Application

This section is for the following persons wishing to apply for authorization to carry on insurer activities in Québec under section 30 IA:

  • Insurance companies regulated by Title III IA and any legal person that the law considers to be such a company (s. 6, par. (1) and s. 23, 1st par. IA);
  • Legal persons constituted under a private Act of Québec that authorizes them to carry on insurer activities (s. 6, par. (3) and s. 23, 1st par. IA);
  • Legal persons constituted under the laws of a Canadian jurisdiction other than Québec and having the capacity to carry on insurer activities (s. 23, 1st par. IA);
  • Lloyd’s which, for the purposes of the Act, is considered a legal person constituted under the laws of a jurisdiction other than Québec (s. 25, 1st par. IA).

The provisions relating to an application for authorization are found in sections 30 to 44 of the Insurers Act This link will open in a new window (CQLR, c. A-32.1) (“IA”).

It also applies, with the necessary modifications, to:

  • If they establish an insurance fund, self-regulatory organizations (“SROs”) governed by an Act of Québec, including the professional orders, (s. 6, par. (2) IA);
  • Reciprocal unions, if the mandatary referred to in subparagraph 3 of the first paragraph of section 188 of the Act is domiciled in Québec (s. 6, par. (4) IA);
  • Reciprocal unions constituted under the laws of a Canadian jurisdiction other than Québec and having the capacity to carry on insurer activities (s. 23, 2nd par. IA).

Obligation to be authorized

Under the first paragraph of section 21 IA, authorization is required by any operator that carries on insurer activities if such activities are carried on in Québec and constitute the operation of an enterprise, regardless of any other activities that may be carried on by the operator, unless the operator is covered by an exception.

1. Insurer activities

Insurer activities are defined in section 2 of the Act and consist in undertaking to make a payment under an insurance contract if a risk covered by the insurance occurs. They include acting as surety or, for the purposes of a life or fixed-term annuity contract, as debtor.

Insurance contracts, suretyship contracts and annuity contracts are defined in articles 2389, 2333 and 2367 of the Civil Code.

2. Carrying on insurer activities in Québec

This concept is defined in section 22 of the Act. With regard to non-marine insurance, and therefore in insurance of persons and damage insurance, an insurer carries on its insurer activities in Québec if it underwrites a contract governed by an Act of Québec or if its offer or invitation is made with a view to underwriting such a contract, unless that Act applies only by reason of the parties’ consent (s. 22, 1st par. IA).

With regard to marine insurance contracts or suretyship contracts, the insurer carries on its insurer activities in Québec if its offer or invitation is accepted in Québec by a person resident there, or if it signs or delivers a contract in Québec (s. 22, 2nd par. IA).

3. Insurer activities constitute the operation of an enterprise

The carrying on by one or more persons of an organized economic activity, whether or not it is commercial in nature, consisting of producing, administering or alienating property, or providing a service, constitutes the operation of an enterprise (art. 1525, 3rd par., Civil Code).

Under the second paragraph of section 21 of the Act, the carrying on of insurer activities by each of the persons in a reciprocal union is considered to constitute the operation of an enterprise.

4. Regardless of the other activities carried on by the operator

It must be determined whether or not there is the operation of an enterprise, regardless of any other activities that may be carried on by the operator. Therefore, if the insurer activities are even slightly incidental to another commercial activity, then the moment they constitute the operation of an enterprise, the AMF’s authorization is required.

5. Exceptions

The exceptions to the obligation to be authorized are set out in sections 27 and 28 IA.

Under section 27 IA, authorization is not required for:

  • A professional syndicate which, in order to carry on insurer activities, establishes and administers a special indemnity fund in accordance with subparagraph 1 of the second paragraph of section 9 of the Professional Syndicates Act, CQLR, c. S 40 (s. 27, 1st par. (1) IA);
  • A person who, in terms of insurance, enters only into contracts of additional warranty under which it gives an undertaking to another person to directly or indirectly assume any portion of the cost of repairing or replacing property or any part of the property in case of defect (s. 27, 1st par. (2) IA);
  • An insurer that, in Québec, delivers only damage insurance contracts through a firm acting through a special broker governed by the Act respecting the distribution of financial products and services, CQLR, c. D-9.2, if the insurer has no establishment in Québec and does not publicize its business in Québec (s. 27, 1st par. (3) IA);
  • An employer that establishes an uninsured employee benefit plan for the benefit of its employees (s. 27, 1st par. (4) IA);
  • Each of the persons in a reciprocal union, if the AMF’s authorization has been granted to the union (s. 27, 1st par. (5) IA).

