Application

This section is for authorized insurers or authorized reciprocal unions wishing to add one or more classes of activities to their authorization in order to expand their insurer activities in Québec.

Application for authorization to expand activities

The first paragraph of section 30 IA requires an authorized insurer or authorized reciprocal union that intends to expand its insurer activities by adding one or more classes of activities to file an application with the AMF for its authorization. The information to be included in the application for authorization is set out in section 33 IA and the documents to be enclosed with the application are set out in section 37 IA.

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

The applicant must show that it is able to comply with the applicable provisions of the Act (s. 30, 2nd par. IA).

The provisions pertaining to an application for authorization to expand insurer activities are found in sections 30 to 44 of the Insurers ActThis link will open in a new window (IA) (CQLR, c. A-32.1).

Checklists

The following checklists describe in detail the information to be included in and documents to be enclosed with the application for authorization.

Contents of the application for authorization to expand activities

Information/documents Source Clarification by the AMF
1. The applicant must show that it is able to comply with the applicable provisions of the Act s. 30, 2nd par. IA n/a
2. The classes of activities for which the applicant is applying to expand the AMF’s authorization. ss. 33 (1) and 30, 3rd. par. (2) IA n/a
3. If applicable, the conditions and restrictions it wishes to have enclosed with the authorization. ss. 33 (1) and 30, 3rd par. (2) IA n/a
4. If applicable, the name and address of the attorney designated under section 26 of the Act respecting the legal publicity of enterprises. This link will open in a new window ss. 33 (2) and 30, 3rd par. (6) IA n/a
5. The information required to update the other information contained in the register provided for in section 176, IA. s. 33 (3) IA Consult the information in the AMF’s Register – insurers, deposit institutions and trust companies and indicate if changes need to be made.

Documents to be enclosed with the application for authorization to expand activities

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 (for an SRO, the financial statements of its insurance fund). ss. 37 and 34 (4) IA Attach these financial statements only if they have not already been filed with the AMF.
2. 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. ss. 37 and 34 (4) IA Attach these financial statements only if they have not already been filed with the AMF.
3. If applicable, the applicant’s three-year business plan that specifies, in particular: ss. 37 and 34 (5) IA

Regarding the new class(es), the applicant’s comments on the reasons for its application, the target markets and business opportunities it is seeking to exploit and the interest of its project for the Québec system;

The business plan must contain financial forecasts or projections for at least three full years of operation, specifying, if applicable, the impact that adding the new class(es) of activities in Québec would have on the income statement, balance sheet\statement of financial position and capital test, including the assumptions used.

 
3.1 The means by which the applicant will deal with clients for the insurance contracts it intends to underwrite;
 
ss. 37 and 34 (5) IA

Regarding the new class(es):The marketing and distribution methods in Québec.

If applicable, the list of firms, independent representatives and claims adjusters in Québec.

 
3.2 The activities it will carry on;
 
ss. 37 and 34 (5) IA n/a
 
3.3 If applicable, the activities it carries on or will carry on outside Québec;
 
ss. 37 and 34 (5) IA

Regarding the new class(es), a description of the activities it carries on outside Québec

If applicable, the impact on reinsurance

4. If the applicant is an SRO: The act that imposes on persons who are governed by the applicant, 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 applicant.

If the applicant is a professional order: this act may be a draft regulation pending approval under the Professional Code (chapter C-26) and the partnership or company referred to is a partnership or company referred to in Chapter VI.3 of that Code.

ss. 37 and 35 (2) IA n/a
5. If applicable, the other documents prescribed by regulation of the AMF; ss. 37 and 34 (6) IA n/a
6. The CCIR licence application form, duly completed; s. 480 IA Refer to the CCRA site – Licence application form This link will open in a new window
7. For applications made for the automobile insurance class, the documents and information required under the AIA, if applicable, including: Automobile Insurance Act (AIA) Refer to: the Automobile insurance section This link will open in a new window of the AMF website
 
7.1 The rate manual;
 
s. 180 AIA n/a
 
7.2 The ASP and FCSA systems implementation work plan;
 
ss. 177 and 181 AIA n/a
8. An attestation that the insurance policies comply with Québec regulations; S. 480 IA n/a
9. The fees and charges prescribed by government regulation. s. 34 (7) IA Refer to the Fees and costs payable to the AMF This link will open in a new window section of the AMF website.

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 expand insurer activities within 90 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