Licensing Reference Guide - fsco.gov.on.ca€¦ · Welcome to the Financial Services Commission of Ontario (FSCO) Licensing Reference Guide. This guide has been designed as a working

LICENSING

REFERENCE

GUIDE

(Your guide to the agent licensing process in Ontario)

---------------------------------------------------------------

______________________

LICENSING

REFERENCE

GUIDE

In order to receive updates to this guide, please complete the registration card below and forward to FSCO, attention Licensing & Enforcement Branch.

Please place me on the FSCO Licensing Reference Guide Registered Users list:

Name: ______________________ Company: ______________________ Address: ______________________

Phone: ______________________ Fax: ______________________

TABLE OF CONTENTS

1. INTRODUCTION

1.1 Welcome to the Guide

1.2 Who is Required to Hold an Insurance Agent’s Licence?

2. OBTAINING A LEVEL I LICENCE

2.1 Sponsorship

2.2 Duties of Sponsor

2.3 Application Form

2.4 Fees

2.5 Qualifying Examinations

2.6 Examination Equivalencies

2.7 Level I Licence Restrictions

2.8 Level I Time Limitation

3. TRANSFERRING A LEVEL I LICENCE

3.1 Responsibilities of Agent/Applicant

3.2 Responsibilities of Sponsor

4. OBTAINING A LEVEL II LICENCE

4.1 Agent Notification

4.2 Sponsor Notification Listing

4.3 Application Forms

4.4 Fees

4.5 Qualification Criteria

4.6 Exemptions

4.7 Address Changes

4.8 Holding a Level II Licence While Out of the Country

1 October 2000

5. OBTAINING A GENERAL OR ACCIDENT & SICKNESS LICENCE

5.1 Applicability of this Chapter

5.2 Sponsorship



5.5 Fees



5.8 Licence Restrictions

5.9 Licence Transfers

6. OBTAINING A CORPORATE LICENCE



6.3 Fees

6.4 Life Insurance Agent’s Corporate Licence Application Process

6.5 General Insurance Agent’s Corporate Licence Application Process

6.5.1 Sponsorship

6.5.2 Duties of Sponsor

6.5.3 Application Process

6.6 Non-Resident - Life and General Corporate Licences

6.7 Renewals - Life and General Corporate Licences

6.7.1 Fees

6.8 Questions & Answers

7. APPLICATIONS FOR LIFE AGENT LICENCES BY NON-RESIDENTS

8. ONGOING LICENCE REQUIREMENTS - FOR ALL LIFE AGENTS

8.1 Errors & Omissions Insurance

8.1.1 Level of Insurance Coverage Required

8.1.2 Extended Coverage Required

March 1999

8.2 Continuing Education

8.2.1 Hour Requirements

8.2.2 Accord on Harmonized CE Standard

8.2.3 Acceptable Courses

8.2.4 CE Declaration Audits

8.2.5 Non-Completion of Hours

8.2.6 Documentation

8.2.7 Insurers’ Role

9. LICENCE RENEWALS

9.1 Life Agent Licence Renewals

9.1.1 Sponsor Notifications

9.1.2 Agent Notification

9.1.3 Fees

9.1.4 Application Form

9.2 General and Accident & Sickness only Renewals

9.2.1 Fees

9.2.2 Application Form

10. TERMINATION OF SPONSORSHIP

10.1 As an Agent - What does this Mean?

10.2 What are my Obligations as a Sponsor?

11. TERMINATION FOR CAUSE


11.2 Responsibilities of Agent

12. RETURNED APPLICATIONS

March 1999

13. GENERAL INFORMATION

13.1 Application Processing 13.2 Fee Processing 13.3 Refunds 13.4 NSF Cheques 13.5 Name Changes 13.6 Duplicate Licences 13.7 Certificates of Authority 13.8 Listing of all Agents 13.9 Website 13.10 FSCO’s Address and Telephone Number 13.11 Fee Listing

14. WHERE IS INFORMATION AVAILABLE?

14.1 General Information Sources for Everyone 14.2 Sponsored Agents 14.3 Non-Sponsored Agents

15. COMMONLY ASKED QUESTIONS

16. FSCO TELEPHONE TREE

16.1 Listing of Topics Covered

17. BULLETINS

.LH-1/98 Industry Protocol for reporting unsuitable activities of life agents, other life insurance-related information

.LH-2/97 Regulatory and administrative update on life agent matters

.LH-2/96 Continuing education requirement for life insurance agents

.LH-1/96 New Life Agent form and procedures

.LH-3/95 Code of Ethics for life insurance agents under Life Agent Reform (LAR) initiative

.LH-2/95 Errors & Omissions Insurance: Requirements for Licensed Life Insurance Agents

18. REGULATION 663 as amended by Regulation 760/94

March 1999

CHAPTER 1

INTRODUCTION

1.1 Welcome to the Guide

Welcome to the Financial Services Commission of Ontario (FSCO) Licensing Reference Guide. This guide has been designed as a working tool for FSCO staff and is being made available to a variety of people with agent licensing responsibilities. The answers to most of your licensing questions should be documented in the chapters ahead. While every effort has been made to ensure the accuracy of this guide, decisions should not be made based solely on the information contained in it. Other sources should also be consulted, in particular, the Insurance Act and its Regulations. Any material changes to this information will be communicated.

The “Notes” chapter has been provided so that you may customize the guide to fit your own needs. Updates to the guide will be sent to registered holders on a periodic basis.

