RCCAQ continues to work with government on sales of auto replacement guarantees

The Regroupement des cabinets de courtage d’assurance du Québec (RCCAQ) is still working with its provincial government for clarification around the selling of insurance products without representation, says Louise Mathieu, RCCAQ president.
The association made important gains on the issue with the adoption of Bill 74, an Act amending various legislative provisions principally to tighten the regulation of the financial sector, in December 2009.
Adopted on Dec. 3, 2009, the bill closes a legal loophole that allowed the distribution without a representative of a wide range of products related not only to automobiles (such as replacement or anti-theft marking guarantees), but also immovable assets (for example, a condo promoter will no longer be able to sell condo insurance).
Now distribution without a representative is restricted solely to accessory products to the sale of vehicles, more specifically replacement guarantees.
The framework for the sale of these products has been tightened. Dealers are now obliged to reveal when commissions are higher than the percentage prescribed by law.
“We continue to meet with politicians and work on this file,” says Mathieu. “The RCCAQ will continue to work with the AMF to ensure that the framework and monitoring mechanisms for distribution of replacement insurance products by automobile dealers are sufficient to guarantee the best possible protection for consumers.”