The Autorité des marchés financiers (AMF) recently imposed penalties totalling $25,000 on the Foresters Life Insurance Company for violations related to the distribution of creditors group mortgage insurance products in Quebec.
The AMF has sanctioned Foresters for having sold creditors group mortgage insurance through a distributor in Quebec without having furnished the regulator with its distribution guide for these products. The regulator is reprimanding the insurer for having sold between 241 and 264 of these products over a period of three years and nine months.
The AMF also rebuked Foresters for either failing to meet its demands or for not having done so adequately, for having given responses that were late, incomplete, incorrect, or inconsistent.
As a result, Foresters has withdrawn its distribution guides for creditors group mortgage insurance and general leasing creditors group insurance. The insurer has agreed with the AMF that it should file new distribution guides that comply with the applicable laws and regulations if it wishes to distribute these new products in Quebec.
"When Foresters Life Insurance Company was notified by the regulator, we took appropriate steps and arrived at an agreement that was satisfactory to the regulator," said Foresters spokesperson Lori Abbott when contacted by FlashFinance.ca, a sister publication of The Insurance and Investment Journal. "Both the regulator and Foresters Life Insurance Company agreed that the details of that agreement are confidential and cannot be divulged."