1.2 Who is required to hold an insurance agent’s licence?

Anyone wishing to sell or solicit the sale of insurance in Ontario, whether he/she is a resident of the province, or not, must have a valid licence. This applies to all types of selling of life & accident and sickness insurance and general insurance; whether that selling be done in person, in writing, or over the telephone.

There are differences in the law governing life and general agents. In particular, the provisions of Life Agent Reform do not apply to general agents.

Ontario has a two step life insurance licensing system consisting of Level I and Level II agents. Level I is the entry level for life agents.

It is not possible for an agent to remain at Level I. All agents are required to progress to Level II in order to remain licenced. Level II represents a change in licence status, and denotes an agent with a higher level of experience and fewer licence restrictions.

General agents do not have a step licensing requirement.

All agents are expected to conduct themselves in a professional manner, keeping abreast of ongoing changes in the industry and marketplace.

All applications are subject to a stringent screening and qualification process. Any attempt to provide false information, either directly or by omission, by any party material to the process, is considered extremely serious and may result in enforcement action, including prosecution under the Provincial Offences Act.

1 March 1999

Anyone found to be engaging in the business of insurance without a valid licence is subject to enforcement action. All agents and insurers must abide by the provisions of Ontario’s Insurance Act and its associated Regulations.

2 March 1999

CHAPTER 2

OBTAINING A LEVEL I LICENCE

2.1 Sponsorship

In order to submit an application to be licensed as a Level I agent, an applicant must first locate an insurance company that is willing to enter into an agency contract with the applicant/agent and certify to the Financial Services Commission of Ontario (FSCO) that the applicant/agent is suitable. This is known as sponsorship. FSCO does not provide names of potential sponsors.

All Level I agents must be sponsored by an insurance company in order to obtain a licence and keep that licence. If at any time either party chooses to sever the relationship, an agent’s licence still exists, but is “suspended”, meaning that he/she is no longer entitled to sell insurance or act as an agent in any way until a new sponsor is found and the licence reactivated by FSCO. Further details regarding this topic are covered in Chapter 10, which deals with termination of sponsorship.


Under the “Duty of Care” provisions, sponsoring insurance companies are required to investigate the background of any applicant or agent they sponsor. This means determining that the person is of good character and reputation; has an appropriate educational background to do the job; and is in all respects a suitable person to receive a licence.

If there is a discrepancy between the information an applicant has provided on his/her application for licensing with respect to any criminal convictions, and the information resulting from the criminal records search, a letter will be sent from the Commission to the sponsor, drawing their attention to the information. The consent signed by the applicant on the application form allows the Commission to share this information with the sponsor.

The sponsor is then asked to reaffirm their intention to continue to sponsor the applicant, keeping in mind the duty of care obligation, prior to the Commission continuing with the processing of the application.


All life insurance companies have been provided with the necessary masters to produce applications for their own use or that of any agent they contract with. To ensure that the application can be readily identified, please print the form on canary yellow coloured paper, based on the sample in this binder. The current form in use is entitled “Life Insurance Agent Application”, and is referred to in Bulletin LH-1/96. A sample of the “Life Insurance Agent Application” is located at the end of this chapter.

1 March 1999

All questions pertaining to a new Level I application must be answered completely, or the application will not be processed. The sections to be completed are: A, B, C, E. Incomplete applications will be returned to the sponsoring company with a letter identifying the problem. The applicant will also receive a copy of the letter. Chapter 12 contains illustrations of various examples of why an application might be returned.

To avoid unnecessary time delays, the application should be read carefully, and be fully completed, attaching all of the requested information. If a prospective agent has questions concerning a question on the application, his/her sponsoring company should be able to assist.

Applications must be signed by a Commissioner of Oaths or a notary public. All information on the application form will be reviewed by Commission staff, a background check for criminal convictions will be requested, and an applicant’s name will be searched. Please ensure that the agent’s full legal name is specified on the application. To avoid delays in processing, it is imperative that applicants answer the questions in part “B” completely and truthfully, and attach all requested supporting information.

If an applicant must use a photocopy of the application form, the Commission will accept it. However, all information and signatures on the form must be original.

2.4 Fees

The application fee for the two year Life and Accident & Sickness agent’s licence is $150.00. Cheques should be made payable to the “Minister of Finance”. The licence will expire exactly two years after the issue date, but may become “suspended” at any time prior to expiry.


No application for licensing will be accepted until after an agent has passed the qualifying examinations or has documentation to support an examination equivalency. Any applications made by prospective agents who do not meet the examination criteria will be returned.

In order to become licensed as a Level I agent, an applicant must first successfully pass the two qualifying examinations for life and accident & sickness insurance. To pass, the applicant must achieve a mark of 75% or higher on each examination. FSCO accepts the qualifying examination offered and administered by the Canadian Association of Insurance and Financial Advisors (CAIFA). CAIFA administers the examinations at their offices at 41 Lesmill Road, Don Mills, Ontario, as well as at many other sites across Ontario. Further information may be obtained directly from CAIFA by calling 416-444-5251 or 1-800-563-5822. The current cost to take the exams is $60.00 per attempt.

2 March 1999

http:$150.00

Examination results are only valid for six months, after which time an applicant must rewrite or provide a “detailed” description of what he/she has done to maintain the level of knowledge tested in the examination. Accordingly, any application for licensing must be submitted with current examination results, or detailed description, otherwise it will be returned to the sponsoring company. In cases where an applicant has taken courses to maintain his/her level of knowledge, supporting documentation should also be attached.

