Package of rule changes proposed for Ministerial approval

Published November 21, 2022

The Insurance Council has submitted a package of proposed amendments to the Council Rules to the Minister of Finance for approval following the November 1 meeting of voting members. This follows consultation with licensees and other stakeholders earlier this year in May and September 2022.

The package includes the following rule amendments initially proposed during stakeholder consultation:

• Level 3 Agent and Adjuster Qualifications - Rules 2(5), 2(8)
  Changes that would make qualification for a level 3 general insurance agent or adjuster licence based entirely on education and experience.
• Business Registration and Name Requirements - Rules 2(18)
  Changes to increase transparency for consumers by providing clarity on how licensees represent themselves to the public.
• Licence Reinstatement -  Rule 2(19)
  Changes to simplify conditions for reinstating a licence.
• Direct Supervision - Rule 6(1)(c) and 6(2)(b) 
  Removal of wording to reduce potential confusion about salesperson supervision requirements.
• Conflict of Interest  - Rule 7(11.2)
  New rule to address potential conflicts of interest between licensees and property managers related to strata corporation insurance.

It also includes revised amendments proposed in September for:

• Nominee Qualifications  Rule 2(11), 2(11.1), 2(12).
  Changes to support business continuity for agencies/firms that lose their nominee under extenuating circumstances, and to create greater awareness and consistency for nominees’ understanding of their role.  Revisions removed technicality that could allow Accident & Sickness only insurance licensees to apply to be a nominee for a life insurance agency.
• Licence Renewal  Rule 4(4)(b), (c) and (d).
  Changes to ensure that a licensee cannot continue to practice without being aware of and meeting annual licence requirements, including providing confirmation of having met annual continuing education requirements. The final rule wording submitted for ministerial approval included revisions to address stakeholder concerns about potential onerousness of reporting requirements.

Changes proposed for Life Agent Supervision Rule 10(1) to 10(12), and Rule 7(16.1), 7(16.2), 7(17.1), 7(17.2) will not be submitted at this time and will undergo further study, based on feedback received from stakeholders. 

Next steps

Should the proposed rules receive approval from the Minister of Finance, the Insurance Council will outline a plan for implementation, including advance notice and timing of effective dates. The implementation plan will consider stakeholder impacts and public protection outcomes.

More information

Updates will be provided when new information is available. For the latest news on the 2022 package of proposed rule changes, see our website.

Questions about the Rules or the Council Rules Review Initiative may be directed to Brett Thibault, Director, Governance and Stakeholder Engagement, at bthibault@insurancecouncilofbc.com.