Section 28 IA provides two exceptions where insurer activities may be carried on without the AMF’s authorization. Unlike section 27, however, this section provides that such an authorization may be granted to a legal person that applies for it. The two exceptions cover the following persons:

  • A person constituted under the laws of a jurisdiction other than Québec who carries on only reinsurer activities in Québec (s. 28, 1st par. (1) IA); and
  • A person who, without being a Québec insurer, carries on insurer activities in Québec only as surety or as debtor of an annuity (s. 28, 1st par. (2) IA).

Application for authorization

Eligibility requirements

  1. The applicant must demonstrate that it has at least $5 million in capital (s. 23, 1st par. IA). For an SRO or a reciprocal union, the minimum capital required may be less than $5 million (s. 23, 2nd par. IA). Section 182 IA specifies that an SRO must adhere to sound and prudent management practices to ensure that its insurance fund maintains adequate assets to meet the liabilities charged against the fund, as and when they become due, and adequate capital to guarantee the sustainability of the organization’s insurance business. For a reciprocal union, section 189 IA states that the sums pooled must enable the reciprocal union to meet the liabilities contracted by the persons in the union as part of their insurer activities, as and when they become due.
  2. The applicant must also show that it is able to comply with the applicable provisions of the IA IA (s. 30, 2nd par. IA).

Under the first paragraph of section 30 of the Act, a legal person that intends to carry on insurer activities is responsible for filing an application with the AMF for its authorization, when required.

The standardized application form This link will open in a new window of the Canadian Council of Insurance Regulators (CCIR) must be attached to the application.

Adjustments have been made to the information and documents to be provided for SROs (s. 35 IA) and reciprocal unions (ss. 32 and 36 IA). Refer to the checklists setting out the information and documents required for an application.

The AMF has the authority to grant an exemption when an application is submitted by a non-Québec chartered reinsurer. Section 38 of the Act states that, if an insurer is constituted under the laws of a jurisdiction other than Québec and requests that the authorization it is applying for be restricted to reinsurer activities, the AMF may exempt the insurer from providing the information and documents required under sections 30 and 34 IA that the AMF determines.

Furthermore, the AMF strongly encourages insurers to contact a compensation body recognized by the AMF early on in the process to find out the terms and conditions for becoming a member of such an organization. No authorization may be granted by the AMF if an insurer does not provide an undertaking confirming its membership in such an organization, unless the insurer is covered by an exception (ss. 31 and 32 of the Regulation under the Act respecting insurance, CQLR, c. A-32.1, r.1) (“RARI”). The AMF recognizes two compensation bodies: Assuris This link will open in a new window (in insurance of persons) and the Property and Casualty Insurance Compensation Corporation (PACICC) This link will open in a new window.

Checklists

The following checklists describe the information to be included in, and documents to be enclosed with, the application for authorization by type of applicant:

Contents of the authorization request for all insurers, except SROs and RUs

Information/documents Source Clarification by the AMF
1. Have a minimum capital
 
1.1 The applicant must show that it has at least $5 million in capital (s. 23, 1st par. IA);
 
s. 23, 1st par. IA n/a
2. Have the ability to comply
 
2.1 The applicant must show that it is able to comply with the applicable provisions of the IA (s. 30, 2nd par. IA);
 
s. 30, 2nd par. IA A declaration signed by a person authorized to do so within the legal person regarding compliance with the laws, regulations and guidelines applicable to the legal person must be provided.
3. The applicant must include the following information:
 
3.1 Its name and the name it intends to use in Québec if different (s. 30, 3rd par. (1) IA);
 
s. 30, 3rd par. (1) IA n/a
 
3.2 The address of its head office and, if the latter is not in Québec, the proposed address of its principal establishment in Québec, if any; (s. 30, 3rd par. (1) IA);
 
s. 30, 3rd par. (1) IA If there is no establishment in Québec, an attorney must be designated (see 3.9).
 