Examination results must be originals, not a photocopy. This is in order to avoid fraudulent altering of documents.


Persons applying for a Level I agent licence may be exempt from the qualifying examination if he or she:

* is a non-resident applicant, (that is, resides outside of Ontario), who has completed the same examination in any provincial or territorial jurisdiction (Note: applicants licensed in Alberta and Manitoba must take the accident & sickness examination as their licence is based only on an examination of life insurance); or

* holds either a Canadian Chartered Life Underwriter (CLU) or Fellow of the Life Office Management Association (FLM1) or Quebec Assuruer-Vie-Agree (AVA) designation; or

* previously held a valid Ontario life insurance agent’s licence. He/she must have held the licence within two years of the date of receipt of his/her current application to FSCO for a new life agent licence; or

* holds an Associate or Fellowship designation with the Insurance Institute of Canada or the (British) Chartered Insurance Institute, provided the “Insurance on the Person” examination or its equivalent has been passed.

Proof of meeting an examination equivalency must be attached to the licence application, otherwise it will be returned.

FSCO’s Level I application processing and approval target time is five days from the date the application is received at the Commission. This turnaround time only applies to correctly completed, problem free applications, which are submitted with all of the required supporting documentation, correct fee payment and examination results or exam equivalency documentation.

Once a licence has been issued, it is mailed to the sponsoring insurance company. A list of all licences issued and all currently licensed agents is available on the FSCO website, which can be found at www.fsco.gov.on.ca.

Any questions regarding the status of an application should be directed to the licensing department

3 October 2000

at the head office of an applicant’s sponsoring insurance company.

2.7 Level I Licence Restrictions

The sole business of a Level I agent must be the provision of financial services. There are some

restrictions which apply to both Level I and Level II agents, however, and they are specified in

Regulation 663 as amended by Regulation 760/94. Some of these restrictions are listed below.

Any agent found to be in violation of the restrictions listed in the Insurance Act and its regulations,

may have enforcement proceedings initiated against him/her. A copy of the Regulation is found in

Chapter 18.

The applicant shall be deemed to be in a position to offer inducement or use coercion or undue

influence in order to control, direct or secure insurance business if the applicant is: an officer or

employee of a bank or other deposit-taking institution, a loan corporation or a finance company; a

doctor or a dentist; a lawyer or an employee thereof; an accountant, auditor or trustee in

bankruptcy; a police officer; a member of the clergy or a minister; a mortgage broker who is not

also registered as a real estate broker under the Real Estate and Business Brokers Act; a full-time

employee of the Government of Canada or any branch thereof, of any municipal or provincial

government in Canada or any branch thereof, or of a Crown corporation; a person occupying office

space in the office of any person referred to in this list.

Anyone acting as a mortgage agent and/or mortgage sales person, or anyone conducting similar

activities, is ineligible for licensing under 4(2.2)(g).

If an agent carries on the main portion of his/her business in a township having a population of less

than 10,000 or in any municipality of less than 5,000, then he/she is not required to abide by the

sole occupation restriction. However, all other restrictions still apply.

2.8 Level I Time Limitation

All licensed Level I agents must move to Level II. A Level I agent may apply for Level II status after he/she has been licensed for at least two years. The maximum time that an agent may remain at Level I is four years, after which time, his/her licence will no longer be renewed as a Level I. The agent must apply for Level II status. There are no exemptions from this requirement. The law does not provide any authority to waive the requirement or to allow exceptions.

To apply to change to Level II status, the “Life Insurance Agent Application” is used, and is available from an agent’s sponsoring insurance company.

Agents who have been licensed for four years cannot reapply as new agents at Level I. It does not matter if the agent is re-entering the industry after an absence.

4 October 2000

Financial Services Commission des Commission services financiers of Ontario de l'Ontario

Application for:

Level I Licence (initial applicants)

Level II Licence

Complete Parts A, B, C, E

Last name (Legal name in Canada) (Print) First name Middle initial Date Application Made

LIFE INSURANCE AGENT APPLICATION

Part A: Identification Information

Attachments Fee Payment

For FSCO use only

Licence No.

Date Issued

Date Expires

CPIC Check Application Reviewed by

(representative signature)

3. If you have any questions about this application, contact your sponsoring company. For general information, you may contact the Agents and Adjusters Voice Menu Response System at (416) 250-9209 [Toronto] and at (1-800) 263-0541 [outside Toronto].

Part A continues...

Personal information requested on this Application is collected under the authority of the Insurance Act, R.S.O. 1990, C.I.8, as amended. This information will be used to determine if an applicant is qualified to have a licence issued or renewed. The information may be disclosed to a sponsoring company. Any questions about this collection may be directed to the Manager - Licensing, Agents & Adjusters.

1. This application consists of five parts, Parts A to E. Complete Part A and other relevant parts as instructed below.

Complete the required examination prior to submitting an application for a life insurance agent licence. Information about taking examinations may be obtained from your sponsoring company or from the Agents and Adjusters Voice Menu Response system (see below).

