The issue of insurance coverage sold by auto dealerships keeps on resurfacing. Thanks in particular to the RCCAQ's efforts, auto dealers' practices are coming under increasing scrutiny with a view to protecting consumers. Nevertheless, it is a good idea to review what auto dealers are legally allowed to do, as well what they are prohibited from doing.

What auto dealerships ARE LEGALLY ALLOWED TO DO:

• Offer replacement insurance (FPQ No. 5).
• Offer life insurance, health insurance and job loss insurance if it relates to automobile financing.
• Refer clients to an insurance representative to obtain products that the dealer is not allowed to offer.
• Provide a client with the contact information of a representative or a registered person.
• Provide the representative or registered person with the name and contact information of a client or list of clients. This list must only include the information required to contact the clients (name, address, email and phone numbers).
• Receive remuneration that is in no way dependent on the referral outcome (sale/no sale of insurance products).

Also, dealerships are in principle required to inform clients that replacement insurance is also offered by brokers.

What auto dealerships ARE NOT ALLOWED TO DO:

• Offer auto insurance (FPQ No. 1) or advise clients on the coverage provided by such contracts.
• Gather personal information with a view to obtaining a quote.
• Complete on the client's behalf or help the client to complete an insurance quote request or an insurance proposal (even if the client so requests).
• Provide clients with any advice on insurance matters.
• Make the signing of an automobile sales contract contingent on the signing of a replacement insurance contract.
• Make the signing of a loan contract contingent on the signing of an insurance contract with an insurer designated by the auto dealership.