Since 2012, the RCCAQ has been protesting the illegal practices of certain auto dealers who have been breaking the law and taking advantage of consumers' trust. These efforts have now paid off: the AMF recently issued a notice aimed at strengthening the requirements for auto dealerships. The RCCAQ would like to take this opportunity to pay tribute the AMF's investigatory work and the steps it has taken to put a stop to these anti-consumer practices.
Issue of interest
Back in 2015, an initial milestone was reached when the AMF imposed penalties on nine auto dealers who had engaged in abusive practices.
Since then, the RCCAQ has worked on this issue tirelessly. In December 2017, when the parliamentary committee was reviewing Bill 141, the RCCAQ submitted a position paper in which it stated that product distribution without the involvement of certified representatives "puts consumers at risk because it enables salespeople to offer insurance products […] without having the necessary training or being subject to the same requirements." At that time, the RCCAQ proposed implementing a restricted form of certification applicable to individuals selling insurance products in a context of non-representative distribution.
Major advances
With the AMF's new notice published this week, the RCCAQ acknowledges that major advances have been made that will benefit consumers. "This is good news," said RCCAQ chair Christopher Johnson. "We have always spoken out against these anti-consumer practices knowing that brokers are certified to advise clients and can offer the same product with premiums that are up to 60% cheaper than those sold by auto dealers."
The most noteworthy AMF measures include eliminating the choice of indemnification options on the FPQ 5 (often selected by default on the client's behalf) or disclosing the remuneration received by auto dealers selling insurance products for more than 30% of their underlying cost.
Various other matters were covered in the AMF's notice, including implementing an information sheet, bringing in stricter measures governing auto dealer training and increasing insurers' accountability in this regard. You can review all of the details of the AMF notice by clicking here.
Some of these measures will take effect on December 1, 2018. The RCCAQ will be continuing its lobbying efforts in this regard to ensure that the practices in effect are fair and aligned with consumers' interests.