2. This application is being submitted as: (check one box only)

Complete Parts A, D

Notice of Change in:

Complete Parts A, C

Complete Part A

Sponsor (i.e. transfer between renewal periods) (Level I agents only)

Mailing Address (Level II agents only)

Level I Renewal

Level II Renewal

Complete Parts A, B, C, E

Complete Parts A, B, E

Complete Parts A, B, C, D,EChange to Level II licence at the time of renewal

August 2000 Ce formulaire est également disponible en français. FSCO-AA1

Sex M F

Birth Date

FSCO Licence Number (if currently licensed) Sponsor Company (if currently licensed as Level I agent)

Print the following information for identification purposes.

4. Incomplete applications — those that are missing any of the items listed below — will be returned without processing.

Responses to all required parts and questions. Relevant attachments and supporting documents.

Required signatures. Required fee.

5. Make all cheques and money orders payable to “THE MINISTER OF FINANCE”.

6. If you are selling insurance, using a corporation, partnership, or name other than your personal name, that corporation, partnership or business name must also be licensed with the Financial Services Commission of Ontario.

7. All Level I applications must be submitted through your sponsoring company. Level II agents may submit applications or information through an insurance company, or directly to:

Agents and Adjusters Section Financial Services Commission of Ontario 5160 Yonge Street Box 85 North York, Ontario M2N 6L9

8. Providing false, misleading or incomplete information on this application and/or any attachments is an offence under the Insurance Act, and doing so may be sufficient grounds to reject the application, revoke a licence, or result in a prosecution.

9. It is your responsibility to ensure that your licence is always in force.

day month year

Continuation of Part A from previous page

Residence address

Home Telephone Number

Area Code

City/Town Township (if rural)

Province Postal Code

Level II only - Mailing Address (if different than above)

City/Town Township (if rural) Province Postal Code

Business Telephone Number

Area Code Business Fax Number

Area Code

Check box to indicate proof of exam results attached, OR provide Exam information.

Proof of FSCO Level II Exam Results LUATC, Parts 1 & 2 (copy of certificate)

Exam Information:

Date Exam Written

Location

Level I Applicants Level II Applicants Check box to indicate proof of exam results attached, OR provide Exam information.

Proof of FSCO Level I Exam Results

Exam Information:

Date Exam Written

Location

Certificate of Authority (other jurisdiction) LUAC MQE (copy of certificate)

Other financial services (specify)Registered Insurance Broker Real Estate Salesperson Mortgage Broker

Mutual Funds Salesperson Registered Securities Representative Limited Market Dealer

Examination Requirements

Check additional registrations held

(DD/MM/YY) (DD/MM/YY)

Financial Services Commission of Ontario August 2000 Ce formulaire est également disponible en français. FSCO-AA1

Part B: Level I Application and All Renewals

Providing false, misleading or incomplete information on this application and/or any attachments may be sufficient grounds to reject the application or revoke a licence, or result in prosecution.

If you answer “yes” to any question in Part B, attach a full explanation in your own words and any relevant official documents. If the Application is for licence renewal, only attach supporting documentation not previously submitted.

1.

2.

3.

4.

5.

6.

7.

Check appropriate response.

Have you ever had an employment or business relationship terminated for breach ofconfidentiality, breach of trust, fraud, misappropriation of funds, theft, forgery, sexualharassment, or physical assault?

Have you ever been successfully sued or has a complaint ever been made against you toa regulatory body in any province, territory, state, or country that was or is, based inwhole or in part, on fraud, theft, deceit, misrepresentation, forgery, or similar conduct;or based in whole or in part, on professional negligence or misconduct (including claims paid by your errors and omissions insurance carrier or bonding company)?

Have you ever been a controlling shareholder, officer, or partner of a corporation orpartnership which was declared bankrupt or made a voluntary assignment inbankruptcy, made a proposal under any legislation relating to bankruptcy or insolvency,or is currently not discharged?

YES

(If yes, include trustee's name and address, location of bankruptcy filing, Assignment of Bankruptcy or ReceivingOrder, Statement of Affairs, and an explanation as to the circumstances of the bankruptcy).

NO YES

YESNO

NO

YESNOHave you ever been declared bankrupt or made a voluntary assignment in bankruptcy,or are you currently an undischarged bankrupt?

(If yes, include trustee's name and address, location of bankruptcy filing, Assignment of Bankruptcy or ReceivingOrder, Statement of Affairs, and an explanation as to the circumstances of the bankruptcy).

Has any partnership or corporation, of which you are or were at the time of such event a partner, officer, director or a controlling shareholder, ever pleaded guilty or been found guilty of an offence under any law of any province, territory, state, or country, or is any such partnership or corporation currently the subject of any charges?

YESNO

YESNO

YESNOHave you ever been refused registration or a licence under any legislation which required registration or licensing to deal with the public in any capacity (e.g. insurance agent, RIBO broker, securities dealer, motor vehicle dealer) in any province, territory, state, or country; or have you held such a licence and been the subject of a disciplinary proceeding that resulted in a penalty being imposed (e.g. suspension, termination, reprimand, surrender, etc.)?

Have you ever pleaded guilty or been found guilty of an offence under any law of any province, territory, state or country, or are you currently the subject of any charges? A criminal record search is part of the regular screening process. Your name WILL be searched. Non-disclosure or any misrepresentation of your history of offences will result in significant delays in processing yourapplication and may necessitate a public hearing, as well as possible charges under the Provincial Offences Act.

