In recent months, the AMF reviewed Q.P.F. #5 (Replacement Insurance) and did away with Option 1, i.e. replacing a vehicle at the designated merchant/dealership. The new Q.P.F. #5, which will be mandatory as of March 1, 2019, is available on the AMF's website.

Feedback on the new AMF notice

The RCCAQ has consistently spoken out against certain auto dealership practices that harm consumers. Brokers are certified to advise clients and can offer the same product for a much lower premium (around 63% lower on average) than dealerships can.* It is essential that measures be put in place to better protect and inform consumers. In that regard, the AMF's new notice (issued in June 2018) was warmly welcomed by the RCCAQ.

In particular, the notice referred to withdrawing the choice of indemnity option for Q.P.F. 5  (often selected by default for the client) or disclosing the dealership's remuneration for selling an insurance product with a mark-up of more than 30%.

Various other issues are addressed, including the implementation of a fact sheet, stricter measures governing training at dealerships and strengthening insurers' accountability in this regard. For complete details on the AMF notice, please click here.

Some of these measures will take effect on December 1, 2018. The RCCAQ will keep up its lobbying efforts on this issue with a view to ensuring that the practices in place are fair and tailored to consumers' interests.

*"As regards the average written premium in 2017, there is a difference of $735, or 63%, between the distribution model without a certified representative ($1,897) and that with a certified representative ($1,162)." 2017 AMF Annual Report on Financial Institutions (unofficial translation)