Administrative orders, sanctions against American Bankers Florida Gen Insurance Co. & Costco Wholesale Canada Ltd.
#Montreal; #Quebec; #AdministrativePenalty; #Max+Protectionproduct
Montreal, Jul 6 (Canadian-Media): The Autorité des Marchés Financiers (AMF) made an order and imposed administrative penalty on American Bankers Florida General Insurance Company ( "American Bankers"), as well as imposing an administrative penalty against Costco Wholesale Canada Ltd. ("Costco"), media reports said.
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AMF ordered American Bankers to stop distributing the Max + Protection product, until the company complies with the legislative provisions governing distribution without a representative , if it wishes to continue distributing this product.
The Authority also imposed an administrative penalty of $ 100,000 on American Bankers for having sold the Max + Protection product through distributors, without sending the Authority the related distribution guide and the name and the address of the distributors.
The determination of the penalty was based on the number of policies issued and the amount of premiums received by American Bankers between May 2017 and February 2018.
In addition, depending on the number of policies sold and the commissions received by Costco, the Authority imposed an administrative penalty of $ 50,000 on the Costco for having sold the Max + Protection product from American Bankers without first giving consumers a related distribution guide.
Max + Protection is a product offered by American Bankers which, in addition to extending the manufacturer's warranty against manufacturing defects, notably protects new mobile phones against damage caused by a liquid or by a fall from the device.
Due to the nature of the protections offered, Max + Protection constitutes an insurance product that can be offered for distribution without a representative.
Max + Protection was offered in Costco warehouses in Quebec since May 2017.