2019 News Archive

Council Rules Course Requirement - Applicants Must Complete Course Prior to Licensure

All individuals whose applications are received at the Council office on or after March 1, 2019, including non-residents, must complete the Council Rules Course to qualify for licensure with Council, except those that qualify for licensure under the Reactivation Provision in Council Rule 2(19). Those who apply for a licence prior to March 1, 2019, who do not qualify under the Reactivation Provision, must complete the Course prior to June 1, 2020. For more information, please refer to Council's website.

Application Fees Adjusted from $225.00 to $250.00 for Licences Issued Between March 1 and May 31

A licence year runs from June 1 to May 31. The first filing date for any licence issued on or after March 1, 2019 will be June 1, 2020. The $250.00 fee applies to any licence issued on or after March 1, 2019 and until May 31, 2019. This fee adjustment is required because a licence issued during this time period covers two licence periods and the provincial government fee Council collects is $25.00 per licence period. As our processing times typically range from 10 to 15 business days, Council recommends that applications received by Council on or after February 7, 2019 are accompanied with $250.00.

Continuing Education Reminder

Individuals who become licensed between March 1 and May 31, 2019, are required to complete two years’ worth of continuing education (CE) credits by May 31, 2020. More information about CE requirements, can be found on Council's website.

Licensing Applications - Shareholder Information

Council has updated its corporate licence application forms to request information on controlling shareholders instead of major shareholders. As not all major shareholders have voting rights, this change will enhance Council’s suitability reviews. Further information can be obtained by contacting the Licensing department at licensing@insurancecouncilofbc.com.

Sighting of Vehicle Odometers / Vehicle Identification Numbers Level 1 General Insurance Salesperson Activity

The Insurance Corporation of British Columbia has announced a new Autoplan insurance premium discount for individuals who drive their vehicles less than 5,000 km a year. In order to qualify for the discount a customer must provide acceptable proof of their vehicle odometer reading. Council has determined that it would not be contrary to the public’s interest or the spirit of Council Rules to allow Level 1 Salespersons to sight vehicle odometers and VINs outside the premises of their insurance agency provided that: 1. these activities only occur in the immediate vicinity of their insurance agency and no other insurance activities are conducted when undertaking these activities; and 2. the Level 1 salespersons remain under direct supervision as normally required under Council Rule 6.

Council Member Appointments

Council is pleased to announce the recent appointments of ten new non-voting members:

• Cindy David – Life Insurance Agent (Cindy David Financial Group Ltd. / Raymond James Financial Planning Ltd.)
• Chuck Thompson – Life Insurance Agent (C&DL Thompson Financial Services Inc.)
• Gurbinder Amar – Life Company (Foresters Life Insurance Company)
• Donna Thorne – Life Company (BMO Life Assurance Company)
• Jeny Yeung – Life Company (Industrial Alliance Insurance and Financial Services Inc.)
• Michele Carver – General Insurance Agent (BCAA Insurance Agency Ltd.)
• Shelly Maurer – General Insurance Agent (First West Insurance Services Ltd.)
• Gloria Murphy – General Insurance Agent (Murrick Insurance Services Ltd.)
• Lorraine Bullock – General Company (Wawanesa Insurance)
• Anita Gill – General Company (Westland Insurance Group Ltd.)

For more information about the members of Council, please see Council's website.

CE Credits for Council Rules Course

Effective March 1, 2019, the Council Rules Course will count for one credit instead of the previous four credits. For more information, please refer to Council's website.

Reminder to Licensees Regarding Holding Out

Council’s Code of Conduct requires that licensees hold themselves out in the manner in which they are licensed. This assists in ensuring the public knows with whom they are dealing. This means that letterhead, business cards, signage, and all forms of advertising, must accurately reflect the name(s) shown on the licence.

Licensees are also reminded that they must not present themselves to the public in such a manner as to suggest that they are a registered insurance company, rather than an agency. Section 252 (2)(i) of the Financial Institutions Act states “a person commits an offence” when they “give a false impression that the person is a trust company or an insurance company”. It is Council’s position that these requirements also extend to corporate logos and that the agency’s registered legal name or trade name should always accompany the logo.

For more information on holding out, please visit Council’s website.

