The AMF gives a slap on the wrist at Costco in Canada and American Bankers

L’AMF donne une tape sur les doigts à Costco Canada et American Bankers

The financial markets Authority (AMF) gives a slap on the wrist at Costco in Canada and the company American Bankers insurance company of florida for an insurance product offered to consumers in stores.

The two organizations were sentenced to pay a fine of several thousand dollars, and to cease to offer to customers, for the moment, the Max plan+Protection qualified by the two companies “extended warranty”, but rather judged by the AMF of “contract of insurance”.

This protection was used in particular for mobile phones new.

The AMF has imposed an administrative penalty of $ 100,000 to American Bankers insurance Company of Florida and $ 50,000 to Costco Canada. The two organisations called for the suspension of the effects of this decision until the judgment of the Superior Court on the merits of the appeal to the court, which was denied.

The AMF accused American Bankers have sold a protection by a company of distributors, without having submitted to the Authority in the distribution guide, the name and address of the distributors.

The AMF order to American Bankers to comply with the legislative provisions governing the distribution without a representative.

The sanction has been determined based on the number of policies issued and the amount of premiums earned by American Bankers insurance company of florida between may 2017 and February 2018. For Costco, the amount has been determined based, in particular, of commissions received during this period.

Share Button