TABLE OF CONTENTS. 1.1 Welcome to the Guide 1.2 Who is Required to Hold an Insurance Agent s Licence?

Transcription

1 TABLE OF CONTENTS 1. INTRODUCTION 1.1 Welcome to the Guide 1.2 Who is Required to Hold an Insurance Agent s Licence? 2. OBTAINING A LEVEL I LICENCE 2.1 Sponsorship 2.2 Duties of Sponsor 2.3 Application Form 2.4 Fees 2.5 Qualifying Examinations 2.6 Examination Equivalencies 2.7 Level I Licence Restrictions 2.8 Level I Time Limitation 3. TRANSFERRING A LEVEL I LICENCE 3.1 Responsibilities of Agent/Applicant 3.2 Responsibilities of Sponsor 4. OBTAINING A LEVEL II LICENCE 4.1 Agent Notification 4.2 Sponsor Notification Listing 4.3 Application Forms 4.4 Fees 4.5 Qualification Criteria 4.6 Exemptions 4.7 Address Changes 4.8 Holding a Level II Licence While Out of the Country 1 October 2000

2 Examination results are only valid for six months, after which time an applicant must rewrite or provide a detailed description of what he/she has done to maintain the level of knowledge tested in the examination. Accordingly, any application for licensing must be submitted with current examination results, or detailed description, otherwise it will be returned to the sponsoring company. In cases where an applicant has taken courses to maintain his/her level of knowledge, supporting documentation should also be attached. Examination results must be originals, not a photocopy. This is in order to avoid fraudulent altering of documents. 2.6 Examination Equivalencies Persons applying for a Level I agent licence may be exempt from the qualifying examination if he or she: * is a non-resident applicant, (that is, resides outside of Ontario), who has completed the same examination in any provincial or territorial jurisdiction (Note: applicants licensed in Alberta and Manitoba must take the accident & sickness examination as their licence is based only on an examination of life insurance); or * holds either a Canadian Chartered Life Underwriter (CLU) or Fellow of the Life Office Management Association (FLM1) or Quebec Assuruer-Vie-Agree (AVA) designation; or * previously held a valid Ontario life insurance agent s licence. He/she must have held the licence within two years of the date of receipt of his/her current application to FSCO for a new life agent licence; or * holds an Associate or Fellowship designation with the Insurance Institute of Canada or the (British) Chartered Insurance Institute, provided the Insurance on the Person examination or its equivalent has been passed. Proof of meeting an examination equivalency must be attached to the licence application, otherwise it will be returned. FSCO s Level I application processing and approval target time is five days from the date the application is received at the Commission. This turnaround time only applies to correctly completed, problem free applications, which are submitted with all of the required supporting documentation, correct fee payment and examination results or exam equivalency documentation. Once a licence has been issued, it is mailed to the sponsoring insurance company. A list of all licences issued and all currently licensed agents is available on the FSCO website, which can be found at Any questions regarding the status of an application should be directed to the licensing department 3 October 2000

3 at the head office of an applicant s sponsoring insurance company. 2.7 Level I Licence Restrictions The sole business of a Level I agent must be the provision of financial services. There are some restrictions which apply to both Level I and Level II agents, however, and they are specified in Regulation 663 as amended by Regulation 760/94. Some of these restrictions are listed below. Any agent found to be in violation of the restrictions listed in the Insurance Act and its regulations, may have enforcement proceedings initiated against him/her. A copy of the Regulation is found in Chapter 18. The applicant shall be deemed to be in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business if the applicant is: an officer or employee of a bank or other deposit-taking institution, a loan corporation or a finance company; a doctor or a dentist; a lawyer or an employee thereof; an accountant, auditor or trustee in bankruptcy; a police officer; a member of the clergy or a minister; a mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act; a full-time employee of the Government of Canada or any branch thereof, of any municipal or provincial government in Canada or any branch thereof, or of a Crown corporation; a person occupying office space in the office of any person referred to in this list. Anyone acting as a mortgage agent and/or mortgage sales person, or anyone conducting similar activities, is ineligible for licensing under 4(2.2)(g). If an agent carries on the main portion of his/her business in a township having a population of less than 10,000 or in any municipality of less than 5,000, then he/she is not required to abide by the sole occupation restriction. However, all other restrictions still apply. 2.8 Level I Time Limitation All licensed Level I agents must move to Level II. A Level I agent may apply for Level II status after he/she has been licensed for at least two years. The maximum time that an agent may remain at Level I is four years, after which time, his/her licence will no longer be renewed as a Level I. The agent must apply for Level II status. There are no exemptions from this requirement. The law does not provide any authority to waive the requirement or to allow exceptions. To apply to change to Level II status, the Life Insurance Agent Application is used, and is available from an agent s sponsoring insurance company. Agents who have been licensed for four years cannot reapply as new agents at Level I. It does not matter if the agent is re-entering the industry after an absence. 4 October 2000

