O.C. 577/2002

A.R. 293/2002

December 4, 2002

   

    A P P E N D I X

    Insurance Act

    INSURANCE AGENTS AND ADJUSTERS

    AMENDMENT REGULATION

1   The Insurance Agents and Adjusters Regulation (AR 122/2001) is amended by this Regulation.

2   Section 9 is amended

    (a) by adding the following after subsection (5):

        (5.1)  If, during the 36-month period following the issuance of a level 1 general insurance agent's certificate of authority,

        (a) the certificate is cancelled, revoked or suspended, and

        (b) subsequently the person who holds the certificate of authority applies for the reinstatement of the certificate under subsection (8),

        the 36-month period referred to in subsection (5) is not extended by the length of time the certificate was cancelled, revoked or suspended.

    (b) by adding the following after subsection (7):

        (7.1)  Where a level 1 general insurance agent's certificate of authority is cancelled under subsection (5) and the individual who held the certificate of authority applies for a new certificate of authority, the individual must meet the qualifications set out in subsection (2)(b) for a level 2 general insurance agent's certificate of authority.

3   Section 22 is amended

    (a) in subsection (3)(a) by adding "C-15 (Loss Adjustment and Claims Settlements) or" after "must be";

    (b) by repealing subsection (5)(b) and substituting the following:

        (b) has completed

            (i) the C-32 (Bodily Injury Claims) course of the Insurance Institute of Canada, and

            (ii) either the C-46 (Claims 2) or the C-41 (Property Loss Adjustment) courses of the Insurance Institute of Canada,

          and

    (c) in subsection (5)(c) by striking out "consecutive".

4   Section 27 is amended by adding the following after clause (c):

    (d) recreational, marine, farm implement and construction equipment dealers.

5   Section 29 is amended

    (a) in subsection (2) by adding "of authority" after "for a certificate";

    (b) in subsection (3) by adding "of authority" after "for a certificate".

6   Section 30 is repealed and the following is substituted:

Continuing education requirements

 

        30(1)  An individual or a sole proprietor who holds

                  (a) a life insurance agent's certificate of authority, or

                  (b) an accident and sickness insurance agent's certificate of authority

        must complete in the 2-year period commencing on February 16, 2002 at least 15 hours of the continuing education courses approved under section 29 with respect to the certificate of authority.

        (2)  An individual or a sole proprietor who holds a general insurance agent's certificate of authority must complete in the period commencing on February 16, 2002 and ending on October 31, 2003 at least 15 hours of the continuing education courses approved under section 29 with respect to that certificate of authority.

        (3)  After October 31, 2003, a person referred to in subsection (2) must complete at least 15 hours of the courses referred to in subsection (2) in each certificate term.

        (4)  After February 15, 2004, a person referred to in subsection (1) must complete at least 15 hours of the courses referred to in subsection (1) in each certificate term.

        (5)  Subsection (2) does not apply to an individual or sole proprietor who holds an insurance agent's certificate of authority limited to hail insurance or livestock insurance.

        (6)  An individual or a sole proprietor who holds an adjuster's level 1, 2 or 3 certificate of authority must complete in the 2-year period commencing on June 1, 2002 at least 15 hours of the continuing education courses approved under section 29 with respect to the adjuster's certificate of authority.

        (7)  After May 31, 2004, the person referred to in subsection (6) must complete at least 15 hours of the courses referred to in subsection (6) in each certificate term.

        (8)  Subsections (1), (2), (4), (5) and (6) do not apply to a non-resident individual or sole proprietor who holds a certificate of authority to operate in Alberta if the individual or sole proprietor is a resident of and is registered in another jurisdiction that has a continuing education requirement satisfactory to the Minister.

        (9)  Notwithstanding anything in this section, where an individual or sole proprietor applies for and obtains a new certificate of authority

                  (a) in the 3 months preceding the expiry date for that certificate, the individual or sole proprietor need not complete the continuing education required under this section for the certificate term, or

                  (b) when there is more than 3 months remaining before the expiry date for that certificate, the individual or sole proprietor must complete the number of hours of continuing education calculated in accordance with the following formula:

          A x C

          B

          where

        A is the number of months remaining in the certificate term;

        B is 12 months;

        C is 15 hours.

        (10)  Subsection (9) takes effect

                  (a) on February 16, 2003 for holders of life insurance agents' certificates of authority,

                  (b) on June 1, 2003 for holders of adjusters' level 1, 2 or 3 certificates of authority, and

                  (c) on February 16, 2003 for holders of general insurance agents' certificates of authority.

        (11)  A person who completes excess hours of continuing education courses in one certificate term may apply the excess hours to satisfy up to 7.5 hours of continuing education required under this section in the certificate term following that certificate term.

        (12)  Where a certificate of authority for an individual or sole proprietor is cancelled or revoked within 3 months of the expiry date of the certificate and the holder of that certificate applies for a new certificate of authority for the same class of certificate as the former certificate within 6 months of the cancellation or revocation, the applicant must have complied with the continuing education requirements applicable to the former certificate.

        (13)  In this section, "certificate term" means

                  (a) in respect of a life insurance agent's certificate of authority, the period beginning on February 16 and ending on the next February 15,

                  (b) in respect of an accident and sickness insurance agent's certificate of authority, the period beginning on February 16 and ending on the next February 15,

                  (c) in respect of a general insurance agent's certificate of authority, the period beginning on November 1 and ending on the next October 31, and

                  (d) in respect of an adjuster's certificate of authority, the period beginning on June 1 and ending on the next May 31.

7   Section 32 is amended

        (a) by adding "of authority" after "for a certificate";

        (b) by adding "of authority" after "certificates" wherever it occurs.

8   Section 35 is amended

        (a) in subsection (1) by adding "with a maximum policy payout for all claims of $2 000 000 in a policy year" after "per claim";

        (b) in subsection (2) by adding "with a maximum policy payout for all claims of $2 000 000 in a policy year" after "per claim".

9   The Classes of Insurance Regulation (AR 121/2001) is amended

        (a) in section 1(1)

                  (i) by adding the following after clause (k):

                      (k.1) "equipment warranty insurance" means the sub-class of boiler and machinery insurance that comprises insurance against loss of or damage to a motor vehicle or to recreational, marine, farm implement or construction equipment, arising from its mechanical failure, but does not include automobile insurance or insurance incidental to automobile insurance;

                  (ii) by repealing clause (mm);

        (b) in section 2(2) by striking out "vehicle warranty insurance" and substituting "equipment warranty insurance".

10(1)  This Regulation except section 8 comes into force on January 1, 2003.

(2)  Section 8 comes into force on the coming into force of section 465 of the Insurance Act.