Offences under federal statutes such as the Criminal Code, the Narcotic Control Act, the Food and Drugs Act, the Income Tax Act (Canada), the Immigration Act (Canada), the Competition Act, the Copyright Act are criminal offences and must be disclosed. Where you have pleaded guilty or been found guilty of an offenceunder the above statutes, or any others, such offences are to be reported even if you were given an absolute orconditional discharge. Where you have received an absolute discharge, disclose it unless at least one year haspassed since you were sentenced. In the case of a conditional discharge, disclose it unless at least three yearshave passed since the date sentence was imposed.

You do not have to disclose any offence for which a pardon has been granted under the Criminal Records Act (Canada) and has not been revoked. (Pardons are not automatically granted merely because of the passage oftime. An absolute or conditional discharge is not a pardon). You do not have to disclose convictions under either the Young Offenders Act or its predecessor the Juvenile Delinquents Act.

Offences also include contraventions of any provincial statutes such as the Highway Traffic Act, the Securities Act, the Provincial Offences Act, the Real Estate Business Brokers Act, the Mortgage Brokers Act, the Registered Insurance Brokers Act, and the Human Rights Code, 1981, or their equivalent in other provinces. You do not have to disclose findings of guilt for minor traffic infractions such as speeding or parking violations.

Financial Services Commission of Ontario August 2000 Ce formulaire est également disponible en français. FSCO-AA1

Part C: Notice of Appointment of Agent by Sponsor Company and Transfer of Licence

To be completed by the licensed insurer that is sponsoring you.

Applicant's Name

is hereby sponsored and authorized in writing to act as an agent of

Name of Insurer

The sponsor company has investigated the record of the applicant and is satisfied:

1. That he/she is a person of good character and reputation;

2. That he/she is possessed of an educational background that is appropriate to the responsibilities of an agent of the sponsor company, and

3. That the applicant is in all respects a suitable person to receive a licence.

If this appointment is a transfer of sponsor, confirm the following statement by checking the box.

We have communicated with the applicant's former sponsor and his/her record is satisfactory.

THE ABOVE APPLICANT WILL NOT ACT AS AN AGENT UNTIL A LICENCE IS ISSUED.

If sponsorship of this agent is terminated, written notice is to be given to the Superintendent, Financial Services, within 30 days of such termination, together with the reasons for the termination, in accordance with Section 393(6) of the Insurance Act.

Sponsoring company

Signature

Per: (Authorized Officer) Title

Date , (Please Print) Name of duly authorized officer of sponsor insurance company

Financial Services Commission of Ontario


Part D: Level II Application

An individual may qualify for Level II licence status if they meet the requirements either in Section A or in Section B. Section C must also be completed.

Check your responses as appropriate.

I have continuously held a valid Ontario life insurance agent’s licence for at least two years, and I have successfully completed one of the following:

Life Underwriters Association of Canada Training Course, Parts 1 and 2 (attach a copy of certificate); OR

Life Underwriters Association of Canada’s Membership Qualifying Examination (attach a copy of certificate); OR

Financial Services Commission of Ontario Level II Examination (attach original examination letter)

Other ________________________________________ (contact sponsoring company).

Section A

OR

Section B

Life Agent Reform came into effect on February 1, 1995. The grandparenting provisions in Life Agent Reform allow for life insurance agents to be granted Level II status if they meet the requirement in the statement below.

I have continuously held a valid Ontario life insurance agent’s licence for a period of 10 years or more as of the date of this Application.

NOTE: Life insurance agents are required to maintain errors and omissions insurance in an amount of at least $1,000,000 in respect of any one occurrence, and at least $2 million in the aggregate, with extended coverage for loss resulting from fraudulent acts. Its deductible must be no more than $1,000.

I will maintain Errors and Omissions insurance as described above, through ____________________ (Sponsor Company, LUAC Plan, or E&O insurance company).

____________________________________________ ________________________ Signature of Applicant Date

Section C



Part E: Affidavit

Sworn before me (Print name of commissioner or notary public)

at the in the (City, town, village, etc.) (Regional municipality, county, etc.)

this day of ,

Signature of Commissioner or Notary Public Signature of Applicant

(A commissioner for taking Affidavits or Notary Public)

I, the undersigned, do hereby state:

1. The statements, declarations and answers to the questions in this application, including attachments, are true, correct and complete.

2. I am familiar with the laws of Ontario relating to the licensing of insurance agents and promise to abide by these laws and regulations.

3. This application is not made for the express purpose of obtaining a licence to act as life insurance agent in respect of any particular risk or risks, or merely to obtain an agent's commission for insurance on my own life or lives of my family, employer or fellow employees.

4. I will hold myself out publicly and carry on business in good faith as an insurance agent only in the name in which I am licensed.

5. I understand that any licence issued may be revoked if I have made a misstatement in this application.

6 I am legally entitled to work in Canada.

7. NOTE: Life insurance agents are required to maintain errors and omissions insurance in an amount of at least $1,000,000 in respect of any one occurrence, and at least $2 million in the aggregate, with extended coverage for loss resulting from

fraudulent acts. Its deductible must be no more than $1,000.

I will maintain Errors and Omissions insurance as described above, through ________________________________________ (Either a sponsor company, LUAC Plan, or E&O insurance company).

8. As a Level I licensed agent (Check applicable statement):

My sole occupation will be personally selling financial products.

OR

a. I carry/will carry on the main portion of my business as an insurance agent in a township having a population of less than 10,000 or in any municipality of less than 5,000.

b. I carry/will carry on business as a travel agent and restrict my insurance sales activity to the sale of travel, accident and baggage insurance.

c. I carry/will carry on business as a real estate broker or real estate salesperson.

