18 January 2018 11:15
The representatives of Promutuel who have spoken to the minister : Sylvain Fauchon, Jean-Denis Morin, Simon Girard, and France Beaudry | Photo : Denis Méthot
The Groupe Promutuel supports the project of 141 in its main orientations. The insurer, however, has a fear compared to some of its provisions.
According to Promutuel, of the provisions of bill 141 would have the effect of submitting the application of the Act business corporations act (QBCA) to mutual insurance companies. These provisions would be incompatible with the nature and the unique character of Promutuel. The mutual wants to avoid that distorted the mutual model by subjecting it to corporate laws.
«While the current Act on insurance (LAQ) devotes a separate section to the provisions governing the democratic life and governance of mutual companies, the bill 141 would rather provide such a framework by the application of the Law on corporations, corporate law, mutual companies «, summarized Simon Girard, vice-president, corporate affairs and governance, at Promutuel.
Open to multiple interpretations
The application of this Act will make the legislative framework of the Groupe Promutuel complex and ambiguous, and give an opening to multiple interpretations, added Mr. Girard. «This application will only increase the democratic life of mutual companies without real benefit for our insured members,» he said.
Simon Girard | Photo : Denis Méthot
Therefore, Promutuel recommends that you continue to treat the mutual in a separate section of the draft revised text of the insurance Act, while incorporating the provisions of the QBCA, which should be applied to them. She also asks that the private Law continues to prevail, and that the reinsurer is not subject to the provisions of the QBCA as would the other distinct companies.
The intervention of Promutuel with regard to bill 141 has been so technical as to allow the elected officials to find his written submission, starting with a lexicon of a page. Even members exposed since the beginning of the process to the ins and outs of a large bill seemed to lose their latin, was able to see the Log of the insurance.
An economic force majeure
Promutuel is a strong economic force in the regions in Quebec. It has 1 925 employees that serve more than 640,000 members and clients with a premium volume of nearly $ 800 million and assets of $ 1.4 billion. Promutuel is the one group mutual fund in the province governed by the provisions of the insurance Act relating to mutual insurance companies.
Promutuel currently includes 17 mutual insurance companies, a reinsurer governed by private Law, a guarantee fund and an investment fund that manages the money entrusted to him by the mutual insurance companies for purposes of investment.
Promutuel contributes to the maintenance of the status quo, that is to say, to provide for the institutional framework of the governance of mutual companies within the provisions of the LAQP applicable to mutual companies.
Listen to the ministry of Finance
The concerns and requests of Promutuel have already found a sympathetic ear with the ministry of Finance. Already, the group has had the opportunity on several occasions to formulate its observations with the office of the minister Carlos J. Leitão, who asked him to identify the provisions of the QBCA, which should not apply to mutual Companies. A new meeting is planned in the coming days between representatives of Promutuel and those of the ministry of Finance.