4 Part E: Affidavit I, the undersigned, do hereby state: 1. The statements, declarations and answers to the questions in this application, including attachments, are true, correct and complete. 2. I am familiar with the laws of Ontario relating to the licensing of insurance agents and promise to abide by these laws and regulations. 3. This application is not made for the express purpose of obtaining a licence to act as life insurance agent in respect of any particular risk or risks, or merely to obtain an agent's commission for insurance on my own life or lives of my family, employer or fellow employees. 4. I will hold myself out publicly and carry on business in good faith as an insurance agent only in the name in which I am licensed. 5. I understand that any licence issued may be revoked if I have made a misstatement in this application. 6 I am legally entitled to work in Canada. 7. NOTE: Life insurance agents are required to maintain errors and omissions insurance in an amount of at least $1,000,000 in respect of any one occurrence, and at least $2 million in the aggregate, with extended coverage for loss resulting from fraudulent acts. Its deductible must be no more than $1,000. I will maintain Errors and Omissions insurance as described above, through (Either a sponsor company, LUAC Plan, or E&O insurance company). 8. As a Level I licensed agent (Check applicable statement): My sole occupation will be personally selling financial products. OR a. I carry/will carry on the main portion of my business as an insurance agent in a township having a population of less than 10,000 or in any municipality of less than 5,000. b. I carry/will carry on business as a travel agent and restrict my insurance sales activity to the sale of travel, accident and baggage insurance. c. I carry/will carry on business as a real estate broker or real estate salesperson. 9. As a licensed agent, I will not be an officer or employee of a bank or other deposit-taking institution, loan corporation or financial company, and I will not be a mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act. 10. As a licensed agent, I will not occupy office space in the office of a: bank, or other deposit-taking institution, loan corporation or financial company; mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act; doctor or dentist; lawyer or employee thereof; accountant, auditor or trustee in bankruptcy; police officer; member of the clergy or a minister; or full-time employee of the Government of Canada or any branch thereof, of any municipal or provincial government in Canada or any branch thereof or of a Crown corporation. 11. As a licensed agent, I will not be in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business (e.g. offer a discount on the sale of a financial product to a person who buys a life insurance product). 12. I will not act as a life insurance agent until a licence is issued. 13. Complete only for a renewal after February 1, I completed 30 hours of continuing education related to the technical aspects of life insurance, in the two-year period (date of expiry of current licence). Sworn before me at the (Print name of commissioner or notary public) in the (City, town, village, etc.) (Regional municipality, county, etc.) this day of, Signature of Commissioner or Notary Public (A commissioner for taking Affidavits or Notary Public) Signature of Applicant Financial Services Commission of Ontario August 2000 Ce formulaire est également disponible en français. FSCO-AA1

