Intact Insurance recently announced to brokers that it had reviewed a portion of the content of the template letters with which brokers communicate with their clients when issuing, renewing and/or transferring policies. Many of you have contacted us with questions concerning renewal practices and procedures.
The Chamber of Damage Insurance (CHAD) has also received its fair share of questions. To clarify matters, on July 25, CHAD issued a notice on insurance representatives' role and ethical obligations when renewing insurance policies. The RCCAQ would like to share with you a number of important reminders in the notice:
CHAD would like to remind you about an important rule concerning representatives' role and their ethical obligations when renewing insurance contracts:
The requirement to provide the insured with relevant information remains, regardless of the means of communication. An insurance contract is more than a premium; there is essential information that the insured must know about coverage, limitations and deductibles.
Legal obligations
In connection with policy renewals, Section 39 of the Act respecting the distribution of financial products and services stipulates that insurance representatives must take all the required measures to ensure that the coverage offered meets clients' needs.
Ethical obligations
Paragraphs 4 and 6 of Section 37 of the Code of ethics for insurance representatives stipulate that representatives have an accountability requirement and must act as conscientious advisors, which includes providing necessary and useful information on the contract and describing specific exclusions.
As we announced in the previous newsletter, we have contacted the insurer to ensure that the tools at your disposal will enable you to carry out your role as effectively as possible. We will keep you posted on any developments in this regard. If you would like to share any comments with us, please email us (communications@rccaq.com).
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