Temporary rule change extends lifting of Level 1 salesperson location restriction
Published September 17, 2021
Following the Insurance Council’s request, the Minister of Finance has approved an additional urgent temporary rule change to Rule 6(1)(b) as of September 20, 2021. This effectively extends the rule change first brought into force in March 2020 allowing eligible level 1 general insurance salespersons to work outside an agency office.
The amended rule will remain in place for 275 days, or until it is rescinded. Notice ICN 20-002, Temporary Suspension of Level 1 Salesperson Location Restriction - Rule 6(1)(b), v.3 provides important details regarding the regulatory requirements to be followed. These are the same requirements applicable to the initial temporary rule change in March 2020.
Under the amended Rule 6(1)(b), level 1 salespersons who have taken the Council Rules Course and who have a minimum of six months' licensed Level 1 experience in the preceding nine months, are permitted to work outside of an agency office, within the limitations and procedures set for them by the agency nominee.
All other level 1 salesperson restrictions will remain in place.
Nominees of agencies remain accountable for the activities of these salespersons and are expected to provide sufficient oversight for public protection.
Notice ICN 20-002 Temporary Suspension of Level 1 Salesperson Location Restriction - Rule 6(1)(b) v.3 is available in the Notices section of our website.
A second round of consultation with licensees and other stakeholders on a permanent change to Rule 6(1)(b) concluded in August 2021. At their September meeting, Council’s voting members considered input from consultation and decided to proceed with the submission of the proposed amendment for ministerial approval. As a result, the Insurance Council will be preparing a request to the Minister of Finance for a permanent change to Rule 6(1)(b) that will remove the location restriction in its entirety, as well as developing guidance materials needed to support licensee practice, if approval is received.