O.C. 364/2012

A.R. 199/2012

November 7, 2012


††††††††††† The Lieutenant Governor in Council makes the Insurance Agents and Adjusters Amendment Regulation set out in the attached Appendix. †

For Information only

Recommended by:††††††††† President of Treasury Board and Minister of Finance

Authority:†††††††††††††††††††††††††††† Insurance Act
††††††††††††††††††††††††††††††††††††††††††††††† (section 498)


APPENDIX

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 1(1) is amended

†††††††††††††††††††††††††††††††† (a)††† by repealing clause (a);

†††††††††††††††††††††††††††††††† (b)††† by adding the following after clause (c):

†††††††††††††††††††††††††††††††††††††† (c.1)††† ďcertificate of authorityĒ means an accident and sickness agentís certificate of authority, a general insurance agentís certificate of authority, an adjusterís certificate of authority or a life insurance agentís certificate of authority, as the case may be;

†††††††††††††††††††††††††††††††† (c)††† by repealing clause (i);

†††††††††††††††††††††††††††††††† (d)††† by repealing clause (k).

 

3   Section 2 is amended

†††††††††††††††††††††††††††††††† (a)††† by repealing subsection (1.1);

†††††††††††††††††††††††††††††††† (b)††† by repealing subsection (1.2) and substituting the following:

(1.2)  The following levels within the general insurance class of insurance agentís certificates of authority are established for individuals:

††††††††††††††††††††††††††††††††††††††††† (a)††† probationary

††††††††††††††††††††††††††††††††††††††††† (b)††† level 1;

††††††††††††††††††††††††††††††††††††††††† (c)††† level 2;

††††††††††††††††††††††††††††††††††††††††† (d)††† level 3.

†††††††††††††††††††††††††††††††† (c)††† by repealing subsection (2);

†††††††††††††††††††††††††††††††† (d)††† by repealing subsection (5) and substituting the following:

(5)  A general insurance agentís certificate of authority authorizes an insurance agent to sell travel insurance.

 

4   Section 2.1 is repealed.

 

5   Section 3 is repealed.

 

6   Section 5(1)(a) is repealed and the following is substituted:

†††††††††††††††††††††††††††††††† (a)††† the individual must, with respect to the class and level of certificate of authority being applied for, have passed an examination approved by the Minister and must apply for the certificate within 12 months following the passing of that examination with respect to the class and level of certificate of authority being applied for;

 

7   Section 8(4) is repealed and the following is substituted:

(4)  An individual who fails the examination referred to in subsection (1) or (3) is allowed to rewrite that examination more than once, but a 3rd or subsequent rewriting within a 3‑year period is not allowed unless a period of at least 6 months has elapsed since the date of the previous rewriting.

 

8  The following is added after section 8:

Probationary general insurance agentís
certificate of authority

8.1(1)  The holder of a probationary general insurance agentís certificate of authority

†††††††††††††††††††††††††††††††† (a)††† must be supervised by an individual who holds a level 2 general insurance agentís certificate authority or who is a designated representative referred to in section 10, in accordance with† standards established by the designated representative under section 10(4), and

†††††††††††††††††††††††††††††††† (b)††† must ensure that any document relating to the application for a policy of general insurance or for any changes to a policy of insurance is countersigned by a person who holds a level 2 general insurance agentís certificate authority or who is a designated representative referred to in section 10.

(2)  A probationary general insurance agentís certificate of authority expires on the earlier of

†††††††††††††††††††††††††††††††† (a)††† 90 days after it is issued, and

†††††††††††††††††††††††††††††††† (b)††† the issuance of a level 1 general insurance agentís certificate of authority.

(3)  A probationary insurance agentís certificate of authority may not be renewed.

(4)  An individual is eligible to be issued a probationary general insurance agentís certificate of authority only once.

 

9   Section 9 is repealed and the following is substituted:

Qualifications for general insurance agents

9(1)  An individual is not eligible to apply for a level 1 general insurance agentís certificate of authority for any class of insurance unless within the previous 12 months the individual has passed the level 1 general insurance examination approved by the Minister.

(2)  The holder of a level 1 general insurance agentís certificate of authority must be supervised by an individual who holds a level 2 general insurance agentís certificate of authority or who is a designated representative referred to in section 10, in accordance with standards established by the designated representative under section 10(4),

(3)  An individual is not eligible to apply for a level 2 general insurance agentís certificate of authority unless, within the previous 12 months,

†††††††††††††††††††††††††††††††† (a)††† in the case of an individual who does not hold a level 1 general insurance agentís certificate of authority, the individual has passed the level 1 general insurance examination referred to in subsection (1) and the level 2 general insurance examination approved by the Minister, and

†††††††††††††††††††††††††††††††† (b)††† in the case of an individual who holds a level 1 general insurance agentís certificate of authority, the individual has passed the level 2 general insurance examination referred to in clause (a).