9. As a licensed agent, I will not be an officer or employee of a bank or other deposit-taking institution, loan corporation or financial company, and I will not be a mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act.

10. As a licensed agent, I will not occupy office space in the office of a:

bank, or other deposit-taking institution, loan corporation or financial company; mortgage broker who is not also registered as a real estate broker under the Real Estate and Business Brokers Act; doctor or dentist; lawyer or employee thereof; accountant, auditor or trustee in bankruptcy; police officer; member of the clergy or a minister; or full-time employee of the Government of Canada or any branch thereof, of any municipal or provincial government in Canada

or any branch thereof or of a Crown corporation.

11. As a licensed agent, I will not be in a position to offer inducement or use coercion or undue influence in order to control, direct or secure insurance business (e.g. offer a discount on the sale of a financial product to a person who buys a life insurance product).

12. I will not act as a life insurance agent until a licence is issued.

13. Complete only for a renewal after February 1, 1997.

I completed 30 hours of continuing education related to the technical aspects of life insurance, in the two-year period _____________________ (date of expiry of current licence).



CHAPTER 3

TRANSFERRING A LEVEL I LICENCE

If a Level I agent decides to change the insurer sponsoring his/her licence between renewal periods, he/she may, provided he/she finds a new insurer to sponsor his/her licence. This is called a licence transfer. There are no licensing decisions required by FSCO to process a change in sponsor. It is only recording a fact.

3.1 Responsibilities of Agent/Applicant

Before a transfer can be done, the agent’s existing licence must be terminated by the existing sponsor and a ”Notice of Termination” filed with the Commission. This “suspends” the licence and prohibits the person from acting as an agent. After the termination, the applicant submits a “Life Insurance Agent Application” form, ensuring sections A and C are fully completed, and encloses a cheque in the amount of $50.00, payable to the “Minister of Finance”. An applicant may not act as an agent until the transfer licence has been issued by the Commission.


The existing sponsor of the agent must complete a “Notice of Termination” and forward this form to the Commission. This form is only used for recording termination of sponsorship. Reporting unsuitable agents is discussed in Chapter 11.

The new sponsor must complete part C of the application form, and keeping in mind the Duty of Care provisions, communicate with the previous sponsor and determine whether or not the agent’s record is satisfactory. This box must be completed on the application, and a duly authorized representative of the new sponsoring insurance company must sign the application. FSCO will record the change in sponsorship even if the previous sponsor did not meet the requirement to file a Notice of Termination.

Further details regarding terminations are found in Chapter 10, and a sample “Notice of Termination” can be found at the end of this chapter.

1 March 1999

Financial Services Commission des Commission services financiers of Ontario de l’Ontario

Notice of Termination of Agent Sponsorship To be used when notifying the Superintendent, Financial Services Commission of the termination of an insurance

agent’s sponsorship

Name of Agent Effective date of termination

Licence Number

Type of Licence to be terminated (check only box per notice):

“ Life Level 1 (including accident and sickness)

“ Accident and Sickness

“ General

Name of insurer terminating sponsorship

Date

Signatory Official

Life Level II Agents: Level II agents not sponsored. Please do not submit a termination when a Level II agent’s contract has been cancelled.

Termination Date: The Superintendent must be notified within 30 days of termination of sponsorship. Insurance Act, Section 393(7).

Notice to Agent: Please provide a copy of this Notice form to any agent whose sponsorship is being terminated.

February 1999 FSCO-AA3

CHAPTER 4

OBTAINING A LEVEL II LICENCE

Level I agents can only renew a Level I licence once. After that time Regulation 663 prohibits renewal a second time of the Level I licence and the agent will not be licensed.

4.1 Agent Notification

All agents receive from FSCO, a notification of the need to obtain Level II status on the first renewal of their licence.

4.2 Sponsor Notification Listing

As a service, FSCO provides sponsoring companies a notification listing of sponsored agents who need to attain Level II status. This listing is sent by FSCO to sponsoring companies eight months in advance of the agent’s needing to fulfil the requirements. Companies should ensure that any agent shown on their listing is advised as soon as possible that his/her time to meet the requirements is nearing. This list is only a guide because agents may be unsponsored at the time the list is prepared, and may subsequently obtain a sponsor.


Any Level I agent wishing to apply for a Level II licence, should contact his/her sponsoring company for an application form.

4.4 Fees

There is no application fee to change the status of a licence from Level I to Level II. Of course, if the application is made at the time of licence renewal, the licence renewal fee must be paid.

4.5 Qualification Criteria

A Level I agent may only apply for Level II status after he/she has been licensed for a minimum of two years in Ontario.

An agent must also have satisfied one of the following criteria, in order to apply for Level II status:

a. successfully completed the Level II exam, or one of the following equivalencies; b. successfully completed all 3 parts of the CAIFA Insurance and Financial Advisors

Training Course (IFATC 101, 102, and 103); or c. successfully completed the CAIFA Membership exam; or d. have a Fellow of Life Management Institute (FLMI) or Fraternal Insurance

Counsellor (FIC) designation; or

1 March 1999

e. meet the grand-parenting option*.

