Rule 4 | Licence period

Rule 4 defines the duration and renewal requirements for licensure.

What is the proposed change?

The addition of Rule 4(4)(b.2)(i), (ii), (iii) proposes the annual renewal requirements unique to restricted licensees.

The proposed amendments to Rule 4(4)(c) and (d) would broaden the annual confirmation requirements to include all types of confirmations versus limiting them to continuing education and Errors and Omissions insurance.
 

Rule 4(4)(b.2)(i), (ii), (iii), (c), and (d): What are the impacts?

Under Rule 4(4)(b.2)(i), (ii), (iii), to renew their RIA licence, licensees will need to confirm annually:

• their designated representative’s (DR) name and contact information.
• the number of representatives selling insurance (this number is what annual licence fees are based on).
• that the business is still the same type of business reflected on their RIA licence and they are only selling the class or classes of insurance reflected on their licence.

Under Rule 4(4)(c), RIA licensees will be subject to a late fee if the licence fee(s) or annual confirmation is submitted past the deadline.

Under Rule 4(4)(d), RIA licences will be subject to automatic cancellation if the licence fee(s) or annual confirmation is not submitted within 60 days of the deadline.
 

Rationale

Under Rule 4(4)(b.2)(i), (ii), (iii), an annual update with the Insurance Council will ensure that they are correctly licensed under the RIA regime. The Insurance Council seeks to keep accurate and up-to-date information about licensees and the type(s) of insurance they are selling.

RIA licensees will need to provide an annual confirmation of the status of their DR, number of insurance sellers and the nature of their business to ensure their RIA licence remains active.

Rule 4(4)(c) will update language to incorporate the RIA licensing regime into the annual renewal process. This language makes clear to licensees the impact of neglecting to provide annual renewal information to Council. This Rule applies to all licensees, not just RIA licensees.

Currently, the provisions for licence cancellation or late fees are tied to requirements specific to licence classes. This change broadens the language to include provisions for the new RIA licence regime, specifically annual confirmation of the status of their DR, number of insurance sellers and the nature of their business.

Rule 4(4)(d) will update language to include RIA licence provisions. This Rule creates consistency across all licence types, including RIA licences.

see the proposed word ruling

Rule 7(19): What are the impacts?

This condition refers to a class of licence that is being discontinued and will no longer be applicable. See Rule 9.
 

Rationale

Rule 7(19) will be repealed as it was originally intended for restricted travel insurance licences.

see the proposed word ruling

Rule 7(21): What are the impacts?

Under an RIA licence, all sales representatives will need to be trained in the insurance products the licensee is offering its consumers. The designated representative ensures that sales staff have completed Insurance Council-approved training. If any salespeople leave the business for more than two years, they must retake the training to resume selling insurance.
 

Rationale

The RIA licence program will create and support consistent standards for the incidental sales of insurance, and the Insurance Council wants to ensure that sales representatives have the appropriate level of knowledge and competency to sell insurance. Rules 7(21)(a) and (b) address the educational component for RIA representatives.

Rule 7(21)(a) will require RIA licensees ensure their representatives complete the applicable Council-approved training before engaging in insurance activities. Approval of training courses will be facilitated through the RIA Accreditation Program to ensure course content aligns with the required knowledge and skills outlined by the performance requirements for the RIA licence.

Rule 7(21)(b) will address training currency and makes clear that if a representative leaves the business for two or more years, they must recomplete the applicable training prior to selling insurance again.

see the proposed word ruling

Rule 7(22): What are the impacts?

RIA licensees will need to follow defined procedures when they cease to have a designated representative (DR).

Restricted licensees must notify the Insurance Council within 30 calendar days of not having a DR.

An RIA licence will be automatically suspended if the licensee is without a DR for longer than 60 days.

Rule 7(22)(c) provides for the automatic reinstatement of a licence that is suspended if the agency has a Council-approved DR designated within 120 calendar days of not having a DR, otherwise the licence is cancelled.
 

Rationale

On behalf of the RIA licensee, the designated representative is responsible for practice oversight, leads compliance and ensures consistency. Due to the importance of this role, every RIA licensee is required to have an active DR. Requiring oversight of insurance activities is a provision consistent with requirements for other classes of insurance licence and is an important measure to ensure consumer protection.

Rule 7(22) will allow the RIA licensee defined periods of time to have a new DR in place and  provides for business continuity.

see the proposed word ruling

Rule 7(23): What are the impacts?

RIA licensees will need to follow defined procedures when they cease to have a designated representative (DR).

Restricted licensees must notify the Insurance Council within 30 calendar days of not having a DR.
If an RIA licensee is no longer licensed or registered with the professional body for their ordinary business, they must immediately stop conducting any insurance business and notify the Insurance Council within 60 calendar days.

An RIA licence will be automatically suspended if the licensee does not become licensed or registered with the regulator of their ordinary business within 60 calendar days of losing status.

A suspended RIA licence will be automatically reinstated if the licensee becomes licensed or registered with the regulator of their ordinary business within 120 calendar days, otherwise their licence will be cancelled.
 

Rationale

The Insurance Council works in cooperation with other regulatory and professional bodies. The provisions in this Rule recognize that if a business is no longer licensed or registered with the regulator of their ordinary business, this may signal broader compliance concerns that warrant intervention.

The Insurance Council has drafted language that clarifies the process for reinstatement, balancing consumer protection with clear actions for agencies on how to remedy their status.

see the proposed word ruling

Rule 7(24): What are the impacts?

Rule 7(24) will establish the role of the designated representative (DR). The DR has three distinct duties:

• Serve as the primary contact with the Insurance Council
• Oversee insurance activities
• Ensure compliance with regulatory obligations of the RIA licence

The business or agency holds the RIA licence, but the designated representative (DR) is responsible for ensuring the business remains compliant with its licensing requirements.

Rationale

The Insurance Council intends to introduce a clear and proactive monitoring structure for DR and sales representative conduct.

By defining the designated representative’s responsibilities in the Council Rules, the DR’s duties and expected behaviour are clear.

see the proposed word ruling

Rule 7(25): What are the impacts?

Proposed Rule 7(25) will establish the RIA licence program’s requirement for specific written disclosures for consumers. The designated representative and sales representatives are expected to be knowledgeable and transparent when offering consumers insurance products relating to the licensee’s ordinary business.

Rationale

Rule 7(25) specifies the information that must be disclosed in writing to clients, enabling them to make well-informed decisions. Rule 7(25) is intended to protect the public and provide clarity regarding coverage information, consumer rights and who is providing the insurance coverage.

This Rule is in alignment with the requirements of other jurisdictions with restricted regimes.

see the proposed word ruling