By RCCAQ

In the past, you may have received a call from a representative of the Bureau du syndic (BDS) of the Chambre de l’assurance de dommages (CHAD) requesting information concerning an investigation that is underway. Since BDS calls are not that common, it's not always clear how brokers are supposed to react when they receive information requests. Luc Jobin, an attorney with the firm Tremblay Bois Mignault Lemay, has put together the following guide.

The BDS has a dual mission

The syndic is tasked with protecting the public and has investigatory powers in that regard. To that end, the syndic carries out whatever analyses and investigations are deemed necessary in order to address any "abnormal" situations brought to his or her attention. Following these investigations, the syndic may submit a formal complaint to CHAD's disciplinary committee, which will ultimately issue a decision regarding the applications of measures it may wish to take.

The BDS has broad analytical and investigatory powers

The syndic is empowered to require insurance representatives or any other persons connected to the matter at hand to answer questions and provide information, including clients' personal information. This is one of the exceptions to Canada's Privacy Act (sec. 18). In all other situations, however, insurance representatives are not authorized to disclose a client's personal information to a third party without the client's prior written consent.

Brokers are required to respond to BDS information requests

Brokers are legally required to provide all information requested by the BDS. If they fail to do so or do not do so on a timely basis, they could be charged with obstructing the investigation. Ultimately, a failure to respond could trigger a complaint with respect to the representative, in accordance with sections 34 and 35 of the Code of Ethics of Damage Insurance Representatives. However, the BDS is not required to disclose the details of the matter being investigated; disclosure is solely at its discretion.

Brokers are governed by their Code of Ethics and the Professional Code

Although few people are aware of this fact, certain provisions of Quebec's Professional Code apply to insurance brokers. This becomes clear from a reading of section 376 of the Act Respecting the Distribution of Financial Products and Services, which focuses on filing and investigating complaints, in addition to related decisions and penalties. This provision makes reference to section 124 and following of the Professional Code and thus has a bearing on insurance representatives' obligations.

The BDS may contact you via various channels

When seeking information, the BDS may contact brokers however it sees fit, including via telephone or in writing. Brokers may also be asked to meet with the BDS. In addition, you could receive a call directly from a BDS employee asking about a specific matter.

If the BDS calls you, it means you are the insurance representative with knowledge of the issue, so you are the one who must hold the relevant information. The BDS is not required to inform your immediate supervisor ahead of time. In fact, in order to ensure transparency and so as not to hinder the investigation, discussions will be held directly between the syndic and the insurance representative.

Make sure the caller is from the BDS

If you receive a call from someone claiming to be from the BDS but you have doubts as to the person's identity, don't take any chances! Offer to call him or her back and look up the BDS's contact information on its website. That way, you'll be certain that you're disclosing confidential information to an authorized person.

Take the time you need to review your files before responding

The questions asked by the BDS may be hard-hitting. Although you are required to respond with due diligence, you do not need to do so immediately. In fact, the BDS is sure to appreciate your professionalism if you take some time to review your files with a view to providing the most accurate and complete information possible. However, if you have any doubts as to a request that's been made, be sure to consult your legal advisor or RCCAQ Insurance's legal assistance department.*

The analysis or investigation process must be handled with discretion

You may be tempted to contact the parties involved after receiving a call from the BDS. It is very important, however, to keep in mind that you must comply with the obligations in section 36 of your Code of Ethics, which states that you must not hinder the investigation in any way. Depending on the circumstances, entering into contact with the subject of an investigation could constitute interference and could result in a complaint being filed against you.