3.3 The classes of activities for which it is applying for the AMF’s authorization (s. 30, 3rd par. (1) IA);
 
s. 30, 3rd par. (2) IA n/a
 
3.4 If applicable, the conditions and restrictions it wishes to have attached to the authorization; (s. 30, 3rd par. (2) IA);
 
s. 30, 3rd par. (2) IA n/a
 
3.5 The name and address of the actuary and the auditor; (s. 30, 3rd par (3) IA);
 
s. 30, 3rd par (3) IA Refer to s. 116 IA for the qualifications. Add telephone no. and e-mail address.
 
3.6 A description of its financial structure;
 
s. 30, 3rd par. (4)(a) IA A detailed organization chart of the applicant’s ownership structure (including percentages) showing its parent company and all members of the group.
 
3.7 If applicable, the name and address of each holder of a significant interest in its decisions, as well as a description of that interest;
 
s. 30, 3rd par. (4)(b) IA Refer to s. 10 IA, for the definition of “significant interest.”
 
3.8 If the applicant is not a Québec insurer, the name of the regulatory authority of its domicile (home regulator)(under s. 31, 1st par. IA, the competent authority with respect to the insurer’s insurer activities, under the laws of the jurisdiction whose legislation governs the insurer’s constituting act); ;
 
s. 30, 3rd par. (5) IA n/a
 
3.9 If applicable, the name and address of the attorney designated under section 26 of the Act respecting the legal publicity of enterprises (Legal Publicity Act);
 
s. 30, 3rd par. (6) IA Section 26 of the Legal Publicity Act states: “A registrant who is neither domiciled nor has an establishment in Québec must designate an attorney residing in Québec, unless exempted from that requirement by regulation of the Minister.”
 
3.10 If it belongs to a financial group, the name under which the group is known, if any, and, if applicable, the names of the other financial institutions that belong to the group;
 
s. 30, 3rd par. (7) IA Refer to ss. 3 and 4 IA, for the definition of “financial institution” and s. 16 IA, for the definition of “financial group.” These institutions must appear in the organization chart (see 3.6).
 
3.11 The other information prescribed by regulation of the AMF.
 
s. 30, 3rd par. (8) IA No document prescribed by regulation.
 
3.12 Confirmation of membership in a compensation body recognized by the AMF or undertaking to become a member.
 
ss. 89 and 480 IA n/a

Documents to be enclosed with the authorization request for all insurers, except SROs and RUs

Information/documents Source Clarification by the AMF
1. A list of the applicant’s directors and officers, including their names and domiciliary addresses; s. 34(1) IA Including a senior management organization chart.
2. The résumé of each director and officer; s. 34(2) IA n/a
3. A copy of the applicant’s constituting act; s. 34 (3) IA n/a
4. A copy of the applicant’s by-laws or of any other document established for the same purposes; s. 34(3) IA n/a
5. If applicable, a copy of the applicant’s audited financial statements for its most recent fiscal year ended; s. 34(4) IA If the applicant is not already in operation, the financial statements of the partnership or company that, directly or indirectly, controls the applicant.
6. If applicable, the financial statements that the applicant is required to file with its home regulator, to the extent and in the manner that may be determined by regulation of the AMF; s. 34(4) IA
s. 33(2) RARI
Financial Condition Test (FCT) or Dynamic Capital Adequacy Test (DCAT); and In damage insurance:
  • In damage insurance: P&C annual return;
  • In insurance of persons: Life annual return.
 
7. The applicant’s three-year business plan that specifies, in particular: s. 34(5) IA

In addition to the information prescribed under the other items, the business plan must contain:

  • The applicant’s target markets and the business opportunities it is seeking to exploit; A description of governance in connection with Chapter VI of Title II IA;
  • The interest of its project for the insurance market in Québec;
  • Financial forecasts or projections, for at least three complete years of operation, specifying, if applicable, the impact that adding the new activities in Québec will have on the income statement, balance sheet and capital test, including the assumptions used.
 