5 e. meet the grand-parenting option*. * only applicable until April 1, 1999 CAIFA and l AIAPQ have advised FSCO that the following l AIAPQ courses are equivalent to IFATC parts 1, 2, and 3: l AIAPQ Level I, Level II and Level III; Registered Life Underwriter; and the MQE. Completion of parts 1 & 2 of Cours de Formation Professionnelle + Planificateur Financier certificate also exempts an agent from the Level II examination. a. Level II exam An agent wishing to attempt the Level II exam, should contact the licensing department at the head office of his/her sponsoring insurer. The examination syllabus is included at the end of this chapter. FSCO accepts the Level II examination administered by CAIFA, and does not administer its own examination. Further information may be obtained by contacting CAIFA at (416) or 1(800) FSCO is not in the business of agent training and is not in a position to endorse any commercially available examination preparation program. b. 3 Part CAIFA Program The 3 part CAIFA program, consists of IFATC 101, 102 and 103. Please contact CAIFA for further details. e. Grand-parenting Option A one-time grand-parenting option is provided for agents who had an active Ontario life insurance agent s licence on February 1, 1995, and who continuously held a valid life agent s licence for ten consecutive years. This means ten consecutive complete years of holding a licence for the period ending on or before the date of application for Level II status. Periods when the agent s licence was suspended because of lack of sponsorship count, since the licence still existed even though the agent could not sell. The grand-parenting option has expired for many agents, and the period will expire for the rest by April 1, 1999, since the ten year requirement had to be met by the date of expiry of the first licence renewal after February 1, (Note the extension of licenses existing on April 1, 1995, by the payment of the fee billing does not count as a renewal and therefore, gave agents more time). An agent may apply to change his/her status once he/she has achieved this requirement. 4.6 Exemptions There is no authority under the law to grant exemptions for meeting the Level II requirement or allowing additional time to meet the Level II requirement. Everyone who wishes to remain licensed as a life insurance agent, MUST move to Level II. This is a requirement of the law. 2 October 2000

6 4.7 Address Changes It is the responsibility of a Level II agent to keep the Commission informed of his/her current mailing address. Address changes between renewal periods should be made by submitting a Life Insurance Agent Application, and ticking off the box Notice of Change in: Mailing Address, and completing Part A. 4.8 Holding a Level II Licence While Out of the Country A Level II agent is permitted to maintain and renew his/her Level II licence while he/she resides outside of Canada, providing that: he/she has an Ontario address as residence; he/she complies with the Insurance Act; he/she renews his/her licence on time; he/she completes his/her required continuing education hours; and he/she maintains the required errors & omissions insurance coverage. This provision only applies to Level II agents. 3 October 2000

7 Before a transfer can be done, the agent s existing licence must be terminated by the existing sponsor and a Notice of Termination filed with the Commission. This suspends the licence and prohibits the person from acting as an agent. After the previous licence has been terminated, the applicant s new sponsoring insurance company submits a written request to the Commission requesting transfer of the applicant s licence, and encloses a cheque in the amount of $50.00, payable to the Minister of Finance. The applicant making the transfer request must have also signed their name and dated the written request being made from the new sponsoring insurance company. An applicant may not act as an agent until the transfer licence has been issued by the Commission. FSCO will record the change in sponsorship even if the previous sponsor did not meet the requirement to file a Notice of Termination. Further details regarding terminations are found in Chapter October 2000

8 5. Examination Details There are certain instances under which an applicant may be exempt from the qualifying examination(s). They include the following circumstances: Non-Resident applicants - Those persons residing outside of Ontario, licensed by other jurisdictions with which the Superintendent of Financial Services Commission has a reciprocal agreement; Non-Resident licensees, moving to Ontario - Those persons moving to Ontario and who, with the last year, have been licensed in another province may in most cases be exam exempt if they provide acceptable evidence of licensing and exam results from another province; Anyone who has previously held a valid Ontario insurance agent's licence of the type being applied for within one year of the date of receipt of this application. Chartered Life Underwriters (CLU) - exempt from Life and Accident & Sickness exams; Associates of the Insurance Institute of Canada (AIC) - exempt from general exam and possibly life exam, depending on courses taken; Fellow of the Insurance Institute of Canada (FIIC) - exempt from general exam and possibly life exam, depending on courses taken; Ontario Mutual Insurance Association (OMIA) - exempt from general insurance exam, but must apply within 90 days of passing exam administered by OMIA; Insurance Brokers Association of Ontario (IBAO) - exempt from life and accident & sickness exams, but must apply within 90 days of passing exams administered by IBAO; Community College Insurance Courses - passing of courses at some community colleges will result in exemption from examinations - must apply within 90 days of date of graduation from community college; Appropriate proof must be enclosed with your application to verify your exemption claim, otherwise an exemption cannot be granted. 6. Years in Canada If you have been in Canada for one (1) year or less, you are required to submit the appropriate documentation to verify your status, (i.e. Minister's Permit, Work Permit, or Permanent Resident Status). If the appropriate documentation is not submitted with the application, licensing will be delayed. 7. Employment History Include all employment over the past five years, including current occupation. If you have been a student within the past 5 years please indicate these periods. If you currently are, or were, a homemaker during that time, please indicate. 8. Affiliation "Affiliation" in this case means operating under the corporate name of an insurance agency or other body. If you own or are employed by an insurance agency, you are required to provide the name of this agency, as well as the agency's sponsoring insurance company. Please note that the sponsor of your individual licence must be the same as the agency's sponsor. If you are affiliated with more than one agency, please provide the name(s) of the additional agencies and their sponsoring companies. ( ) - ii

