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Rule consultation: Licence and application requirements


To establish the new restricted insurance agency licence class, licence and application requirements need to be added to the Council Rules.
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Proposed rule wording

How to read the proposed wording changes to the Rules:

Bolded text represents the addition of proposed wording.

Text that has been struck out represents wording proposed for removal.

Rule 1 | Licence classes

Rule 1 covers the various types of licences that the Insurance Council issues.


What is the proposed change?

Rule 1(1)(e) would be repealed to remove a term that defines a licence class (Restricted Travel Insurance).

Proposed Rule 1(1)(f) would be added to establish the licence classes for restricted insurance that align with the Restricted Insurance Agent Licence Regulation. Subsections i-xviii lists the regulation’s classes of persons (also known here as “types of business”) included in the new restricted insurance agent licence regime.

Rule 1(1)(e), (f): What are the impacts?

Several classes of persons (types of business) previously not requiring a licence or holding a different type of licence for the incidental sale of insurance will be included here, under Rule 1(1)(f). This establishes restricted insurance licence classes within the Insurance Council's licensing framework and enables licence requirements and conditions articulated by the rules to be applied, such as those that apply to all licensees, or are specified for these licence classes. 

In future, the Insurance Council will cease to issue restricted travel insurance agency licences and will instead issue RIA licences.
 

Rationale

The Restricted Travel Insurance licence class will be discontinued as the oversight of incidental sales of travel insurance will be brought under a single restricted licensing regime for incidental sales.

Rule 1(1)(f) will establish the licence classes for restricted insurance within the Council Rules as outlined in the Restricted Insurance Agent Licence Regulation.

see the proposed word ruling

Rule 2 | Licence qualifications

Rule 2 identifies the licensing qualifications and requirements for both businesses and individuals.


What is the proposed change?

Rule 2(10) will be repealed and replaced with proposed Rules 2(10.1) and (10.2).

Proposed Rules 2(10.1) and (10.2) would introduce the requirements for the designated representative (DR), a new role specifically created for the RIA regime.

Rule 2(10), (10.1), (10.2): What are the impacts?

Under proposed Rules 2(10.1) and (10.2) every RIA-licensed agency will need to have a designated representative (DR). That person will need to complete the DR training course to qualify for the role. On behalf of the RIA licensee, the DR will supervise the agency’s insurance activities.
 

Rationale

Rule 2(10) refers to restricted travel insurance licences and needs to be redefined.

Proposed Rules 2(10.1) and (10.2) introduce the new designated representative requirements. The DR is an individual appointed by the business and approved by Council to carry out specified duties and responsibilities on behalf of a restricted insurance agency.

Rule (2)(10.1) will require RIA licensees to appoint a DR who is either an officer, director, partner or the sole proprietor of the agency. This will help ensure that the individual filling the DR role is likely to have longevity and a vested interest in the agency’s compliance.

Rule 2(10.2) will require the DR to complete training which will be tailored to the RIA licensing regime. This training will clarify the expectations of the DR and include information about Council Rules. It will support a consistent standard across all classes of RIA licence holder. This requirement is consistent with other classes of insurance licence.

The Insurance Council’s experience with established licence classes shows licensing compliance is most successful when there are mandatory requirements and education for an individual with a vested interest in the success of the agency.

see the proposed rule wording

Rule 3 | Licence applications

Rule 3 addresses licence applications and applicant suitability for an insurance class.


What is the proposed change?

Proposed amendments to Rule 3(2)(d)(iii) would include the professional bodies of occupations beyond regulatory bodies and the financial services sector.

Proposed Rule 3(2)(f) would require businesses applying for an RIA licence to be duly licensed with their primary regulator.


Rule 3(2)(d)(iii) and 3(2)(f): What are the impacts?

The proposed changes to Rule 3 ensure the Insurance Council is adequately contemplating any discipline that applicants or licensees have faced from other regulatory, professional and occupational bodies, past or present.