(4)  An individual is not eligible to apply for a level 3 general insurance agentís certificate of authority unless,

†††††††††††††††††††††††††††††††† (a)††† within the previous 36 months,† the individual has held a level 2 general insurance agentís certificate of authority for a period of at least 24 months and has, within the previous 12 months,† passed the level 3 general insurance examination approved by the Minister, and

†††††††††††††††††††††††††††††††† (b)††† the individual has responsibility for the management and supervision of the business that holds a general insurance agentís certificate of authority.

(5)  An individual who fails an examination referred to in subsection (1), (3) or (4) is allowed to rewrite that examination more than once, but a 3rd or subsequent rewriting within a 3‑year period is not allowed unless a period of at least 6 months has elapsed since the date of the previous rewriting.

(6)  Despite subsection (1), (3) or (4), an individual is not required to pass an examination referred to in those subsections

†††††††††††††††††††††††††††††††† (a)††† if

†††††††††††††††††††††††††††††††††††††††††† (i)††† the individual is not a resident of Alberta and is licensed to act as a general insurance agent in the individualís home jurisdiction

††††††††††††††††††††††††††††††††††††††††† (ii)††† provides evidence from the appropriate licensing authority of that jurisdiction certifying that the individual has passed examinations that are equivalent to the examination referred to in subsection (1), (3) or (4), as the case may be, and

†††††††††††††††††††††††††††††††††††††††† (iii)††† the Minister is of the opinion that the examinations referred to in subclause (ii) are equivalent,

†††††††††††††††††††††††††††††††† (b)††† if the applicant held a certificate of authority in the same class and level as is being applied for in the 2 year period before the receipt by the Minister of the application for a certificate of authority,

†††††††††††††††††††††††††††††††† (c)††† if the individual intends to carry on business as an insurance agent only for hail insurance or livestock insurance, or

†††††††††††††††††††††††††††††††† (d)††† if the individual was licensed in another jurisdiction within the previous 12 months as an insurance agent in a class and level equivalent to those being applied for, is resident in Alberta, and provides evidence from the appropriate licensing authority of that jurisdiction certifying that the individual meets the examination requirement of clause (a).

(7)  The Minister may issue a general insurance agentís certificate of authority, subject to any terms and conditions the Minister may impose, covering a period not exceeding 180 days to an applicant who has not written an examination referred to in subsection (1), (3) or (4), if the applicant is

†††††††††††††††††††††††††††††††† (a)††† the surviving spouse or surviving adult interdependent partner, next of kin or personal representative of a deceased agent who at the time of the agentís death held a subsisting general insurance agentís certificate of authority, or

†††††††††††††††††††††††††††††††† (b)††† the spouse or adult interdependent partner, relative, employee, legal guardian or trustee of an insurance agent, or the representative of a committee of insurers of an insurance agent, who at the time of becoming disabled through sickness, incapacity, injury or other similar circumstances, held a subsisting general insurance agentís certificate of authority.

 

10   Section 10 is repealed and the following is substituted:

Designated representative

10(1)  This section establishes the requirements to be met by a designated representative of a business that holds an insurance agentís certificate of authority.

(2)  A designated representative of a business must

†††††††††††††††††††††††††††††††† (a)††† be an individual,

†††††††††††††††††††††††††††††††† (b)††† subject to subsection (3), hold an insurance agentís certificate of authority that is of the same class as the insurance agentís certificate of authority held by the business, and

†††††††††††††††††††††††††††††††† (c)††† have responsibility for the management and supervision of the business.

(3)  The designated representative of a business that holds a general insurance agentís certificate of authority must

†††††††††††††††††††††††††††††††† (a)††† hold a level 3 general insurance agentís certificate of authority, or

†††††††††††††††††††††††††††††††† (b)††† have established eligibility for a level 3 general insurance agentís certificate of authority within the previous 12 months before being designated as a designated representative.

(4)  A designated representative of a business that holds a general insurance agentís certificate of authority must† establish appropriate standards relating to the supervision of persons who hold a probationary or level 1 general insurance agentís certificate of authority.

(5)  In determining standards relating to the supervision of certificate holders referred to in subsection (4), the designated representative must take into account the levels of qualification, education and experience of the certificate holder, the nature of the insurance business being conducted, the requirements of the Insurance Act and any applicable regulations under the Act.

(6)  A person who on the coming into force of this subsection is, or within the previous 24 months was, a designated representative of a business that holds a general insurance agentís certificate of authority is eligible to apply for a level 3 general insurance agentís certificate of authority without having to write the examinations referred to in section 9(4)(a).

