July 30, 2010 Insurance

Montréal – The Autorité des marchés financiers (AMF) announced today that it is extending the transition period for the sale of replacement guarantees to September 30, 2010. As a result, the date set for full and final implementation of the new rules governing replacement insurance and use of the AMF-approved form is now October 1, 2010.

In a Notice published in its Friday, July 30, 2010 Bulletin (in French only), the AMF indicated that replacement guarantees will no longer be sold as of October 1, 2010 (previously, the deadline was August 1, 2010). This product will be replaced by motor vehicle replacement insurance, which will be issued by duly authorized insurers. Therefore, as of October 1, automobile insurance policy Q.P.F. No. 5 and endorsement Q.E.F. No. 5-25 – Modified Declarations Endorsement must be used.

This exceptional measure is intended to ensure the effective implementation of the new regime and to protect consumers.

The AMF also published a notice regarding replacement insurance in its Bulletin of July 23, 2010 (in French only). This Notice provided guidance on the interpretation of Q.P.F. policy No. 5 and clarified the nature and extent of coverage available, contract modification and the distribution of this product.

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

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