Where applicable, an RIA applicant will need to be licensed with the professional body of their ordinary business, otherwise they cannot hold an RIA licence with the Insurance Council.

Example:

  • A funeral director cannot hold an RIA licence if they are not licensed with Consumer Protection BC.

Rationale

Rule 3(2)(d)(iii) will clarify language to include any type of discipline within an occupational field. Applicants must disclose if they have been refused a licence or disciplined by any financial services regulator or professional or occupational body for any reason that may reflect on their suitability to hold a licence.

In Rule 3(2)(d), the Insurance Council is using broader, more inclusive language. This change acknowledges that many businesses are not financial or professional services providers.

To expand the scope of what an applicant must disclose at the time of application, the Insurance Council is broadening the terminology by replacing the language of “been refused, suspended, or cancelled” to now read “been disciplined by.” Using the terms financial services “regulator” and “professional or occupational body” instead of “financial services or professional field” includes applicants whose primary business is not related to the financial services sector.

Rule 3(2)(f) is a suitability requirement for new applicants and aligns with current Insurance Council practices and guidelines.

The Insurance Council understands protecting the public and increasing consumer confidence extends beyond insurance licensure. The Insurance Council requires that businesses be compliant with the licensing requirements for their ordinary business to be suitable to hold an RIA licence.

see the proposed rule wording

Rule 7 | Licence conditions

Rule 7 outlines the requirements a business or individual must satisfy to hold an insurance licence.


What is the proposed change?

Proposed Rule 7(20)(a) would establish a requirement for RIA licensees to have written authorization to represent a BC insurer.

Rule 7(20)(a): What are the impacts?

RIA licence applicants will require written authorization from a BC insurer to sell the insurance products they are offering incidentally to their ordinary business.

RIA applicants selling more than one type of insurance incidental to their ordinary business will need at least one authorization per class of insurance they wish to sell.

Example:

  • A construction equipment dealership selling excavators also offers insurance as an add-on. Based on its business type, it is eligible to sell three different classes of insurance. Depending on which products it offers, this business could need as many as three authorizations:

    • Credit Protection Insurance: Offered at the point of equipment financing or lease, typically as an add-on to protect payments in the event of borrower hardship.
    • Construction Equipment Warranty Insurance: Extended warranties are offered at the sale of new or used equipment to cover mechanical breakdown after the manufacturer’s warranty expires.
    • Guaranteed Asset Protection (GAP) Insurance: Presented during financing; covers the difference between insurance payout and loan balance if equipment is stolen or written off.

Here is an excerpt from the proposed list of affected business and their possible classes of insurance:

 

Type of business ("classes of persons") Classes of insurance
Construction equipment dealerships
  • Credit protection insurance
  • Construction equipment warranty insurance
  • Guaranteed asset protection insurance
 
Rationale

Rule 7(20)(a) will ensure that an RIA licensee is authorized to sell insurance on behalf of an authorized insurer and that they are not acting as the insurer.

This Rule is a consumer protection measure ensuring customers are protected from unauthorized or fraudulent sales. Authorization from an insurer confirms that the licensee is approved to represent that insurer, understands its underwriting rules and sells legitimate insurance products.

This Rule is consistent with requirements for general insurance agency licences in BC.

see the proposed rule wording

How to provide your feedback

Consultation on proposed changes will begin on February 10, 2026, and will close on April 27, 2026 (3pm PT). You can provide your input through either of the options listed below:
Feedback form             Send email
 

All feedback about the new and proposed rule changes will be considered by the Insurance Council at the close of consultation. In addition to the feedback form results, submissions that include verifiable contact information (name, email, business) will be provided to the Minister of Finance for consideration.

As a public body, the Insurance Council of BC is subject to the Freedom of Information and Protection of Privacy Act (FIPPA) and other provincial and federal privacy regulation.
 

Contact us

 

​For questions about the proposed Rule changes or stakeholder engagement please contact us at: rules.consult@insurancecouncilofbc.com

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