 

11   Section 22 is amended

†††††††††††††††††††††††††††††††† (a)††† by repealing subsection (3)(a) and substituting the following:

††††††††††††††††††††††††††††††††††††††††† (a)††† has successfully completed

††††††††††††††††††††††††††††††††††††††††††††††††††† (i)††† 6 courses of the Insurance Institute of Canada for a designation as an Associate of the Insurance Institute of Canada, of which one course must be C 15 (Loss Adjustment and Claims Settlements), C 17 (Claims 1) or C 110 (Essentials of Loss Adjusting), or

†††††††††††††††††††††††††††††††††††††††††††††††††† (ii)††† courses that in the opinion of the Minister are equivalent to the courses referred to in subclause (i),

†††††††††††††††††††††††††††††††††††††††††††† and

†††††††††††††††††††††††††††††††† (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 one of the following courses of the Insurance Institute of Canada:

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††† (A)††† the C 46 (Claims 2);

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††† (B)††† C 41 (Property Loss Adjustment);

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††† (C)††† C 111 (Advanced Loss Adjusting),

††††††††††††††††††††††††††††††††††††††††††††††††††††† or

†††††††††††††††††††††††††††††††††††††††††††††††††† (ii)††† courses that in the opinion of the Minister are equivalent to the courses referred to in subclause (i),

†††††††††††††††††††††††††††††††††††††††††††† and

†††††††††††††††††††††††††††††††† (c)††† by repealing subsection (7)(a) and substituting the following:

††††††††††††††††††††††††††††††††††††††††† (a)††† in the case of

††††††††††††††††††††††††††††††††††††††††††††††††††† (i)††† an individual who is not a resident of Alberta, the individual is licensed as an insurance adjuster in the individualís home jurisdiction and provides evidence from the appropriate licensing authority of that jurisdiction certifying that the applicant has satisfactorily passed insurance courses, programs and examinations that are equivalent to the courses, and program and examination referred to in subsections (1), (3) and (5) and the Minister is of the opinion that the courses, programs and examinations are equivalent;

†††††††††††††††††††††††††††††††††††††††††††††††††† (ii)††† an individual who is a resident of Alberta, the individual has satisfactorily passed insurance courses, programs and examinations that are equivalent to the courses, and program and examination referred to in subsections (1), (3) and (5) and the Minister is of the opinion that the courses, programs and examinations are equivalent;

 

12   Section 29(1) is amended by adding ďsection 7 ofĒ after ďpursuant toĒ.

 

13   Section 30 is amended

†††††††††††††††††††††††††††††††† (a)††† by adding the following after subsection (1):

(1.1)  Notwithstanding subsection (1), an individual or sole proprietor that holds a general insurance agents certificate of authority must, for the period beginning November 1, 2013 and ending June 30, 2014 , complete at least 10 hours of the continuing education courses approved under section 29 with respect to the certificate of authority

†††††††††††††††††††††††††††††††† (b)††† by repealing subsection (13) and substituting the following:

(13)  Subject to subsections 14 and 15, in this section, ďcertificate termĒ means

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

††††††††††††††††††††††††††††††††††††††††† (c)††† in respect of a general insurance agentís certificate of authority, except a probationary certificate of authority, the period beginning on November 1 and ending on the next October 31, and

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

(14)  In this section, ďcertificate termĒ means

††††††††††††††††††††††††††††††††††††††††† (a)††† in respect of a life insurance agentís certificate of authority† issued or renewed on or after December 16, 2012 but before June 30, 2014, the period from February 16, 2013 and ending June 30, 2014,

††††††††††††††††††††††††††††††††††††††††† (b)††† in respect of an accident and sickness insurance certificate of authority† issued or renewed on or after December 16, 2012 but before June 30, 2014, the period from February 16, 2013 and ending June 30, 2014,

††††††††††††††††††††††††††††††††††††††††† (c)††† in respect of a general insurance agentís certificate of authority† issued or renewed on or after September 1, 2013 but before June 30, 2014, the period from November 1, 2013 and ending June 30, 2014, and

††††††††††††††††††††††††††††††††††††††††† (d)††† in respect of an adjusterís agentís certificate of authority† issued or renewed on or after April 1, 2013 but before June 30, 2014, the period from June 1, 2013 and ending June 30, 2014

(15)  Effective July 1, 2014, in this section, ďcertificate termĒ means,

††††††††††††††††††††††††††††††††††††††††† (a)††† in respect of a life insurance agentís certificate of authority, the period beginning on July 1 and ending on the next June 30,

††††††††††††††††††††††††††††††††††††††††† (b)††† in respect of an accident and sickness insurance agentís certificate of authority, the period beginning on July 1 and ending on the next June 30,

††††††††††††††††††††††††††††††††††††††††† (c)††† subject to section 8.1(2)(a), in respect of a general insurance agentís certificate of authority, the period beginning on July 1 and ending on the next June 30, and

††††††††††††††††††††††††††††††††††††††††† (d)††† in respect of an adjusterís certificate of authority, the period beginning on July 1 and ending on the next June 30.

 

14   Section 37(1) is repealed and the following is substituted:

Transitional

37(1)  Despite section 22(1), (3) and (5) and subject to this section, on the coming into force of this Regulation, an adjusterís certificate of authority under Part 16 of the former Insurance Act that is a level 5 certificate of authority is continued as a level 3 adjusterís certificate of authority and the holder is deemed to be a designated representative until May 31, 2002 and is deemed to meet the requirements of section 24(2)(b) as long as the holder is the designated representative of the business that employs the holder when this Regulation comes into force.

 

15   Section 40 is amended by striking out ďApril 30, 2016Ē and substituting ďApril 30, 2020Ē.