Back to the Future - Past Council Notices Contain Information You Need To Know Now

Are you a life insurance agent that advertises or offers to provide financial planning, financial consulting or financial advising? If you are, did you know that Council published a notice on April 22, 2002 that outlines the qualifications and disclosure requirements for life agents who provide financial advice? Examples of qualifications include:

• CFP designation (Certified Financial Planner), offered by the Financial Planning Standards Council (FPSC) or
• R.F.P designation (Registered Financial Planner), offered by The Institute of Advanced Financial Planners (IAFP) or
• CH.F.C designation (Chartered Financial Consultant), offered by The Institute of Advanced Financial Planners (IAFP)

If an agency is involved, Council requires that the sole proprietor or the nominee meets the requirements listed in the Notice. Where the name of the agency or other form of publication would cause a member of the public to believe agency representatives are financial planners, then any licensee within the agency who does not meet the qualifications should disclose to clients that they are not qualified to conduct financial planning. For more details, see the full notice entitled Financial Planning 02-001 on Council’s website.

Annual Filing Due by June 3, 2019

Annual filing for all licences is due by June 3, 2019. This year licensees can file and pay online on Council’s website. To file online a unique PIN, emailed to all licensees with a valid email address on file, is required. If you did not receive your unique PIN please check your spam filters for an email from portal@insurancecouncilofbc.com. Please also ensure that this email address is added to your safe senders list.

We are experiencing high call and email volumes related to filing so responses to enquiries are taking longer than usual. Questions may be addressed more quickly by visiting the FAQs for annual filing or the online portal.

Credit and Debit Cards Accepted In Person at Council’s Office

Council is now able to accept Visa, Mastercard, and Interac debit cards for all Council fees if paid in person at Council’s office. Presently, only annual filing fees are able to be paid online. Online payment for other Council fees will be available in the near future. Please note that Council cannot accept credit card numbers over the phone, by mail, or by email.

New Exam Start Time – Vancouver Location

To better accommodate our examinees, commencing July 2019, we are changing the exam start time to 9:00 a.m. For more information about the LLQP exam, please visit Council’s website.

Council Rules Course Validity Period

The Council Rules Course is a pre-licensing requirement, effective March 1, 2019. The course must be taken no more than one year prior to the date of the licence application to be valid. For more information on the Council Rules Course, please visit Council’s website.

Consultation on Updated Guidance for New Life Agent Supervision Requirement

Consultation on the Updated Guidance for New Life Agent Supervision Requirement is currently underway, and Council is seeking your feedback by end of day Friday, July 5, 2019.

The updated guidance and new forms seek to address inconsistent levels of oversight of new life and/or accident and sickness insurance agents by supervisors across the industry and help these agents and their supervisors better understand their duties and obligations under Council Rules.

An email was sent on June 5, 2019, detailing the proposed updates. To view the new guidance document and forms, or more information please see notice ICN 19-003 Consultation on Updated Guidance for New Life Agent Supervision Requirement.
 

Mandatory Reporting Requirements for Licensees and Agencies

Mandatory reporting requirements under Council Rules require licensees to notify Council within five business days when:

•    the licensee or the agency has been disciplined by another regulator
•    the licensee has declared bankruptcy
•    the licensee has been charged and/or convicted of an offence
•    a judgment (legal action) has been rendered against the licensee or the agency
•    the licensee’s authority to represent an agency has changed.

Licensees must also update Council within 30 calendar days of any changes in their contact information, such as their address, phone number or email address. If you created a user account for Council's online portal during annual filing, you can use it to update your contact information at any time. If you haven't yet created an account, you can do so following these instructions.

Agencies are reminded that they must notify Council within 30 calendar days when there is a change in agency ownership.

For questions or assistance with Council’s mandatory reporting requirements, please visit our website or contact regulatoryservices@insurancecouncilofbc.com.
 

Back to the Future –  Past Council Notices Contain Information You Need to Know Now

If you are a Level 1 general insurance salesperson or a nominee of a general agency, there are several restrictions on the level 1 salesperson licence that you need to be aware of.

Council first published notice ICN 13-001 Level 1 General Insurance Salespersons - Restricted or Prohibited Activities (issued July 4, 2013) which stated that a salesperson must not:

1. Sign contracts of insurance on behalf of an insurer - This refers to any form of written evidence of a contract of insurance, with the exception of processing ICBC transactions.
2. Engage in insurance activity outside the premises of an insurance agency - Insurance activity refers to both soliciting insurance and servicing existing clients and includes doing so in person or by electronic means. (See the Notice entitled, ICN 19-001 Sighting of Vehicle Odometers/Vehicle Identification Numbers (January 2019) for the exception related to sighting vehicle odometers within the immediate vicinity of the agency.)
3. Engage in insurance activity without direct supervision - A salesperson must always be under the direct supervision of a level 2 or 3 general insurance agent when conducting insurance activities.
4. Adjust claims - There is an exemption in some instances for Level 2 and 3 agents, but this exemption does not extend to level 1 salespersons.

