Montréal – The Autorité des marchés financiers (AMF) today published a draft Regulation respecting damage insurance brokerage (pdf - 31 KB)This link will open in a new windowUpdated on 25 July 2019Damage insurance brokerage and a related notice (pdf - 86 KB)This link will open in a new windowUpdated on 25 July 2019Damage insurance brokerage and request for comment.
“The proposed regulation was made with a view to promoting transparency for consumers who deal with damage insurance representatives so they could make informed decisions,” said Louis Morisset, AMF President and CEO. “It also takes into account the various business models of damage insurance firms, comments obtained in preparing the draft regulation and comments made during the parliamentary proceedings on Bill 150 held during the previous legislature.”
An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions, assented to on June 13, 2018, made a number of changes to the Act respecting the distribution of financial products and services (Distribution Act), particularly in the area of damage insurance, including:
- new obligations for damage insurance brokers
- new titles for damage insurance brokerage firms and agencies
- criteria to be met to qualify as a damage insurance brokerage firm
Among the amendments, damage insurance brokers who offer insurance products directly to the public will, each time they offer a client who is a natural person an insurance product belonging to a class determined by regulation of the Authority, have to be able to obtain quotes from at least three insurers who do not belong to the same financial group, failing which they will have to keep the information allowing them to prove that they made every effort to comply with this requirement.
These amendments will come into force on December 13, 2019.
Comment period and public information session
Anyone interested in commenting on the draft Regulation respecting damage insurance brokerage has until September 23, 2019 to do so.
The AMF will also hold a public information session to explain the key orientations of the draft Regulation and to open a discussion with interested stakeholders. The AMF plans to hold the information session in early September. The exact date and all the details will be available in the near future on the AMF website. In the meantime, questions may be sent to [email protected].
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial industry.
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