Other Business Activities and Conflict of Interest
The potential for conflict of interest should be considered as
a part of the application process for licensing as well as ongoing licensed practice.
Conflict of Interest exists when there is a risk that a licensee’s loyalty to, or representation of, a client, an insurance company, or other principal could be materially or adversely affected by a licensee’s own interests or by a licensee’s duty to another client, former client, insurance company, or other third party.
Examples of conflict of interest may arise where a licensee:
- Has a personal, private, financial, or professional interest that could prevent the licensee from being able to objectively exercise their responsibilities to a client, principal, or insurance company.
- Engages in other employment or business activity (paid or unpaid) that may include real or perceived positions of power or trust.
- Is in a position that could take advantage of a consumer’s inexperience, age, lack of sophistication, lack of education, language barrier, or ill health.
Insurance licensees are expected to abide by the
Conflict of Interest Guidelines for Insurance Agents, Adjusters, and Salespersons (Appendix A) in the Insurance Council's
Code of Conduct.
Council Rule 7(11.2), which came in to effect on July 1, 2023, prohibits licensees from engaging in insurance business for a strata corporation where there is common ownership between the licensee and a corporation, business or other entity that provides strata management services. Common ownership includes ownership arrangements involving holding companies, immediate family, and significant individuals. For more information, licensees can refer to
Notice ICN 23-001 | Conflict of Interest in Strata Insurance Business as it outlines licensees duties and obligations relating to this rule.