Further guidance was provided to agencies and nominees about the level 1 salesperson restrictions in a subsequent notice, ICN 15-004 Level 1 Salespersons Licence Restriction - Guidance for Agencies and Nominees (June 2015), indicating that Council will consider disciplinary action if these requirements are not followed.

A third notice, ICN 16-002 Restrictions and Limitations on Level 1 General Insurance Salespersons, was issued (March 2016) with exhaustive explanations to provide further clarification.

Remember: it is your responsibility to know the requirements and restrictions associated with your licence.

You can find Council Notices and other licensee resources on our website.
 

Online Annual Filing Option Proves Popular with Licensees

This year, Council offered fully integrated annual filing through its website. This option proved to be overwhelmingly popular, with nearly 70% of licensees choosing to renew their licence online. If you have not yet created an account for our online portal, we encourage you to do so in order to have access to update your contact information and prepare for filing next year. See our instructions on creating an online portal account.

Please note that all payments received prior to the filing deadline of June 3, 2019 have now been processed. If Council has not yet received your payment, the late filing fee is now in effect. For more information, please see our website.
 

New Exam Location in Surrey

Starting September 2019, Council will be piloting a new exam location at the Surrey City Centre Library—a three-minute walk from Surrey Central SkyTrain station. Additional information, such as exam dates and scheduling, can be found on our website. Exams will continue to be hosted at Council’s office.
 

Council Member Appointments

We are pleased to annouce the recent appointments of the following new non-voting members

• Harp Dhillon – Life Insurance Agent (RBC Dominion Securities)
• Glen Ewan – Lay Person
• Rhonda Spence – Lay Person 

More information about the members of Council is available on our website.

Next steps - Proposed Updated Guidance for New Life Agent Supervision Requirement

Consultation on the proposed revisions to the Guidance for New Life Agent Supervision Requirement closed July 5. Thank you to licensees who provided input on this important topic. Your feedback is being provided to the New Life Agent Supervision Task Force for review in formulating their recommendations for Council’s consideration. 
 

Back to the Future – Past Council Notices Contain Information You Need to Know Now

Minimum Notification Requirements

Challenging market conditions can sometimes mean that brokers may find it difficult to provide clients with the same coverage terms they may have had previously. In these cases, maintaining communication and managing clients’ expectations is essential.

It’s important that licensees are aware that there are minimum requirements for providing notice to clients if their insurance cannot be renewed “as is.” Council has received complaints from consumers regarding insufficient notice related to non-renewal and premium increases for insurance coverages.

Council’s Code of Conduct sets out the following requirement, and refers to a Notice on this topic:

7.3.12 Clients should be notified at least 30 days prior to the expiration of their existing insurance if you are unable to renew their insurance at the same terms and conditions.
(ICN #03-004 - Brokering in a Difficult Market)

Please note that 30 days notice is the minimum requirement and applies to both personal lines and commercial insurance products.

Licensees should familiarize themselves with the guidance provided in ICN 03-004 Brokering in a Difficult Market. Early communication with clients is the key to managing their expectations, including regarding direct bill policies. Let them know if premium increases are anticipated. Start extra early if the business may be difficult to place due to issues such as location, occupancy, loss history, or type of business. Be sure to keep your file correspondence and notes to support your contact with the named insureds and with the insurer.

You can find Council notices and other licensee resources on our website.
 

Council Appointments

At the June 2019 meeting of Council, Mrs. Lesley Maddison was elected chairperson for the 2019/2020 year. She was first appointed to Council in 2016, and has previously served as chair of Council’s Governance and Financial Audit committees.

Completing their terms on Council were past chair Mr. Ken Kukkonen and council member Mr. Michael Connors.

Final Cut-off for Filing

The final deadline for annual filing is August 6, 2019. Licensees for whom Council has not yet received an annual filing and fees by this date will have their licence terminated. Licensees who have yet to submit their filing and fees are encouraged to do so through our online portal before the deadline. Filing can also be completed in person or by mail if received before the deadline. Please note that the late fee of $200 is now in effect.

See our website for more information about annual filing.

Annual Filing Recap - Licensee Total and Non-filing Terminations

Annual Filing for 2019 has concluded. Following the final deadline for filing, 3,997 licences (3,857 individual and 140 corporate) were terminated for non-filing. At July 28, there were 34,987 individual licensees and 3,975 corporate licensees for a total of 38,962. 
 

