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Licensee Responsibilities
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More for Life
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Life Insurance Requirement to Represent an Insurance Company A life insurance agent must have written authorization to represent at least one insurer authorized
to do life 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. Should an agency’s licence be suspended, the authority of all of its licensed representatives is also suspended. Errors & Omissions Insurance All licensees must be covered under an E&O insurance policy with a minimum limit of $1 million per claim and a minimum aggregate limit of $2 million. Replacement Agents replacing existing insurance must abide by
the Replacement Regulation and ensure the replacement is genuinely beneficial
to the interests of the insured. Where replacement could be detrimental
to the interests of an insured, an agent must make every reasonable effort
to maintain the existing policy in force.
This Regulation is intended to ensure the client receives full disclosure
of the details, including the advantages and disadvantages of both policies,
to allow an informed decision on whether to replace existing insurance.
A replacement occurs when, as a result of the purchase of a life insurance policy, any existing life insurance contracts are:
The Replacement Regulation applies when the policy to be replaced is a:
*A temporary or “interim” contract exists where a client has applied for insurance with and paid money to an insurer. Agents replacing such a contract must comply with the Replacement Regulation. The Replacement Regulation does not apply when:
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