What is the proposed change?
Revisions to wording for Rule 2(19) aim to simplify the criteria of the current Reactivation Provision. Based on the new wording, a former licensee would be able to reinstate their licence without the need to repeat education prerequisites for that licence provided they are applying within two years of licence cancellation.
The wording also retitles “Reactivation Provision” as “Reinstatement Provision,” to better reflect its purpose and align it with the term used in the Financial Institutions Act.
What is the rationale?
In situations where a licensee leaves the industry for a short period of time or inadvertently misses their annual licence renewal and has their licence cancelled, it’s important to have a mechanism where they can regain their licence without having to go through the entire licence application process from the start. This is the purpose of the Reactivation Provision set out in Rule 2(19).
However, the current wording of Rule 2(19) is complex and can be confusing for licensees to understand if they meet the criteria.
Presently, the rule states that a former licensee whose licence has been cancelled within the last two years can apply to reinstate that licence without repeating educational prerequisites if they meet certain criteria. If the former licensee is applying for licence reinstatement within one year of cancellation, they must have held that licence for one year prior to the cancellation and been actively conducting insurance business during that time. If a former licensee is applying for licence reinstatement within two years of cancellation, they must have held that licence for the preceding two years and been actively conducting insurance business, or held that licence for five of the seven years prior to licence cancellation.
Simplifying the criteria wording to state that a former licensee can reapply for reinstatement “within two years of the date the applicant ceased to be licensed” makes the rule less complex and easier to understand. It would also align with practices in Alberta, Saskatchewan and Ontario.