About the Proposed Rule Amendments
The information below describes the rule amendments as originally proposed during the March 28-June 1 consultation. (Published March 28, 2022)
What is the proposed change?
This change expands on wording in Rule 4(4)(b) regarding licence renewal, which states that a licensee must submit “supporting documentation” as a part of the process. The addition of 4(4)(b.1) specifies that licensees must “submit annual proof of having met their continuing education (CE) requirements and annual confirmation of having met their errors and omissions (E&O) insurance requirements, in the form required by Council.” This annual proof of CE completion would consist of a log or a list of completed CE courses provided to the Insurance Council through online means
(See proposed changes - “What’s changed and why”). The process for providing confirmation of E&O insurance through completing a declaration during the annual licence renewal process would remain unchanged.
The change to Rule 4(4)(c) and (d) clarifies that the late fee for annual licence renewal applies to the entire licence renewal process, not just the payment of the fee.
The change to Rule 4(4)(d) also replaces the word “terminated” with “cancelled” in reference to licensure, which is aligned with the language in the
Financial Institutions Act.
What is the rationale?
The existing Rule 4(4)(b)’s requirement for “supporting documentation” to be submitted for annual licence renewal lacks transparency regarding what type of documentation the Insurance Council requires licensees to submit to renew their licences on an annual basis. These proposed changes and additions provide more clarity.
Furthermore, under the Council Rules, licensees are required to complete CE and carry E&O insurance; however, on an annual basis, the Insurance Council finds that licensees often inadvertently breach Council Rules due to a lack of understanding about the requirements. Typically, these licensees are found to have an insufficient amount of CE credits for one or more years, and in some cases also do not have E&O insurance in place. Thus, can result in the licensee having to undergo the disciplinary process.
The requirements to carry E&O insurance and maintain professional competence by completing annual CE are in place to protect consumers. Requiring that licensees demonstrate that they have met the CE requirements as a part of licence renewal, benefits both public protection and licensees as it will reduce the number of licensees who inadvertently breach the rules due to a lack of awareness or understanding of these requirements. Licensees would not be able to continue to hold a licence without meeting these requirements.