Elite Insurance company ordered to cease accepting proposals for MaxQuad Insurance product
Insurance
Montréal – The Agence nationale d’encadrement du secteur financier (also known as the “Autorité des marchés financiers” or the “AMF”) today ordered Elite Insurance Company (“Elite”) to take all necessary measures to ensure that the Fédération québécoise des clubs Quads (the “Federation”), its affiliated clubs and their representatives cease distributing the MaxQuad insurance product as expeditiously as possible and ordered Elite to cease accepting, no later than August 1, 2004, proposals for the product.
The order, which was issued pursuant to the Act respecting insurance, is final and follows the provisional order issued on June 16, 2004 that was valid until June 30, 2004.
The MaxQuad insurance product is marketed by Elite to drivers of off-highway 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 or otherwise.
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’assurancedépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspector General of Financial Institutions.
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