The Sovereign, General Insurance Company v. Autorité des marchés financiers (March 20, 2013)
Case # 34413
In order to act as an insurance company in Quebec, registration with the Autorité des marchés financiers is required. The appellant Sovereign was authorized to offer insurance in Quebec but instead issued policies through brokers in Winnipeg and Toronto. GE Commercial Distribution Finance (“GE”), which was based in Toronto, financed the inventory of recreational vehicles on merchants’ premises. In 2004, GE notified its clients that it had opted for a new master policy from Sovereign through Flanders. At GE’s invitation, 56 Quebec merchants subscribed to the policy. One of the broker’s rivals filed complaints against the brokers. The rival alleged that one of them was acting as an insurance broker in Quebec without a licence. The Autorité des marchés financiers conducted an inquiry and issued 56 statements of offence against Sovereign. The offences were related to consenting to or authorizing the issue of an insurance policy by a broker not registered in Quebec.