Car dealerships cannot collect information required to insure your clientsCar dealerships cannot collect information required to insure your clients

​This summary does not constitute a legal opinion. The information it contains may not reflect the current state of the law.

​Over the past few months, I have gone before the discipline committee of the Chambre de l’assurance de dommages to file five formal complaints against five separate representatives for very similar offences all related to a widespread com- mercial practice. All five were found guilty.

The offences occurred after the firms employing these representatives began doing business with car or motorcycle dealerships. These firms did not comply with the obligations of sections 27 and 28 of the Act respecting the distribution of financial products and services:

27. Insurance representatives must personally gather the information that is necessary to assess a client’s needs, in order to propose the insurance product that best meets those needs.

28. Insurance representatives must, before making an insurance contract, describe the proposed product to the client in relation to the needs identified and specify the nature of the coverage offered.

What follows is an overview of the five disciplinary files. The discipline committee clearly ruled that the professional practice certain firms instruct their certified representatives to engage in does not comply with the Act and goes contrary to the protection of the public.

8/12/2014 7:12:01 PM