Requirement to Provide Reasons for Termination

Where an agency or firm withdraws a licensee's authorization to represent, the agency or firm must notify Council within 5 business days. The agency or firm is also required to notfy Council if the reasons for withdrawing the authorization relates to the individual’s suitability or conduct as a licensee.

Council’s review of the reasons for termination is an integral part of the process to determine suitability. The reasons for termination provided may disclose issues that bring into question a licensee’s suitability or conduct.

The notice of termination found on the back of a licence certificate must include an explanation for the termination. If there is not adequate room a letter can be enclosed. It is important to be clear on the reasons for termination. If the licence certificate is not available, information should be submitted in writing with confirmation the certificate is not available for return.

Terminations of licences occur for many reasons and most are not a concern for Council. Where the cause for termination brings into question a licensee’s competency, trustworthiness, financial reliability, or compliance with the Act and its Regulations, Council has an interest. Complaints relating to poor sales production, customer service, arriving late for work, or similar non-insurance related matters are not issues for Council’s consideration. In situations such as this, the notifaction may state that termination was not related to suitability or conduct as an insurance licensee.

Where there are issues that may bring into question the suitability or conduct of a licensee, then full disclosure is to be provided. Comments should be limited to what the agency or firm believe the facts to be and avoid providing personal opinions.

Reasons for termination and any follow-up information provided cannot be guaranteed to be kept confidential. If an investigation is conducted as a result of the reasons for termination, the information may be disclosed to the licensee.

In addition, under the provincial Freedom of Information and Protection of Privacy Act, licensees have the right to access any information about themselves held by Council, subject to certain exceptions.

TOP OF PAGE