This summary does not constitute a legal opinion. The information it contains may not reflect the current state of the law.
The investigation revealed that the brokers did not personally gather the information required to establish the insurance contracts. In fact, the new contracts that had been issued were actually copies of old contracts that the agent had put into force.
Yet section 27 of the Act respecting the distribution of financial products and services is quite clear and unequivocal on this matter:
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.
When representatives agree to put new insurance contracts into force without having personally collected and verified the information with the clients, they are compromising consumer protection: this is a case of neglecting to respect sound professional practices.