D-9.2, r. 6 - Regulation respecting special brokerage in damage insurance

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chapter D-9.2, r. 6
Regulation respecting special brokerage in damage insurance
DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES — SPECIAL BROKERAGE
Act respecting the distribution of financial products and services
(chapter D-9.2, s. 212).
D-9.2
September 1 2012
1. A damage insurance broker is authorized to act as a special broker provided that the firm in which he is employed or on whose behalf he acts applies in writing to the Autorité des marchés financiers and provides, with the application, the following documents and information:
(1)  the name, residential address and certificate number of the damage insurance broker who intends to act as a special broker;
(2)  the names and addresses of at least 3 damage insurers holding insurance licences in Québec and whose services the firm is authorized to offer and whose products the firm is authorized to sell;
(3)  a copy of the firms’s financial statements for its most recent fiscal year, signed by 2 of the firms’s directors;
(4)  a copy of the security prescribed in section 2.
O.C. 833-99, s. 1.
2. The firm on whose behalf the special broker acts must provide the Authority with a security guaranteeing the obligation of the outside insurers whose products the special broker sells for a blanket amount of $100,000, regardless of the number of insurance contracts placed through a special broker.
O.C. 833-99, s. 2.
3. Each month, the damage insurance broker authorized by the Authority to act as a special broker, must forward to the Autority the following documents and reports:
(1)  a copy of all statements signed by clients in accordance with Schedule 1 to this Regulation;
(2)  a list indicating the names of the insurers that refused to grant insurance for a given risk and a description of the contemplated risk and the name of the person who requested such insurance;
(3)  the name and principal establishment of all outside insurers, as that term is defined in section 41 of the Act respecting the distribution of financial products and services (chapter D-9.2), who agreed to insure the contemplated risk.
O.C. 833-99, s. 3.
4. Every 6 months, a broker in damage insurance authorized by the Authority to act as a special broker shall forward a report to the Authority containing the following information:
(1)  for each risk placed with an outside insurer, the number of insurers holding a licence issued under the Insurers Act (chapter A-32.1) who were offered the coverage of the risk, the name of the outside insurers with whom the risk was placed by the special broker, and a brief description of the risk placed;
(2)  the percentage and number of risks entrusted to him by natural persons, partnerships or legal persons having their domiciles, principal establishments or head offices in Québec, both in terms of the number of risks and the value of the premiums placed with an outside insurer.
O.C. 833-99, s. 4.
5. (Omitted).
O.C. 833-99, s. 5.
STATEMENT BY THE CLIENT TO A SPECIAL BROKER ACTING FOR AN INSURER NOT HOLDING A LICENCE IN QUÉBEC
I, the undersigned ____________________
Identification of the client
Name: ____________________
Address: ____________________
Telephone no.: ____________________
hereby declare that, in respect of the following property or other interests to be insured:
Designation and location of risks to be insured
(a) Description of the risk: ____________________
(b) Exact address of the risk: ____________________
the following insurers, holding licences in Québec
Identity of insurers that refused to grant the insurance coverage requested
(a) ____________________
(b) ____________________
(c) ____________________
have refused to grant me damage insurance applied for in the amount of
Amount of insurance applied for $__________.
IMPORTANT
Furthermore, I hereby state that I was notified by the broker that:
(a) the insurer with which the risk is to be placed does not hold a licence in Québec;
(b) said insurer does not have an establishment in Québec;
(c) said insurer is not subject to supervision by the Autorité des marchés financiers and does not file the statements and reports prescribed under the Insurers Act (chapter A-32.1);
(d) said insurer is not required to maintain sufficient reserves to guarantee its obligations toward its insurers in Québec.
IN WITNESS WHEREOF, I have signed this statement,
in: ____________________ on: ____________________

______________________________
(Client’s signature)
(In the case of a legal person, the signature of its duly authorized representative)

______________________________
(Witness)
O.C. 833-99, Sch. I.
REFERENCES
O.C. 833-99, 1999 G.O. 2, 2098
S.Q. 2018, c. 23, s. 811