O.C. 12/2003

A.R. 9/2003

January 22, 2003

   

    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 2 is amended

    (a) in subsection (1) by repealing clause (a) and substituting the following:

        (a) full life insurance;

        (a.1) level 1 life insurance;

        (a.2) probationary life insurance;

    (b) by adding the following after subsection (1):

        (1.1)  Subsection (1)(a.2) is repealed on December 31, 2006.

3   The following is added after section 2:

Continuation of pre-existing certificate of authority

 

        2.1(1)  Where immediately before the coming into force of this section

                  (a) an individual held a valid level 1 life insurance agent's certificate of authority, that certificate of authority continues to be valid until it is cancelled or is not renewed, and

                  (b) an individual held a valid level 2 life insurance agent's certificate of authority, that certificate of authority continues as a full life insurance agent's certificate of authority.

        (2)  The holder of a level 1 life insurance agent's certificate of authority must complete at least 15 hours of continuing education in each of the following periods:

                  (a) February 16, 2003 to February 15, 2004;

                  (b) February 16, 2004 to February 15, 2005;

                  (c) February 16, 2005 to February 15, 2006;

                  (d) February 16, 2006 to February 15, 2007.

        (3)  The continuing education required under subsection (2) must consist of portions of the Life Licensing Qualification Program.

        (4)  On the renewal of a level 1 life insurance agent's certificate of authority, the holder of the certificate must provide proof from the insurer that recommended the granting of the certificate that the continuing education required under subsection (2) has been completed.

        (5)  Where the holder of a level 1 life insurance agent's certificate of authority does not complete the continuing education required under this section, the certificate of authority is cancelled.

        (6)  On February 16, 2007, the holder of a level 1 life insurance agent's certificate of authority who has met the requirements of this section and who has passed an examination approved by the Minister is, despite section 8, eligible to receive a full life insurance agent's certificate of authority.

        (7)  An individual holding a valid life insurance agent's certificate of authority who is enrolled in course 101, 102 or 103 of the Insurance Financial Advisors Training Course on or before January 31, 2003 is, despite section 8, entitled to receive a full life insurance agent's certificate of authority prior to February 16, 2007 on the successful completion of all of those courses.

        (8)  Section 30 does not apply to the holder of a level 1 life insurance agent's certificate of authority until February 16, 2007.

(9)  No person may apply for a new level 1 life insurance agent's certificate of authority after January 31, 2003, unless the person has passed an examination approved by the Minister within the 12 months before that date and applies for the certificate within 12 months following the passing of that examination.

Probationary life insurance certificate of authority

 

        2.2(1)  The holder of a probationary life insurance agent's certificate of authority

                  (a) must, within 180 days of the issuance of the probationary certificate, enroll in the Life Licensing Qualification Program,

                  (b) must, within 2 years of the issuance of the probationary certificate, complete the program and pass the Life Licensing Qualification Program examination,

                  (c) must complete a needs analysis for each application for insurance, and

                  (d) must ensure that each application and needs analysis referred to in clause (c) is countersigned by a person who holds a full life insurance certificate of authority.

        (2)  This section is repealed on December 31, 2006.

4   Section 3 is repealed and the following is substituted:

Level 1 or probationary life insurance agent's certificate

 

        3(1)  The holder of a level 1 or probationary life insurance agent's certificate of authority

                  (a) may act as an insurance agent only for the licensed life company that recommends that the holder be issued a life insurance agent's certificate of authority, and

                  (b) may not complete any replacement of a contract within the meaning of the Replacement of Life Insurance Contracts Regulation unless the disclosure statement required by that Regulation is countersigned by a person who holds a full life insurance agent's certificate of authority.

        (2)  It is a prescribed requirement for obtaining life insurance from another insurer that an insurance agent who holds a level 1 or probationary life insurance agent's certificate of authority, before acting as an insurance agent for that other insurer, obtain the written consent, in each case, of the insurer who recommended the agent under section 458 of the Act.

5   Section 8 is amended

        (a) in subsection (1) by striking out "level 1 insurance" and substituting "full or probationary insurance agent's";

        (b) by repealing subsection (2);

        (c) in subsection (4) by striking out ", (2)";

        (d) in subsection (5)

                  (i) in the words preceding clause (a) by striking out "(1) to (3)" and substituting "(1) and (3)";

                  (ii) in clause (a) by striking out ", (2)";

                  (iii) in clause (b) by striking out "and level";

                  (iv) in clause (c) by striking out "class and level equivalent to those" and substituting "class equivalent to that".

6   Section 10(3) is amended by striking out "level 2" and substituting "full".

7   Section 33(5) is amended by striking out "60" and substituting "30".

8   The Certificate Expiry, Penalties and Fees Regulation (AR 125/2001) is amended by repealing section 11.

9   The Replacement of Life Insurance Contracts Regulation (AR 127/2001) is amended in section 5 by repealing subsection (2) and substituting the following:

        (2)  The holder of a level 1 or probationary life insurance agent's certificate of authority must have the disclosure statement countersigned by the holder of a full life insurance agent's certificate of authority who, by countersigning it, accepts responsibility for the completion of the disclosure statement as if the holder of the full life insurance agent's certificate of authority had completed the disclosure statement as the insurance agent.