The RCCAQ has uncovered another reason why Bill 188 (An Act respecting the distribution of financial products and services) should be reviewed, particularly as regards the distribution of financial products and services without the involvement of an insurance representative.

For example, auto dealers are now offering a new product known as "anti-wear protection" to individuals who rent vehicles under long-term leases. This type of contract is being presented as a warranty, even though it is more closely resembles insurance coverage.

"Insurance is a complex product so consumers need sound advice to ensure that their property is adequately covered," said RCCAQ chair Vincent Gaudreau.

He added: "Financial managers at auto dealerships are not certified insurance representatives. Therefore, they are not bound by the stringent set of ethical and legal requirements that other certified industry stakeholders are subject to. Certified representatives' duties go above and beyond informing consumers about the products they offer; they also seek to determine if products meet consumers' needs and whether consumers are in fact eligible to purchase them."

Mr. Gaudreau noted that a lingering sense of confusion is evident in the sector; he is counting on the Autorité des marchés financiers (AMF) to address this situation with a view to protecting consumers from financial costs.

This example is consistent with other unfair practices engaged in by auto dealers as regards replacement insurance.