Quebec To Regulate Motor Vehicle Replacement Guarantees As Insurance

On March 27, 2009, following two extensive consultations conducted by the Autorité des marchés financiers (the AMF, Quebec's financial sector regulator), with respect to motor vehicle replacement guarantees, the AMF published Avis de l'Autorité des marchés financiers relatif aux garanties de remplacement automobiles (the Notice), which provided its views on the nature of these guarantees and how they will be regulated in Quebec. A replacement guarantee generally provides coverage for the replacement of a vehicle in the case of a total loss, coverage of the deductible in the case of a partial loss and the use of a replacement vehicle. The consultation process was undertaken to consider the various insurance-like products, such as replacement guarantees, routinely offered by automobile dealers to their customers and whether an insurer's licence is required to offer such products.