The Regroupement des cabinets de courtage d'assurances du Québec (RCCAQ) has announced its support for the Quebec financial services regulator, the Autorité des marchés financiers (AMF), in its plans to regulate auto replacement insurance
In the May issue of the Journal de l'assurance, a sister publication of The Insurance and Investment Journal, the AMF announced plans to regulate the sale and purchase of replacement auto insurance. On June 2 RCCAQ, an organisation representing more than half of the province's insurance brokers, issued a statement calling the move "a major step forward" in efforts to deal with shady business practices.
In Quebec, consumers can protect themselves against partial or total loss of a car by taking out "replacement" or "replacement value" insurance. Auto dealers are not licensed to sell the latter or give advice on related coverage, although in some cases this is what they have done.
"Over the past two years, we have submitted evidence to the AMF detailing illegal practices engaged in by certain auto dealers who have been taking advantage of consumers' ignorance about this product," commented RCCAQ chairman Jean Bilodeau. "Our efforts are now starting to pay off."