FOR IMMEDIATE RELEASE
NOTICE TO ASSUMPTION MUTUAL LIFE INSURANCE COMPANY AND
EXCELLENCE, COMPAGNIE D’ASSURANCE-VIE
Montréal, November 12, 2004 – The Autorité des marchés financiers (the “AMF”) is notifying
Assumption Mutual Life Insurance Company (“Assumption”) and Excellence, Compagnie
d’assurance-vie (“Excellence”) in respect of an order to cease accepting insurance proposals no
later than February 1, 2005 from automobile dealers for personal automobile credit insurance
Under the current process, these personal credit insurance products are offered by dealers to
clients who wish to buy insurance to ensure repayment of the balance on an automobile loan or,
as the case may be, on a long-term lease in the event of death or disability. The administrators
of these insurance programs are Lepage Bisson & Associés on behalf of Excellence and Le
Groupe HPS (9045-8779 Québec inc.) on behalf of Assumption. Both administrators are
registered with the AMF as firms in insurance of persons.
According to the AMF, automobile dealers are not authorized to distribute personal automobile
credit insurance products under An Act respecting the distribution of financial products and
Dealers may only offer these products on condition they follow the system provided for under the
Act. It includes the following obligations:
• disclosing any remuneration in excess of 30% of the cost of the premium;
• offering a group insurance product;
furnishing a distribution guide to the client before insurance is purchased;
freedom of choice for the client to sign a contract with the insurer he prefers;
• possibility for the client to cancel the contract within 10 days of signing.
The AMF intends to take all measures necessary to ensure compliance with the Act.
Under the notice, Assumption and Excellence may present their observations to the AMF by
November 29, 2004, after which the AMF will determine whether to issue an order.
Established on February