Under the Act respecting the distribution of financial products and services (the Act), certain insurance products can be offered by distributors rather than by certified representatives.
What is a distributor?
Under section 408 of the act, a distributor is a person who, in pursuing activities in a field other than insurance, offers, as an accessory, for an insurer:
- an insurance product which relates solely to goods sold by the person; or
- secures a client's adhesion in respect of such an insurance product.
What is an insurance product that relates solely to goods?
The Act lists the insurance products relating to goods that can be offered by a distributor who does not hold a certificate issued by the AMF. For example, the products can be:
Offering of insurance products by vehicle dealers
- debtor life, health and employment insurance;
- investor life insurance;
- travel insurance.
Before offering a product through distribution without a representative, the insurer must prepare a distribution guide and provide the distributor with a copy of the guide. The distributor will then provide it to clients who are interested in the product concerned.
The distribution guide describes the product offered, states the nature of the coverage and all exclusions, and specifies the claim filing procedure, including the time limit for filing a claim.
Under the Act respecting the distribution of financial products and services (the Act), insurers and distributors have obligations and responsibilities regarding the preparation and the distribution of a guide intended for consumers.
In fact, the Act states that "an insurer may not offer a product through a distributor without first preparing a distribution guide and providing the distributor with a copy of the guide."
Furthermore, the Act stipulates that a distribution guide must be drafted in accordance with the rules set out in the Regulation respecting distribution without a representative (the “Regulation”). The insurer must file a compliance return with the AMF, which will ensure that the guide contains the information prescribed in the Act and in Schedule 4 of the Regulation and that it is consistent with the insurance policy clauses.
Fees are prescribed under the Regulation respecting distribution without a representative This link will open in a new window in order to ensure the financing of activities related to the examination of distribution guides.
Distribution guide drafting manual
Who is this manual intended for?
This Distribution guide drafting manual (pdf - 499 KB)This link will open in a new window is intended for anyone responsible for drafting the distribution guides that are given to consumers in connection with the offering of insurance products by distributors.
What are the manual's objectives?
This Manual aims to:
- Help insurers prepare a distribution guide on the basis of their obligations under the Act respecting the distribution of financial products and services and the Regulation respecting distribution without a representative;
- Provide insurers with the information required to draft a distribution guide in clear and plain language so consumers can easily understand it;
- Provide insurers with a self-correction grid for their distribution guides.
Fees for the examination of a distribution guide
For additional information on the amendments to the Regulation respecting distribution without a representative, please contact the Information Centre by e-mail at: Request for information This link will open in a new window.
The Regulation to amend the Regulation respecting distribution without a representative came into force on May 1, 2002. It helps ensure the financing of activities related to the examination of distribution guides.
This basic cost includes 10 hours of examination. For periods exceeding 10 hours, an hourly rate will be charged.
Requests to extend time periods
Under section 416 of the Act respecting the distribution of financial products and services (the Act), the AMF may, as often as it considers it necessary, order an insurer to amend a distribution guide in the manner and within the time it specifies.
Fees are payable each time the AMF agrees to extend the time period granted under section 416 of the Act.
- Compliance Return (pdf - 1 MB)This link will open in a new window
- Declaration of Distribution Guide Amendment or Withdrawal (pdf - 1 MB)This link will open in a new window