Licensees may be asked to place a client’s insurance business with an insurer who is not authorized to conduct business in British Columbia when the necessary coverage is not available from an authorized insurance company or if coverage from an authorized insurer did not meet the client’s specific insurance needs. However, before conducting business with an unauthorized insurer, licensees have specific requirements under Insurance Council Rules, the Financial Institutions Act
and the Insurer Exemption Regulation.
Among other requirements, licensees are required to notify the Insurance Council in writing that they intend to rely on section 76(1)(c) of the Act
prior to completing a transaction with an unauthorized insurer. Licensees who are involved with the placement of insurance with unauthorized insurers are also required to file with the Superintendent of Financial Institutions (Superintendent) a Placement of Insurance with Unauthorized Insurers Return (BCFSA Return) within 30 days at the end of each quarter. Notice ICN 21-001 Use of Unauthorized Insurers
outlines regulatory requirements for licensees placing business with an unauthorized insurer.
Written notification can be emailed to firstname.lastname@example.org