9 CHAPTER 7 APPLICATIONS FOR LIFE AGENT LICENCES BY NON-RESIDENTS Ontario allows a non-resident to hold a licence. Agents from other jurisdictions who wish to be licensed in Ontario must meet the requirements of any other Level I or Level II agent. However, in many cases the agent will have met an examination equivalency in that other jurisdiction. In order to support a request to be allowed an examination equivalency, an applicant/agent must also provide a Certificate of Authority from the appropriate licensing body, indicating that he/she currently holds a valid insurance agent s licence in that jurisdiction, and such licence must include life and accident & sickness insurance. The applicant must also provide documentation to support that the examinations they have taken are equivalent to Ontario s. Information to be included as part of the Certificate of Authority is as follows: Agent Name Licence Number Type of Licence Held Level of Licence Sponsor, if applicable Licence Expiry Date The certificate must be signed by an authorized signing officer for the jurisdiction. U.S. Applicants In addition to a Certificate of Authority, applicants from the United States must also provide evidence to support that they have completed an equivalent exam. It should be noted that the CLU obtained in the United States is not equivalent to Canada s and cannot be used as an exemption from our exams. Quebec Applicants A letter of attestation from Quebec grants an applicant exemption from the Level I examinations. Failure to submit any of the above information, or to fully complete the application, will result in the forms being returned to the sponsor, or applicant if Level II or non-sponsored, and therefore, cause processing delays. 1 October 2000

10 Financial Services Commission of Ontario Commissionn des services financiers de l Ontario Reporting Form Regarding Life Agents Life Agent s Name Life Insurer Reporting Life Insurance Agent s Licence Number Province Date Evidence which suggest: Churning Lack of Competence Privacy Violation Coercion Licensing Violation Premium Rebating Conflict of Interest Misappropriation of Client funds Replacements Forgery Misrepresentation/Disclosure Tied Selling Fraud Misrepresentation to Company Twisting Holding out Violation Money Laundering Untrustworthiness Inducements Poor Product - Client Suitability Other Company has investigated: Yes Life Agent s contract has been terminated Contact person of Life Insurer: No Yes No Phone: ( ) For use by Financial Services Commission of Ontario: This report is submitted pursuant to the immunity provisions set out in applicable insurance regulation. Copies to: Financial Services Commission of Ontario Reporting Life Insurer Life Agent September 2000 FSCO-AA2