 
7.1 The means by which the applicant will deal with clients for the insurance contracts it intends to underwrite;
 
s. 34(5) IA  
  • The list of firms, independent representatives and claims adjusters in Québec;
  • A description of the client service and means implemented to protect its reputation in connection with Title II, Chapter IV, “Commercial practices.”
 
 
7.2 The activities it will carry on;;
 
s. 34(5) IA

A detailed description of all products and services that will be marketed in Québec.

The applicant will have to show that the classes applied for are those required for the activities it intends to carry on in Québec.

 
7.3 If applicable, the activities it carries on or will carry on outside Québec;
 
s. 34(5) IA  
  • A description of the activities carried on outside Québec;
  • The policies in in effect within the insurer’s organization;
  • The relationships and key outsourcing agreements between the applicant and its group or third persons;
  • The ceded reinsurance agreements and related terms (including names of reinsurers).
 
8. The other documents prescribed by regulation of the AMF: s. 34(6) IA n/a
 
8.1 Confirmation by the authorities in the place where it was constituted that the applicant is solvent and complies with the laws and regulations of its jurisdiction.
 
s. 33(3) RARI n/a
9. The investment policy. ss. 82 and 480 IA n/a
10. The CCIR licence application form, duly completed; s. 480 IA Visit the website CCIR – Application for an insurer's license This link will open in a new window
11. A copy of the declaration of registration filed with the Registraire des entreprises du Québec (Québec enterprise registrar or REQ), including the insurer’s French name. . s. 480 IA n/a
12. For applications made for the automobile insurance class, the documents/information required under the AIA, if applicable, including: Automobile Insurance Act (AIA) Refer to: Automobile insurance
 
12.1 The rate manual;
 
s. 180 AIA n/a
 
12.2 The ASP and FCSA systems implementation work plan.
 
ss. 177 and 181 AIA n/a
13. An attestation that the insurance policies comply with Québec regulations; s. 480 IA n/a
14. The fees and charges prescribed by government regulation. s. 34(7) IA Refer to the Fees and costs payable to the AMF section of the AMF website.

Documents to be enclosed with the application for authorization – SROs

Contents of the application for authorization submitted by an SRO

Information/Documents Source Clarification by the AMF
1. The applicant must show that it has an amount of capital deemed sufficient by the AMF, which may be less than $5 million; s. 23, 2nd par. IA n/a
2. The applicant must show that it is able to comply with the applicable provisions of the IA; s. 30, 2nd par. IA A statement signed by a person authorized to do so within the legal person regarding compliance with the laws, regulations and guidelines applicable to the legal person must be provided.
3. The applicant must include the following information: s. 30, 3rd par. IA n/a
 
3.1 Its name;
 
s. 30, 3rd par. (1) IA n/a
 
3.2 The address of its head office;
 
s. 30, 3rd par. (1) IA n/a
 
3.3 The classes of activities for which it is applying for the AMF’s authorization;
 
s. 30, 3rd par. (2) IA Refer to section 41 IA for the specific activities that self-regulatory organizations are authorized to carry on.
 
3.4 If applicable, the conditions and restrictions it wishes to have attached to the authorization;
 
s. 30, 3rd par. (2) IA n/a
 
3.5 The name and address of the actuary and the auditor;
 
s. 30, 3rd par. (3) IA Refer to s. 116 IA for the qualifications. Add telephone no. and e-mail address.
 
3.6 The other information prescribed by regulation of the AMF.
 
s. 30, 3rd par. (8) IA No document required by regulation.
Information/Documents Source Clarification by the AMF
1. If applicable, a copy of the applicant’s audited financial statements for its most recent fiscal year ended; s. 34(4) IA n/a
2. The applicant’s three-year business plan that specifies, in particular: s. 34(5) IA

In addition to the information prescribed under the other items, the business plan must contain:

  • The applicant’s target markets and the business opportunities it is seeking to exploit;
  • A description of governance in connection with Chapter VI of Title II IA;
  • The interest of its project for the insurance market in Québec;
  • Financial forecasts or projections, for at least three complete years of operation, specifying, if applicable, the impact that adding the new activities in Québec will have on the income statement, balance sheet and capital test, including the assumptions used.
 
