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General Insurance

Insurance Company Representation

A general insurance agent must have written authorization to represent at least one insurer authorized to do general insurance business in B.C. Where the agent no longer has such authorization for a period exceeding 21 calendar days, the licence is automatically suspended and the agent is required to notify Council within 5 business days of the suspension.

Sub-Brokering

In a sub-brokered transaction, both brokers have responsibilities to the client, and the insurer and to ensure that all aspects of the insurance transaction are conducted properly. While both brokers equally share this responsibility, each broker has primary responsibilities. Both brokers must be licensed and satisfy themselves that the other broker is properly licensed. All brokers must satisfy themselves that the other broker is capable of fulfilling his or her obligations.

General Insurance Agency Supervision

Every general insurance nominee and general insurance agency must ensure that all insurance activities are actively supervised by a licensed level 3 general insurance agent. Each agency is different in its make-up of licensees, hours of operation, and nature of business and therefore it is the responsibility of the nominee to determine the appropriate level of supervision. Some offices by size, nature of the business conducted, and experience of licensees require more than one level 3 supervisor. Others, based on the same factors, may not need a level 3 in attendance during all hours of operation.

When determining the appropriate level of supervision, a number of factors are expected to be considered including:the number of level 3 and level 2 agents in the office; the number of level 1 salespersons operating from the office; the experience and qualifications of the licensees; the nature of the business conducted; and the hours of operation.

While regular attendance is one aspect of supervision, it is not the only one. Should Council inquire, nominees and supervisors will be required to clearly demonstrate the appropriateness of the supervision provided and they will be held accountable for their decisions.

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