New Business Checklist

Transcription

1 New Business Checklist Ensure New Business application is fully completed and legible. (ie. All required questions answered; provide additional information for questions answered yes. ) *Note that any MA that does not hold a valid insurance license, you cannot complete this information on applications. Ensure all documents are signed, witnessed and dated. All signatures, corporate signatures are obtained. Note: Witness must be a disinterested third party (not related to the insured) If paramedical is required, complete family medical history and doctor s name & contact information etc. *Note that any MA can find this information, however if you do not hold a valid insurance license, you cannot complete this information on the application, Agent s responsibility. If applying for Temporary Insurance * ensure all questions are answered no, * cheque & application must be dated the same, * leave Temporary Insurance Certificate with the client. Unless all these conditions are met the client is not covered. The advisor can be held liable here. Complete Life Insurance Replacement Declaration (LIRD) /Replacement forms and leave copies with the client and or/ submit to appropriate insurance company within 3-5 days of the signing of the new application. LIRD form must be filled out and in addition a life agent must provide a separate, written explanation of the advantages and disadvantages of replacing the policy. The written explanation must address the client s specific needs and must be clear, comprehensive and easily understood. It depends on the province, but for Ontario, Newfoundland and Manitoba the LIRD form is required along with a written analysis, signed by the client, and copies must be sent in to the new insurer and existing insurer. In Quebec, there have been no changes to the regulations. They continue to accept only the prior notice of Replacement form. It is optional in Nunavut, Yukon and the Territories, the LIRD is recommended to be completed. * This is a compliance issue as this is how Agent s sales practices are monitored. If an audit is conducted on an agent, his contract can be withdrawn. Ex. Churning One carrier to another in order to generate new commissions If application includes a child rider, provide all requested information regarding the children to be insured. An illustration ensures a correct policy contract * This is a compliance issue as we want to ensure clients have the correct coverage purchased. Signed illustrations is a client s acknowledgement of what was purchased

2 Initial premium cheque must be dated the same date as application/ delivery receipt and or continuation of insurability form * This is to ensure that the correct coverage is given at the correct time (Money orders/ or bank drafts and non-personalized cheques, are becoming more of a problem because of Money Laundering situations. Many carriers are refusing to accept them) Advisor s Report must be completed and signed *Ensure the advisor is licensed in the province the client is signing the application in. * If the application is signed by Agent and client in two different provinces, in this instance an agent can conduct business over the telephone to a client. He must document his conversation and indicate in that documentation that he is forwarding applications via mail for signature, there should be a notation made that indicates the agent was not present for the signing of the application. The client must have them witnessed at their location and it must not be witnessed by a beneficiary. Leave the Medical Information Bureau certificate with client. Identify the client and verify the client s identity using reliable, independent source documents, date or information. View the original valid acceptable identification such as government issued photos (Driver s license) * or be sure your agent has done this as this is part of the Money Laundering rules (3 rd party identification) Preferred validation for individuals is the use of government-issued photo ID. The following original, valid government-issued IDs can also be used: birth certificate driver's licence passport old age security card a certificate of Indian status Provincial Health card except in Ontario, Manitoba, Prince Edward Island or Quebec. To verify the identity of corporate clients, the following information is required: certificate of incumbency /Incorporation director/shareholder resolutions or other documents that confirm the signing authority Determine whether the client is acting on behalf of another person and take reasonable steps to obtain sufficient identification data to ascertain the identity of that other person. * again Money Laundering rules Identify the beneficial owner of the application, and take reasonable measures to ensure their interest. * Make sure the beneficiary has insurable interest in the policy

3 Copy of Needs Analysis All sales must have a needs analysis completed. Barrington will be enforcing this via Virtgate and audits. Acceptable Forms of a Needs Analysis Can be the FPS, Naviplan, Insure Right or the simple Needs Analysis tool in Virtgate. Client information ( ie. Copy of application or Policy can only be kept in the file as long as a privacy and consent has been signed by client. Barrington s Privacy Statement ensures that we can have access to this information as well for Virtgate database. All offices should be using Barrington s Privacy Statement or incorporating our company info and logo into your office privacy statement.

4 Fintrac and Money Laundering Checklist : The following are examples of what might be considered a suspicious transaction, or suspicious behavior; Client attempts to purchase investments with cash Payments made by way of third party cheque are payable to, or endorsed over to, the client. Transactions in which clients make settlements with cheque drawn by or remittances from, third parties. Client does not want correspondence sent to home address. Client appears to have accounts with several financial institutions in one area for no apparent reason. Client s home or business telephone number has been disconnected or there is no such number when an attempt is made to contact client shortly after opening account. Client appears to have recently established a series of new relationships with different financial entities Transaction involves a suspected shell entity (that is, a corporation that has no assets, operations or other reason to exist). * Non-profit companies with very little to no employees and no office locations etc. Client proposes to purchase an insurance product using a cheque drawn on an account other than his or her personal account Involvement of one or more third parties in paying the premiums or in any other matters involving the policy. Funds used to pay policy premiums or deposits originate from different sources Client cancels investment or insurance soon after purchase. Repeated and unexplained changes in beneficiary. Relationship between the policy holder and the beneficiary is not clearly established Client presents unaccounted for funds for a large transaction.

5 Client conducts a transaction for an amount that is unusual compared to amounts of past transactions. Transaction seems to be inconsistent with the client s apparent financial standing or usual pattern of activities. Client produces seemingly false identification or identification that appears to be counterfeited, altered or inaccurate. Client refuses to produce personal identification documents. Client only submits copies of personal identification documents All identification presented is foreign or cannot be checked for some reason. All identification documents presented appear new or have recent issue dates Unexplained transfers between the client s products and accounts. Large transfers from one account to other accounts that appear to be pooling money from different sources. Client has no employment history but makes frequent large transactions or maintains a large account balance. The flow of income through the account does not match what was expected based on stated occupation of the account holder or intended use of the account. Client frequently makes deposits to the account of another individual who is not an employer or family member

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