 
2.1 • The means by which the applicant will deal with clients for the insurance contracts it intends to underwrite;
 
s. 34(5) IA n/a
 
2.2 The activities it will carry on;
 
s. 34(5) IA A detailed description of all products and services that will be marketed in Québec.
3. The applicant’s plan of operation in relation to its insurer activities; s. 35(1) IA The relationships and key outsourcing agreements between the applicant and third persons. The ceded reinsurance agreements and related terms (including names of reinsurers).
4. The act that imposes on persons who are governed by the organization, certain classes of such persons and, if applicable, such persons who carry on their activities within a partnership or company the obligation to be a party to an insurance contract underwritten by the organization; s. 35(2) IA n/a
5. If applicable, the contract entered into with the manager to whom the organization has entrusted the day-to-day operation of its insurance fund; s. 35(3) IA ss. 359 and 360 IA
6. The résumé of each member of the professional liability insurance decision-making committee referred to in section 361; s. 35(4) IA n/a
7. The proposed policies and riders; s. 480 IA n/a.
8. An attestation that the insurance policies comply with Québec regulations; s. 480 IA n/a
9. A certified true copy of the resolution of the board of directors of the Order authorizing the constitution of an insurance fund; s. 480 IA n/a
10. The investment policy; ss. 82, 365 and 480 IA n/a
11. The other documents prescribed by regulation of the AMF; s. 34(6) IA No document required by regulation.
12. The fees and charges prescribed by government regulation. s. 34(7) IA Consult the section Fees and costs payable to the AMF.

Contents of the application for authorization submitted by a reciprocal union

Information/Document Source Clarification by the AMF
1. The applicant must show that it has an amount of capital that is deemed sufficient by the AMF, which may be less than $5 million; s. 23, 2nd par. IA

In the case of a reciprocal union not yet in operation:

Provide an actuarial report on the minimum funding requirement.

In the case of a reciprocal union already in operation:

Provide a dynamic capital adequacy test (DCAT).

2. The applicant must show that it is able to comply with the applicable provisions of the IA; s. 30, 2nd par. IA A declaration signed by a person authorized to do so within the legal person regarding compliance with the laws, regulations and guidelines applicable to the legal person must be provided.
3. The applicant must include the following information: s. 30, 3rd par. IA n/a
 
3.1 Its name and the name it intends to use in Québec if different;
 
s. 30, 3rd par. (1) IA n/a
 
3.2 The name of the mandatary referred to in subparagraph 3 of paragraph 1 of section 188 IA (i.e., the mandatary who will be the same for all the persons in the union, to represent them and perform the acts necessary for the union’s operation, among other things);
 
s. 30, 3rd par. (1) and s. 32 IA n/a
 
3.3 The address of its head office (which is that of its mandatary) and, if the latter is not in Québec, the proposed address of its principal establishment in Québec, if any;
 
s. 30, 3rd par. (1) IA n/a
 
3.4 If the applicant’s head office is outside Québec, the name and address of the attorney designated under the Act respecting the legal publicity of enterprises (Legal Publicity Act);
 
s. 30, 3rd par. (1) IA n/a
 
3.5 The classes of activities for which it is applying for the AMF’s authorization;
 
s. 30, 3rd par. (2) IA A reciprocal union may not carry on activities in the field of insurance of persons (s. 42, 2nd par. IA)
 
3.6 If applicable, the conditions and restrictions it wishes to have attached to the authorization;
 
s. 30, 3rd par. (2) IA n/a
 
3.6 The name and address of the actuary and the auditor;
 
s. 30, 3rd par (3) IA Refer to s. 116 IA for the qualifications. Add telephone no. and e-mail address.
 
