Intact to Assume Quebec Assurance Liabilities

Summary#

Quebec Assurance Company plans to ask the federal Minister of Finance for permission to have Intact Insurance Company assume all of QAC’s policy liabilities. The notice was published June 4, 2022; policyholders can inspect the proposed reinsurance agreement for 30 days, and objections to QAC’s planned corporate continuance must be filed by June 27, 2022.

What it does#

• QAC will apply to the Minister of Finance to be reinsured, on an assumption basis, so that Intact Insurance Company would take on all of QAC’s policy liabilities. The application to the minister will be made on or after July 5, 2022.
  • A copy of the proposed assumption reinsurance agreement is available for inspection at QAC’s head office (700 University Avenue, Suite 1500‑A, Toronto) for 30 days after publication. Policyholders can request a copy in writing from QAC at that address.
• QAC will also apply to the Minister of Finance for permission to apply under the Canada Business Corporations Act for a certificate of continuance (to continue as a corporation under the CBCA). That application will be made on or after June 27, 2022.
  • The board may withdraw that continuance application before it is acted on.
  • Anyone who objects to the proposed continuance may submit an objection to the Office of the Superintendent of Financial Institutions by email on or before June 27, 2022.

Who's affected#

• Policyholders of Quebec Assurance Company — they can inspect the proposed reinsurance agreement and request a copy.
• Intact Insurance Company, which is named as the insurer proposed to assume the liabilities.
• Insurance agents, brokers, or claimants who deal with QAC policies may notice a change in who handles claims if the arrangement goes ahead.
• The Office of the Superintendent of Financial Institutions (OSFI) is the place to send objections about the continuance.
• The notice does not specify particular types of policies or regions, so it is unclear from the source whether some policyholders would be treated differently.

Why it matters#

• If approved, the change would shift responsibility for QAC’s policy liabilities to Intact Insurance Company, which could affect who handles claims and who policyholders contact about their coverage.
• Policyholders have a limited time to read the proposed agreement and ask questions or get a copy. They also have a chance to object to QAC’s planned corporate continuance before June 27, 2022.
• This is a notice of intended applications; the changes are not final and need government approval.