On May 9, the National Assembly of Québec passed Bill 30, entitled An Act to amend various legislative provisions mainly with respect to the financial sector in Québec (now Law 15).¹ While certain provisions of Law 15 are already in effect, others are scheduled to come into effect by 2026.

This bulletin provides an overview of the key aspects and impact of Law 15 on the insurance industry in Québec.

Distribution without a representative by car dealerships

Starting July 1, 2026,² car and recreational vehicle dealers will no longer be permitted to distribute replacement insurance, that is, property insurance under which the insurer guarantees the replacement of the insured vehicle or insured parts. Instead, such insurance must be exclusively offered and sold through licensed representatives.³

Also, as of July 1, 2026,⁴ life, health and loss of employment insurance contracts for dealer’s debtors, with terms exceeding one year and governed by section 426 of the Act respecting the distribution of financial products and services (the ARDFPS),⁵ must provide that the premium is payable at least once a year for each year of the contract.⁶

Claims adjusters

Law 15 introduces flexibility into the regulations concerning acts reserved for claims adjusters, permitting non-licensed individuals to undertake certain tasks previously exclusive to licensed claims adjusters. This exemption applies to claims amounting to CA$5,000 or less, subject to specific conditions.

As of May 9, 2025,⁷ Law 15 will authorize non-licensed individuals residing in Canada, employed by a firm, independent company, or a claims adjuster, and acting under the supervision of a licensed claims adjuster to handle specific claims,⁸ subject to certain conditions.⁹

Furthermore, the restriction barring claims adjusters from practising in other disciplines has been lifted.¹⁰ So, for example, as of May 9, 2024, damage insurance agents will also be eligible to obtain license to act as claims adjusters, subject to certain conditions.¹¹

Reciprocal unions

Under Law 15, an association incorporated under the Civil Code of Québec¹² now has the opportunity to seek authorization to act as an insurer for its members within the framework of a reciprocal union. To secure approval from the Autorité des marchés financiers (AMF), a newly established reciprocal union in Québec must first draft a written contract of association among its members as per the provisions of the Civil Code.¹³

In addition, Law 15 eliminates the previous requirement of a CA$5,000,000 capital,¹⁴ thereby removing a significant barrier to establishing new reciprocal unions in Québec. However, applicants must still demonstrate their capability to gather adequate capital before obtaining AMF authorization. Additional provisions relating to the limitations, internal structure and governance of reciprocal unions, as well as the scope of their prerogatives to act as insurers, are also outlined in Law 15.

These provisions regarding reciprocal unions came into effect on May 9, 2024.

Additional obligations for life and health insurers

Law 15 introduces new obligations on life and health insurers, requiring them to undertake measures to obtain information enabling them to determine whether payment of the amount provided for in the life insurance contract to the insured or beneficiary is due.¹⁵

Moreover, when payment of an amount becomes due, life and health insurers will be required to proactively inform beneficiaries who have not claimed the due amount under an individual life insurance contract until three years have elapsed since the due date.¹⁶

Law 15 also grants new regulatory authority to impose further specific measures on life and health insurers, to be determined through subsequent regulations.

These changes will come into effect at a later date to be determined by the government.

Re-examination of an authorization under the Insurers Act

Law 15 streamlines the review process conducted by the AMF when an authorized insurer becomes the controlling shareholder of a group.

As a result, it will no longer be necessary to re-examine the authorization in the event that the authorized insurer become the holder of control of a group if the operation does not have a significant effect on the authorized insurer. For this type of operation, all that will be required is for the authorized insurer to notify the AMF.¹⁷

In this respect, Law 15 establishes that becoming the holder of control of a group is considered not to have a "significant effect on the authorized insurer" when this operation does not result in a change of more than 50% of the voting rights, as is the case for the acquisition of assets.¹⁸

These changes came into effect on May 9, 2024.

Powers of intervention of the AMF

Law 15 introduces adjustments to certain intervention powers of the AMF and the Tribunal administratif des marchés financiers (TMF). These amendments empower the TMF to impose administrative penalties of up to CA$2,000,000 per contravention on individuals who have breached the Act or assisted others in breaching it.¹⁹

Additionally, Law 15 harmonizes all legislation administered by the AMF regarding the recovery of sums due following the imposition of administrative monetary penalties. It also introduces new provisions simplifying the recovery process of such sums by the AMF. Thus, if the party responsible for a breach fails to pay an administrative penalty, its directors and officers will be held jointly and severally liable unless they demonstrate that they exercised prudence and diligence to prevent the violation.²⁰

For more information or to discuss the potential impacts of Law 15, please contact the authors, Nathalie Durocher and Jade Lemieux.

*This article does not constitute an opinion and should not be construed as such.

[1] (2024, chapter 15).

[2] See section 135(1) of Law 15, which provides for an effective date of July 1, 2026.

[3] See section 110 of Law 15.

[4] See section 135(1) of Law 15, which provides for an effective date of July 1, 2026.

[5] Chapter D-9.2.

[6] See section 111 of Law 15.

[7] See section 135(2) of Law 15, which provides for an effective date of May 9, 2025.

[8] Law 15 provides that this person may act as a claims adjuster in respect of an automobile claim determined by government regulation, or for the settlement of a claim up to the maximum amount provided for by such regulation.

[9] See in particular sections 91 and 96 of Law 15.

[10] See section 93 of Law 15.

[11] See section 135 of Law 15, which provides for the law to come into force on May 9, 2024.

[12] CCQ-1991.

[13] See in particular sections 1 and 30 of Law 15.

[14] Currently provided for in section 23 para. 2 of the Insurers Act (chapter A-32.1), see section 5 of Law 15.

[15] See section 75 of Law 15.

[16] Id.

[17] See sections 76 and 77 of Law 15.

[18] Id.

[19] See section 119 of Law 15.

[20] See section 72 of Law 15.