Frédérique De Simone
26 July 2019 13:30
Thefinancial markets Authority has imposed an administrative penalty of $ 180,000 to the insurance company AIG Canada (AIG) because of a failure in the distribution of a product of group disability insurance for holders of American Express credit cards for companies, issued by the AMEX Bank of Canada (“AMEX”). The announcement was made Friday.
AIG offered insurance on some of its credit cards AMEX, automatically, as a benefit associated with it. It was not possible for card holders to refuse protection, otherwise than by refusing the card. In addition, no certified representative did not intervene in the accession process.
AIG acknowledges his fault
AIG has recognized that the distribution of this product was not in compliance with certain provisions of the Act respecting the distribution of financial products and services, and that it was contrary to the sound business practices of insurers.
This product has been available in Quebec for more than 24 years. The information available for the years 2012 to 2018 inclusive, has enabled the Authority to see that 22 652 people have been covered by this insurance and that of total premiums of approximately 133 000 $ have been collected over the years. In addition to the annual fees associated with the credit card, which varies between 99 $ and 499 $, no extra fees were required of the insured as a bonus, it being assumed by AMEX.
The penalty has no impact on the validity, the terms and conditions of certificates of insurance already issued, said the Authority. These are to remain in force despite the end of the distribution of the insurance product, and this, at the latest until 1 January 2020.
AIG has offered its full cooperation to the Authority in this matter and has taken the necessary measures to avoid that a similar situation does not occur again, has mentioned the regulator.