By Richard Giroux, Insurance Broker, Director, Courmark Inc.

A few months ago, the RCCAQ was asked to check into sales of travel insurance products, along with the legislation governing permits required for brokerage firms and the impact on errors and omissions (E&O) insurance coverage.

After verifying these matters with our legal representatives and the AMF, we obtained the following information: In order to take part in travel insurance-related sales and services, firms must be authorized to operate in the area of personal insurance.

As a result, firms that are registered exclusively in the area of damage insurance are not authorized to sell travel insurance; they may, however, provide referrals.

Upon receiving this information, our Courmark subsidiary contacted its E&O program insurer and informed it about the situation. Courmark sought to ensure that brokers affected by this program do not suffer any damages, knowing full well that a number of them have already sold travel insurance to their clients.

Consequently, if you are a Courmark E&O client, we are pleased to inform you of the following:

- Firms with the appropriate AMF permits are covered in the event of legal action following sales of travel insurance products.
- Firms that do not hold a personal insurance permit but that have already reported travel insurance revenues in their E&O insurance proposal will be issued a policy rider excluding sales of life insurance products; travel insurance, however, will be covered.
Please bear in mind that you are responsible for complying with all regulations governing the products sold by your firm.

Intentional failure to comply by brokers could impact the types of coverage provided under the E&O policy, in particular coverage for legal fees associated with regulatory investigations (e.g. ethics complaints).

Please bear in mind as well that even if a firm holds a personal insurance permit, travel insurance-related sales and services should only be carried out by a duly certified personal insurance representative (including information gathering, analysis, advisory and sales).

For those seeking comprehensive coverage, this is another good reason to place your trust in Courmark!