One year ago (June 13, 2018), Quebec's National Assembly adopted Bill 141, which gave the financial sector a brand-new legislative framework. As the anniversary date nears, we'd like to provide you with this reminder of the key dates affecting brokerages.
Most importantly, Bill 141 made no changes to the application of the Code of Ethics.
- June 13, 2018: Bill 141 was adopted by the National Assembly
- December 13, 2018: condo insurance
Bill 141 did include a number of amendments to Quebec's Civil Code. These changes, in particular those involving condominiums, took effect on December 13, 2018.
Drawing on its in-depth expertise in the area, the Insurance Bureau of Canada designed a web-based tool explaining the various situations that can arise when a claim involving a condominium ("divided co-ownership") is filed. You can consult it here.
- June 13, 2019: online insurance sales
As of the above date, new legislative provisions came into effect, along with regulations governing online sales of insurance products.
It should be noted that these provisions pertain exclusively to transactional websites that are operated by insurers or brokerages and that enable consumers to purchase P&C insurance without the involvement of a certified representative.
This new distribution channel was accompanied by a change in the rules governing information collection, which previously only applied to certified representatives. In this regard, it should be remembered that the collection process can only focus on factual information and that certified representatives remain responsible for it – and this responsibility cannot be transferred!
The AMF is expected to outline the benchmarks for information collection in the near future. As we await the publication of this document, you are advised to proceed with caution. Any hasty business decisions could have adverse consequences!
- December 13, 2019: brokerage distribution provisions
These provisions, which pertain directly to brokerages, set out a number of obligations, including shareholder rules, disclosure requirements and the ability to obtain quotes from at least three insurers that are not part of the same financial group in the personal insurance line.
Meanwhile, the AMF's regulatory work is ongoing.
The RCCAQ will be continuing its lobbying efforts aimed at giving brokerages a voice on all of these issues.
