Regulatory Alerts2015-02-13
Notice Regarding Replacement Insurance – Non-Compliant Practices
The Autorité des marchés financiers has issued a notice requiring insurers and distributors to immediately cease ten identified non-compliant practices regarding the distribution of replacement insurance. Distributors must transparently disclose remuneration exceeding thirty percent of the sale price, offer both vehicle replacement and indemnity options, avoid bundling prior debts into purchase prices, and refrain from requiring the insurance product to secure financing or preferential rates. Insurers must implement robust oversight and sound commercial practices to ensure their distributors comply with the Insurance Act and Distribution Act, as the Authority reserves the right to impose administrative sanctions or order product cessation for persistent violations.