3.7 If the applicant is not a Québec insurer, the name of the regulatory authority of its domicile (home regulator) (i.e., under s. 31, 2nd par. IA, the AMF, unless the contract to which each person in the union is a party designates another competent authority as such and the latter authority has issued a licence to the union or granted it an authorization similar to that granted by the AMF under this Act);
 
s. 30, 3rd par. (5) IA n/a
 
3.8 If applicable, the name and address of the attorney designated under section 26 of the Legal Publicity Act This link will open in a new window;
 
s. 30, 3rd par. (6) IA Section 26 of the Legal Publicity Act states: “A registrant who is neither domiciled nor has an establishment in Québec must designate an attorney residing in Québec, unless exempted from that requirement by regulation of the Minister.”
 
3.9 The other information prescribed by regulation of the AMF.
 
s.30, 3rd par. (7) IA No document required by regulation.

Documents to be enclosed with the application for authorization – Reciprocal unions

Information/Documenst Source Clarification by the AMF
1. A list of the applicant’s directors and officers, including their names and domiciliary addresses; s. 34(1) IA n/a.
2. The résumé of each director and officer; s. 34(2) IA Including that of the mandatary.
3. A copy of the applicant’s constituting act, i.e., the contract referred to in section 188 IA. The contract need not be in force provided its text is established. It must contain the measures necessary for the union’s operation, including: s. 34(3) and s. 36 IA n/a
 
3.1 Determining the union’s name;
 
s. 188, 1st par. (1) IA n/a
 
3.2 Constituting the union’s organs, such as a board of directors or a meeting of persons reciprocally bound by insurance contracts, and providing for their mode of operation;
 
s. 188, 1st par. (2) IA n/a
 
3.3 Providing for the designation of a mandatary, who will be the same for all the persons in the union, to represent them and perform the acts necessary for the union’s operation, among other things;
 
s. 188, 1st par. (3) IA n/a
 
3.4 Determining rules:
 
s. 188, 1st par. (4) IA n/a
 
 
3.4.1 governing how persons may join or quit the union or be excluded from it, and
 
 
s. 188, 1st par. (4)(a) IA n/a
 
 
3.4.2 governing the dissolution of the union and the liquidation of the assets held by the mandatary;
 
 
s. 188, 1st par. (4)(b) IA n/a
 
3.5 Providing for the appointment of an auditor and an actuary;
 
s. 188, 1st par. (5) IA n/a
 
3.6 Providing for the pooling of the sums necessary for the persons in the union to carry on their insurer activities and establishing a procedure for determining and collecting the assessments and the additional assessments payable by those persons;
 
s. 188, 1st par. (6) IA n/a
 
3.7 Prohibiting persons in the union from accepting, in any insurance contract to which they are a party, a risk which, if it occurred, would respectively oblige them to pay, after reinsurance, if applicable, an amount that exceeds 10% of the net value of their assets; and
 
s. 188, 1st par. (7) IA n/a
 
3.8 • Providing for any other measure determined by regulation of the AMF.
 
s. 188, 1st par. (8) IA n/a
4. A list of the persons in the reciprocal union; s. 36, 1st par. IA Indicate all persons in the reciprocal union residing in Québec or elsewhere.
5. A copy of the applicant’s by-laws or of any other document established for the same purposes; s. 34(3) IA n/a
6. If applicable, a copy of the applicant’s audited financial statements for its most recent fiscal year ended; s. 34(4) IA n/a
7. If applicable, the financial statements that the applicant is required to file with its home regulator, to the extent and in the manner that may be determined by regulation of the AMF; s. 34(4) IA Also provide a DCAT and a P&C annual return.
8. The applicant’s three-year business plan that specifies, in particular: s. 34(5) IA

In addition to the information prescribed under the other items, the business plan must contain:

  • The applicant’s target markets and the business opportunities it is seeking to exploit;
  • A description of governance in connection with Chapter VI of Title II IA;
  • The interest of its project for the insurance market in Québec;
  • Financial forecasts or projections, for at least three complete years of operation, specifying, if applicable, the impact that adding the new activities in Québec will have on the income statement, balance sheet and capital test, including the assumptions used.
 
 
8.1 The activities it will carry on;
 
s. 34(5) IA

A detailed description of all products and services that will be marketed in Québec.

