AMF extends transition period for ban on sale of replacement guarantees by unlicensed agents

The Autorité des marches financiers (AMF) has extended the transition period for the sale of replacement guarantees by two months to Sept. 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 Oct. 1, 2010. Previously the deadline was Aug. 1, 2010.
Motor vehicle replacement insurance will supplant replacement guarantees. The new product will by issued by duly authorized insurers, an AMF release says.
“This exceptional measure is intended to ensure the effective implementation of the new regime and to protect consumers,” it adds.
The AMF, in 2009, deemed the motor vehicle replacement guarantee offered by car dealers to be an insurance product subject to regulatory oversight.
Quebec brokers had been urging the AMF to make such a determination so only those licensed to sell insurance can offer the product.
Brokers expressed concern that consumers buying the guarantees at point-of-sale would not benefit from consulting with an insurance broker or agent to discuss other available insurance products, some of which have a wider scope than the guarantees offered by car dealers.