* only applicable until April 1, 1999

CAIFA and l’AIAPQ have advised FSCO that the following l’AIAPQ courses are equivalent to IFATC parts 1, 2, and 3: l’AIAPQ Level I, Level II and Level III; Registered Life Underwriter; and the MQE. Completion of parts 1 & 2 of Cours de Formation Professionnelle + Planificateur Financier certificate also exempts an agent from the Level II examination.

a. Level II exam

An agent wishing to attempt the Level II exam, should contact the licensing department at the head office of his/her sponsoring insurer. The examination syllabus is included at the end of this chapter. FSCO accepts the Level II examination administered by CAIFA, and does not administer its own examination. Further information may be obtained by contacting CAIFA at (416) 444-5251 or 1(800) 563-5822. FSCO is not in the business of agent training and is not in a position to endorse any commercially available examination preparation program.

b. 3 Part CAIFA Program

The 3 part CAIFA program, consists of IFATC 101, 102 and 103. Please contact CAIFA for further details.

e. Grand-parenting Option

A one-time grand-parenting option is provided for agents who had an active Ontario life insurance agent’s licence on February 1, 1995, and who continuously held a valid life agent’s licence for ten consecutive years. This means ten consecutive complete years of holding a licence for the period ending on or before the date of application for Level II status. Periods when the agent’s licence was suspended because of lack of sponsorship count, since the licence still existed even though the agent could not sell.

The grand-parenting option has expired for many agents, and the period will expire for the rest by April 1, 1999, since the ten year requirement had to be met by the date of expiry of the first licence renewal after February 1, 1995. (Note the extension of licenses existing on April 1, 1995, by the payment of the fee billing does not count as a renewal and therefore, gave agents more time). An agent may apply to change his/her status once he/she has achieved this requirement.

4.6 Exemptions

There is no authority under the law to grant exemptions for meeting the Level II requirement or allowing additional time to meet the Level II requirement. Everyone who wishes to remain licensed as a life insurance agent, MUST move to Level II. This is a requirement of the law.

2 October 2000

4.7 Address Changes

It is the responsibility of a Level II agent to keep the Commission informed of his/her current mailing address. Address changes between renewal periods should be made by submitting a “Life Insurance Agent Application”, and ticking off the box Notice of Change in: Mailing Address, and completing Part A.

4.8 Holding a Level II Licence While Out of the Country

A Level II agent is permitted to maintain and renew his/her Level II licence while he/she resides outside of Canada, providing that: he/she has an Ontario address as residence; he/she complies with the Insurance Act; he/she renews his/her licence on time; he/she completes his/her required continuing education hours; and he/she maintains the required errors & omissions insurance coverage.

This provision only applies to Level II agents.

3 October 2000

Level II - Syllabus

The following are the 16 topics covered in the Level II licensing examination.

Approximate Average number percentage

Topics of questions of exam

1 Accident & Sickness/ 4 8 disability income insurance

2 Accounting 2 4

3 Business insurance 4 8

4 Economics 4 8

5 Education planning 2 4

6 Estate planning/risk management 3 6

7 Ethical conduct/agent compliance 3 6

8 Government benefits 2 4

9 Group insurance 2+ 5

10 Life insurance 5 10

11 Money management 4+ 9

12 Personal financial planning 2 4

13 Retirement planning — annuities 1 2

14 Retirement planning — private and public pension plans 2 4

15 Securities/segregated funds 4+ 9

16 Taxation 5 10

_____ _____ 50 100%

1

Topic Content

Accident & Sickness/Disability Income Insurance Types of individual disability income insurance contracts, amounts, and contract provisions. Business uses of individual disability income insurance, the disability buy-sell agreement.

Accounting Financial Statements.

Business evaluations (for the purpose of funding buy-sell agreements with insurance).

Business Insurance Forms of business organizations.

Problems caused by the death or disability of a business owner.

Business insurance and the mechanics of a buy-sell agreement.

Insurance for key personnel.

Economics Microeconomics and individual decisions in the market place.

Macroeconomics and the national economy.

Financial markets where funds are transferred from lenders to borrowers.

The changes in the value of money over time and their effects on investment decisions.

How economic cycles affect wealth accumulation, investment, retirement and estate planning.

Education Planning The education planning process.

Appropriate savings, investment and insurance strategies for achieving education objectives.

Estate Planning/Risk Management Estate planning techniques, tools and concerns.

The estate planning process within the wider context of risk management and financial planning.

The role of insurance in estate planning and risk management.

Ethical Conduct/Agent Compliance Code of Ethics.

Agent’s responsibility under the law.

Government Benefits The Canada and Quebec Pension Plan, Old Age Security, Employment Insurance, Workers’ Compensation and the various provincial health insurance plans and benefits.

Group Insurance Employee group insurance principles, provisions and benefits.

Life Insurance Types of contracts, contract provisions, dividend and settlement options, riders, etc. Beneficiary provision and creditor protection.

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Money Management Inflation.

The credit system and managing debt.

Setting objectives, determining personal net worth and managing cash and expenditures.

The role of money management in the total financial planning process.

Personal Financial Planning The importance of financial planning, the financial planning process and the role of the financial

planning professional.

The role of the insurance specialist in the financial planning process.

Retirement Planning - Annuities Types of annuities and their role in retirement planning.

Retirement Planning - Private and Public Pension Plans Types of registered pension plans.

The role of private and government pension plans in retirement planning.

Securities/Segregated Funds Investment products offered by the three financial markets - money, bond and equity markets.

The concept of risk versus return.

Investment strategies to achieve financial goals.

Insurance companies’ segregated funds and guarantees.

Taxation Personal income tax, deductions and tax credits.

