Apple Canada pays penalty over insurance issue

Apple Canada pays penalty over insurance issue | Insurance Business Canada

Insurance News

Apple Canada pays penalty over insurance issue

Agreement reached with Quebec regulator

Insurance News

By
Terry Gangcuangco

Apple Canada has reached an agreement with the Autorité des marchés financiers (AMF) to ensure that the AppleCare+ Plan is provided by an authorized insurer in Quebec.

The AMF’s investigation found that the accidental damage coverage in Section 3.2 of the AppleCare+ Plan qualifies as insurance since it covers risks beyond device defects or malfunctions.

Therefore, coverage needs to be offered by an insurer and distributed under the DWR (distribution without a representative) regime.

Upon learning of the AMF’s findings, Apple pledged to cooperate fully by maintaining transparency and acting in good faith. Apple began making the necessary changes to how AppleCare+ is offered and distributed in Quebec even before the agreement was finalized.

In line with the insurer requirement, Apple also agreed to pay a $175,000 administrative penalty.

Meanwhile, to protect customer rights, the AMF clarified that all existing and new AppleCare+ contracts during this transition will remain valid according to their original terms and conditions.

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