The applicant will have to show that the classes applied for are those required for the activities it intends to carry on in Québec.

 
8.2 If applicable, the activities it carries on or will carry on outside Québec;
 
 
  • s. 34(5) IA
 
 
  • A description of the activities it carries on outside Québec;
  • The policies in effect within the reciprocal union;
  • The relationships and key outsourcing agreements between the applicant and its group or third persons;
  • The ceded reinsurance agreements and related terms (including names of reinsurers).
 
9. Confirmation by the authorities in the place where it was constituted that the applicant is solvent and complies with the laws and regulations of its jurisdiction. s. 33(3) RARI n/a
10. An attestation that the insurance policies comply with Québec regulations. s. 480 IA For a reciprocal union in Québec (whose mandatary is domiciled in Québec), provide a copy of the insurance policies.
11. For applications made for the automobile insurance class, the documents/information required under the AIA, if applicable, including: Automobile Insurance Act (AIA) Refer to: Automobile insurance
 
11.1 The rate manual;
 
s. 180 AIA n/a
 
11.2 The ASP and FCSA systems implementation work plan.
 
ss. 177 and 181 AIA n/a
12. The other documents prescribed by regulation of the AMF; s. 34(6) IA n/a
13. The fees and charges prescribed by government regulation. s. 34(7) IA Refer to the Fees and costs payable to the AMF section.

Granting of authorization

Authorization granted to an applicant

Section 39 IA sets out the conditions that must be met in order for the AMF to grant its authorization to an applicant:

  • The applicant has provided the information and documents required under the Act and has paid the fees and charges payable (s. 39(1) IA);
  • In the AMF’s opinion,
    • The applicant has shown that it is able to comply with the applicable provisions of IA (s. 39(2)(a));
    • There are no serious reasons to believe that a holder of a significant interest in the applicant’s decisions is likely to interfere with the applicant’s adherence to sound commercial practices or sound and prudent management practices (s. 39(2)(b) IA);
    • The applicant’s name is not misleading (s. 39(2)(c) IA).

Section 40 IA provides that, in granting its authorization, the AMF may require any undertaking or the attachment of conditions and restrictions.

Authorization granted to an SRO

Pursuant to section 41 IA, the authorization granted to an SRO is limited to professional liability insurance covering persons governed by the organization at the time of the injurious act or omission, unless the AMF authorizes the organization, on its application, to provide the services prescribed in subparagraphs 1 (insurance against misappropriations of funds) and 2 (professional liability insurance covering a partnership or company) of that section.

Authorization granted to a reciprocal union

The authorization granted to a reciprocal union allows the persons in the union to carry on insurer activities among themselves only (s. 42, 1st par. IA). It does not allow them to reinsure persons in another reciprocal union or to carry on activities in the insurance of persons sector (s. 42, 2nd par. IA).

Maintenance of legal existence

According to section 43 IA, the authorization entails, for the authorized insurer, the obligation to maintain its existence until the full and final revocation of that authorization.

The AMF notifies the applicant in writing of its decision (s. 44, 1st par. IA)

When it refuses to grant its authorization or grants it but attaches condition and restrictions, the AMF must notify the prior notice prescribed by section 5 of the Act respecting administrative justice (chapter J-3) This link will open in a new window to the applicant in writing and grant the latter at least 10 days to submit observations, unless the conditions or restrictions are attached at the applicant’s request.

Fees and charges payable

A complete list of fees and costs payable to the AMF is available on the AMF’s website.

Processing time

Except in specific circumstances, the AMF will grant an authorization to carry on insurer activities within 180 days from the date the application is complete.

Insight

Did you know?

The AMF no longer issues licences in paper format as was the case under the Act respecting insurance. Since the coming into force of the Insurers Act on June 13, 2019, the concept of licence no longer exists and has been replace by the concept of “authorization to carry on insurer activities in Québec.”

Authorized insurers will be listed in the AMF’s Register – Insurers, Deposit institutions and Trust companies. The information contained in this register is public information; it may be set up against third persons as of the date it is entered and is proof of its contents for the benefit of third persons in good faith (s. 176, 2nd par. IA).

End of the insight