance Decisions and Freeze and cease trade orders

Montréal – On June 16, 2004, the Agence nationale d’encadrement du secteur financier (also known as the “Autorité des marchés financiers” or the “AMF”) ordered Elite Insurance Company (“Elite”) to cease accepting, no later than June 30, 2004, proposals from the Fédération québécoise des clubs Quads (the “Federation”), its affiliated clubs and their representatives for the MaxQuad insurance product.

Under the order, which was issued pursuant to section 325.1 of the Act respecting insurance, Elite is required to carry on business only with persons authorized under the Act respecting the distribution of financial products and services for the distribution of the MaxQuad insurance product.

The MaxQuad insurance product is marketed by Elite to drivers of all terrain vehicles who are required to carry civil liability insurance under the Act respecting off-highway vehicles. Groupe 3PCS inc., a damage insurance firm registered with the AMF, administers the MaxQuad program that is distributed by the Federation, its affiliated clubs and their representatives.

The AMF maintains that the Federation, its affiliated clubs and their representatives are not authorized under the Act respecting the distribution of financial products and services to distribute the MaxQuad insurance product since they are not registered as an insurance representative with the AMF, nor are they otherwise authorized.

The order issued by the AMF is provisional. Elite may present observations to the AMF, which will determine whether a final order should be issued or whether this provisional order should be revoked.

Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l’assurance-dépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspector General of Financial Institutions.

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Information:

Journalists only:
Philippe Roy (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, dial 9 for English, then dial 1 for industry
Investors: (877) 525-0337, dial 9 for English,then dial 2 for consumers