Errors and Omissions (E&O) Licensee Requirements

All licensees are required to have E&O insurance under Council Rule 7(11). This insurance should cover all insurance activities, with at least the minimum limits specified by Council Rules.

You do not need to submit your E&O policy documents or your renewal documents to Council, but you should keep these records accessible. Council conducts E&O audits as a part of its regulatory activities, and licensees that undergo audits are required to submit their proof of E&O insurance to Council at that time.

Please see our website for more information about E&O requirements and frequently asked questions on this topic.

Council Appointments
The Insurance Council of BC is pleased to announce the following re-appointments, effective September 2019:

• Lorraine Bullock – General Company (Wawanesa Insurance)
• Michele Carver - General Insurance Agent (BCAA Insurance Agency Ltd.) 
• Cindy David – Life Insurance Agent (Cindy David Financial Group Ltd. / Raymond James Financial Planning Ltd.)
• Frank Mackleston – Lay Person

See our website for more information about the members of Council.

Annual Report for 2018/2019 Now Available

See Council’s annual report for a summary of our progress on projects and priorities impacting the regulation of insurance agents, salespeople, and adjusters. It also contains statistics and trends on audits, investigations, and discipline for the past year. You can find the  2018/2019 Annual Report on our website.

Licensing, Practice, and Compliance - Have a question? We're here to help.

Do have a question about a Council Rules requirement? Anticipating changing your license status based on a life or work event? Looking for more information on a practice-related topic?

Our Regulatory Services advisors can help answer your questions and serve as a resource for licensees. Contact us at 604-695-2008 or regulatoryservices@insurancecouncilofbc.com, or see our list of Frequently Asked Questions.

Update Your Contact Information Online
Did you know you can update your personal or corporate contact information through the Insurance Council website?

Under Council Rules, licensees are required to notify the Insurance Council of changes to business or residential contact information within 30 days. (Council Rules 7(4)(a)). To update your contact information, log in to your account on our online portal. If you don’t already have a portal account, you can create one following our instructions.

Once logged in, select 'My Account' in the grey bar on the homepage. Select 'Action' next to one of your addresses and then 'Edit' from the dropdown menu. This will take you to a screen where you can update your contact information.

More information about our online portal, including frequently asked questions, can be found here.
You can also still update your contact information by completing and sending us the Contact Change Form (for Individuals) or Contact Change Form (Corporate).
 
Upcoming Office Closure Dates
The Insurance Council office will be closed on Monday, October 14 for Thanksgiving; Friday, October 18 for staff training; and Monday, November 11 in observance of Remembrance Day.

Planning on stopping by our office? Our regular office hours are Monday to Friday, 8:30 am to 4:30 pm. Please note, our busiest times for walk-in visits are typically 12-2 pm and 4-4:30 pm, so be sure to plan your visit accordingly to avoid possible wait times.

Council Holds AGM and Strategy Session
Voting and non-voting members of Council gathered in Victoria, BC, September 8-9 for the Insurance Council of BC’s annual general meeting and strategic planning session. At the meeting, the past Chair for 2018/2019 addressed Council, followed by a report by the Executive Director on progress made to date on the strategic plan during the year as well as a financial overview.

Following a presentation on disruptive innovation and the future of the insurance industry by futurist Jim Harris, Council considered the disruptors that will impact the insurance industry and its regulation. Discussion focused on the challenges and opportunities this will create and what the future role of the regulator looks like in this context. The priorities identified during this session will inform the development of a new strategic plan to guide future Council activities.

Council Appointments
The Insurance Council of BC is pleased to announce the following appointments, effective September 2019:

• Peter Jong – Life Company (Desjardins Financial Security)
• Barbara Price – Lay Person
• Claire Wang – Lay Person
• Valerie Weston – Adjuster (Barnescraig & Associates)

See our website for more information about the members of Council.

Requirements for Supervision of New Life and A&S agents

The Insurance Council of BC has issued updated information on the supervision requirements for new life and/or accident & sickness agents. Notice ICN 19-004 Guidelines for Supervision of New Life and/or Accident & Sickness Agents refers to updated guidance provided in the Guidelines for Supervision of New Life and/or Accident & Sickness Agents, which takes effect January 1, 2020.
The guidelines include:

• Greater clarity about who can supervise, supervisor responsibilities, the period of supervision;

• A limit on the number of new agents that can be supervised by any one person;

• More information regarding exemptions to mandatory supervision;

• One updated form and two new forms.

