AMF reviews reported bankruptcy of a firm offering replacement guarantees that were not covered by an insurer

The Autorité des marchés financiers (AMF) is reviewing a notification it received that the Courtier en service automobile (CSA), a firm offering replacement guarantees, filed for bankruptcy on Aug. 4, 2011.
“The bankruptcy stems from claims filed by clients over a period when the guarantees in question were not covered by an insurer,” the AMF states online.
The AMF said it is currently reviewing the matter and “gathering all the information it needs for a full understanding of the situation in a timely manner.”
As part of its review, it is conducting exchanges with the Chambre de l’assurance dommage (ChAD) and the Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ), which represents brokerage firms and insurance brokers in Québec.
Since Oct. 1, 2010, the AMF has overseen the matter of replacement guarantees, ultimately recognizing them as replacement insurance products that may only be distributed by an insurer duly registered with the AMF.