11 13.5 Name Changes Any agent submitting a request for a name change is required to provide the legal proof coinciding with his/her request, i.e. copy of marriage certificate etc. If the agent has requested that a new licence be printed after the name change has been processed, the request must be accompanied by a $25.00 cheque made payable to the Minister of Finance Duplicate Licenses Any agent making a request for a duplicate licence to be issued, must do so in writing, accompanied by a $25.00 cheque made payable to the Minister of Finance Certificates of Authority Regulators in other provinces may permit agents holding a valid Ontario Level I, Level II, General or Accident & Sickness, individual or corporate licence, to conduct business in those provinces without residing in that province or writing their qualifying examinations. Often, these regulators will require agents who reside in Ontario to provide a Certificate of Authority showing that they hold a valid Ontario licence. A Certificate of Authority can be obtained by writing to FSCO and enclosing a cheque for $25.00, payable to the Minister of Finance. The request should specify which licence type the certificate should cover (if they have more than one licence) and specify the address to which they would like the certificate sent. If an agent has more than one licence and requires multiple certificates, he/she must pay $25.00 per licence type, as individual certificates must be issued. If a third party is making the request for the Certificate of Authority, a letter of authorization from the agent should be included with the request, authorizing the certificate to be sent directly to the third party Listing of all Agents Anyone requesting a listing of licensed agents should make his/her inquiry to the Freedom of Information and Protection of Privacy Office of the Ministry of Finance. Further information may be obtained by calling the Freedom of Information and Protection of Privacy Office. The current contact is Ron Ward, who can be reached at (416) Please be aware that there may be a charge involved and/or approvals required in order to obtain the particular listing you may desire Website The FSCO website can be accessed at 2 October 2000

12 13.10 FSCO s Address and Telephone Number Financial Services Commission of Ontario 5160 Yonge Street Box 85 North York ON M2N 6L9 Enquiries: (416) Toll Free: 1(800) Fax: (416) Fee Listing Individual insurance agent s licence (including accident & sickness for life) $ (2 year licence) Corporate insurance agent s licence (2 year licence) Change in status to Level II licence (mid year) no charge Application for Level II licence (without currently being Level I) (2 year licence) Renewal Fee - All individual insurance agent licences (2 year licence) Renewal Fee - All corporate insurance agent licences (2 year licence) Transfer of sponsorship within licensing period Duplicate Licence Name Change Certificate of Authority October 2000

13 CHAPTER 14 WHERE IS INFORMATION AVAILABLE? 14.1 General Information Sources for Everyone C C C The licensing reference guide; Automated telephone response system which includes recorded information on commonly asked questions and can be reached at (416) or 1(800) ; FSCO website at C Fax us at (416) ; C Write us at FSCO Licensing & Enforcement Division 5160 Yonge Street Box 85, 4th Floor North York ON M2N 6L9; C C Telephone the sponsoring company; or Telephone a FSCO licensing representative - FSCO has an automated call distribution system which routes call to the first available representative Who should a Sponsored Agent call when he/she has a question or needs information? Insurance companies should be in a position to answer questions of agents they sponsor. A sponsored agent does not hold his/her licence independently of the actions of his/her sponsoring insurance company. Insurance companies have responsibilities, especially life companies under Duty of Care. This includes questions about obtaining and completing all aspects of the application forms; completion of Continuing Education requirements; renewals; Level II requirements and equivalencies; qualifying examinations; fees; status of applications; and status of licence, to name a few Who should a Non-Sponsored Agent call when he/she has a question or needs information? Non-sponsored agents enter into contractual arrangements with various insurance companies, and those insurance companies should be willing to assist a non-sponsored agent, should he/she have a question. Most of the information covered above is also applicable to non-sponsored agents, and accordingly, the Commission would expect that an insurance company would be able to assist with an inquiry. 1 October 2000

14 CHAPTER 15 COMMONLY ASKED QUESTIONS Basic Licensing Questions - See Chapters 1 and 2 Do I need a licence if I m selling life insurance over the telephone? Where do I get an application form? I m having a hard time getting an application form. How long are my exam results valid? Can I use a photocopy of the application form? Level II Questions - See Chapter 4 How do I get a Level II licence? I need information about the Level II exam. Can I get an extension to go to Level II? Can I be grand-parented? I don t meet Level II qualifications now, can I renew later? Can I hold a Level II licence while out of the country? Continuing Education Questions - See Chapter 8 What qualifies for CE credits? What is required for the CE compliance plan? I have health problems/disability - Can I get an exemption or extension for CE? I can t understand how many CE hours I need. What happens if I can t complete my CE credits? Can I carry over extra CE credits? Renewal Questions - See Chapter 9 How much does a renewal cost? My renewal application was returned as overdue. What happens now? When do I use the CD declaration form? General Questions - See Chapter 13 What are the fees? How do I get a duplicate licence? Where can I get a list of licensed agents? 1 October 2000