All life and/or accident & sickness licensees are expected to be aware of and familiarize themselves with this updated guidance.

You can find ICN 19-004 and the attached guidelines in the Notices section of the Insurance Council website. Should you have questions about supervision requirements for new life and/or accident & sickness agents, please contact Regulatory Services at 604-695-2008 or toll-free at 1-877-688-0321 ext. 3, or email regulatoryservices@insurancecouncilofbc.com.
 

Updates to Online Portal – No PIN Needed, Just Log In!

Recent updates to the Insurance Council’s online portal now mean that you no longer need a PIN to create your portal account. All licensees with an email address on file with Council will now have access to the online portal, and all new licensees will be provided login information in their licence confirmation letters.

On November 7, an email was sent to all licensees with an email address on file who had not yet logged into the Insurance Council’s online portal to date, providing a username and temporary password to access the portal. Licensees are encouraged to log into the portal to 1) change the default password and security question on their account and set-up their own unique login, and 2) confirm or update their contact information on file with Council.

Go here for more information about the online portal, including an FAQ, how to reset your password, and update your contact information, or email portal@insurancecouncilofbc.com.

Council Appointments
We are pleased to announce the following re-appointments to the Insurance Council, effective December 2019:

• Gary Barker - Life Insurance Agent (PPI Solutions Inc.)

• Calvin Joe - Life Insurance Agent (Executive Planning Services Inc.)

See more information about the members of Council.

Donations of Life Insurance Policies

The Insurance Council has issued an advisory notice regarding the donation of life insurance policies: 
ICN 19-005 Donations of Life Insurance. 
In BC, a registered charity may be named as the beneficiary of a life insurance policy, however donations of life insurance policies have greater complexity and require diligent handling due to anti-trafficking provisions within the Insurance Act. Life agents should be aware of the considerations surrounding these activities in order to comply with regulatory requirements. Notice ICN 19-005 Donations of Life Insurance Policies provides guidance on this topic.
View Notice ICN 19-005 Donations of Life Insurance Policies

New Option and Fee Structure for LLQP Exam

The Harmonized Life Licence Qualification Program (LLQP) exam consists of four modules.  Currently, the cost to write up to four modules is $125. The cost to retake the exam is also $125, and allows an examinee to rewrite up to four modules.
Starting in February, the Insurance Council is introducing an option for examinees to schedule and write individual exam modules for a fee of $50 per module. Examinees will still have the option of writing up to four exam modules in one day for a fee of $125.
This change allows for greater flexibility for examinees, accommodating those who only need to write one or two exam modules. 
For more information, please contact examinations@insurancecouncilofbc.com.

Guidelines for Supervision of New Life and/or A&S Agents Effective Jan.1 

Licensees are reminded that the updated guidance on supervision requirements for new life and/or accident & sickness agents takes effect January 1, 2020, and applies to both resident and non-resident licensees.  Notice ICN 19-004 Guidelines for Supervision of New Life and/or Accident & Sickness Agents, refers to the guidance provided in the Guidelines for Supervision of New Life and/or Accident & Sickness Agents.

• Greater clarity about who can supervise, supervisor responsibilities, the period of supervision

• A limit on the number of new agents that can be supervised by any one person

• More information regarding exemptions to mandatory supervision

• One updated form and two new forms.

All life and/or accident & sickness licensees are expected to be aware of and familiarize themselves with this updated guidance. Find out more here .

Have Your Personal or Business Contact Details Changed? Update Your Info Online

Licensees are required to notify Council of changes to their contact information within 30 days under Council Rule 7(4) . The fastest and easiest way to do this is by updating your information via the Insurance Council’s online portal.

If you are logging into the portal for the first time, you can do so with your email address and your temporary password (your date of birth in MMDDYYYY format). No PIN is required. The system will then prompt you to change your password. If you previously used the portal to complete your annual filing, you would use the login information you set up at that time.

More improvements are coming to the online portal in time for annual filing – Stay tuned for updates in the coming year!
Log into Online Portal

Council Appointments

The Insurance Council of BC is pleased to announce the following re-appointments, effective December 2019:

• Tony Hayes (General Agent - Waypoint Insurance Services Inc.)

• Lesley Maddison (General Agent - Coastal Community Insurance Services (2007) Ltd.)

• Karl Krokosinski (Life Agent - Customplan Financial Advisors Inc.)

See our website for more information about the members of Council.