The tax status of life and disability income insurance, group benefits, retirement products,

government plans, investment gains and losses, personal-use assets, etc.

Note that the number of questions often reflects the amount of relevant and testable material under a given topic.

Many questions also do not fit neatly under one topic.

For example, life/A&S insurance is an equally important component in retirement and estate planning. Similarly, taxation has important implications on money management, insurance, investment, education, retirement, estate and financial planning.

Thus, for a better understanding of insurance, the student should think of how insurance fits within the context of the total financial planning process and, conversely, how each step of the financial planning process can in turn affect insurance planning and other steps in the financial planning process.

3

CHAPTER 5

OBTAINING A GENERAL OR ACCIDENT & SICKNESS AGENT’S LICENCE


This chapter does not apply to life agents. Life agents must pass the accident & sickness examination in order to obtain a life agent’s licence. This chapter only applies to agents who want to sell accident & sickness insurance (but not life insurance) and/or general insurance.

5.2 Sponsorship

In order to submit an application to be licensed as a general or accident & sickness insurance agent, an applicant must first locate an insurance company that is willing to enter into an agency contract with the applicant/agent and certify to the Financial Services Commission of Ontario (FSCO) that the applicant/agent is suitable. This is known as sponsorship. FSCO does not provide names of potential sponsors.

All general and accident & sickness insurance agents must be sponsored by an insurance company in order to obtain a licence and keep that licence. If at any time either party chooses to sever the relationship, an agent’s licence still exists, but is “suspended”, meaning that he/she is no longer entitled to sell insurance or act as an agent in any way until a new sponsor is found and the licence reactivated by FSCO. Further details regarding this topic are covered in Chapter 10, which deals with termination of sponsorship.


Sponsoring insurance companies are required to investigate the background of any applicant or agent they sponsor. This means determining that the person is of good character and reputation; has an appropriate educational background to do the job; and is in all respects a suitable person to receive a licence.


Application forms are available from the head office of any insurance company that sells general or accident & sickness insurance. The current form in use is entitled “Application for Insurance Agent’s Licence”. Sponsoring companies may obtain additional forms from FSCO. A sample of the form is located at the end of this chapter.

All questions on the application form must be answered completely, or the application will not be processed. Be sure to indicate which type of licence you are applying for. Incomplete applications will be returned to the sponsoring company with a letter identifying the problem. The applicant will also receive a copy of the letter.

1 March 1999

To avoid unnecessary time delays, the application should be read carefully and be fully completed, attaching all of the requested information. If a prospective agent has questions concerning a question on the application, his/her sponsoring company should be able to assist.

Applications must be signed by a Commissioner of Oaths or a notary public. All information on the application form will be reviewed by Commission staff, and a background check for criminal convictions will be requested and an applicant’s name will be searched. Please ensure that the agent’s full legal name is specified on the application. To avoid delays in processing, it is imperative that applicants answer all parts of question “15" completely and truthfully, and attach all requested supporting information.

If an applicant must use a photocopy of the application form, the Commission will accept it. However, all information and signatures on the form must be original.

5.5 Fees

The application fee for the two year General or Accident & Sickness agent’s licence is $150.00. Cheques should be made payable to the “Minister of Finance”. The licence will expire exactly two years after the issue date, but may become “suspended” at any time prior to expiry.


No application for licensing will be accepted until after an agent has passed the qualifying examination or has documentation to support an examination equivalency. Any applications made by prospective agents who do not meet the examination criteria will be returned.

In order to become licenced as a general insurance agent or an accident & sickness only insurance agent, an applicant must first successfully pass the applicable qualifying examinations for general or accident & sickness insurance. To pass, the applicant must achieve a mark of 75% or higher on the examination. FSCO does not conduct or arrange the examination process. The current cost to take the exams is $60.00 per attempt.

Examinations for general insurance are scheduled and coordinated through the Insurance Institute of Ontario, at their offices at 18 King Street East, 6th Floor, Toronto, Ontario. Further information may be obtained directly from the Insurance Institute of Ontario by calling 416-3628586, extension 260. There is no toll free number.

Examinations for accident & sickness insurance are scheduled and coordinated through the Canadian Association of Insurance and Financial Advisors (CAIFA), at their offices at 41 Lesmill Road, Don Mills, Ontario. Further information may be obtained directly from CAIFA by calling 416-444-5251 or 1-800-563-5822.

2 March 1999

http:$150.00

Examination results are only valid for six months, after which time an applicant must rewrite or provide a “detailed” description of what he/she has done to maintain the level of knowledge tested in the examination. Accordingly, any application for licensing must be submitted with current examination results, or detailed description, otherwise it will be returned to the sponsoring company.

Examination results must be originals, not a photocopy. This is in order to avoid fraudulent altering of documents.


Persons applying for a general or accident & sickness only licence may be exempt from the qualifying examinations under certain circumstances. A full listing of these may be found in section 5 of the detailed instructions attached to the application form, a copy of which is located at the end of this chapter.

Proof of meeting an examination equivalency must be attached to the licence application, otherwise it will be returned.

FSCO’s application processing and approval target time is five days from the date the application is received at the Commission. This turnaround time only applies to correctly completed, problem free applications, which are submitted with all of the required supporting documentation, correct fee payment and examination results or exam equivalency documentation.

Once a licence has been issued, it is mailed to the sponsoring insurance company. A listing of all licences issued and all currently licensed agents is available on the FSCO website, which can be found at www.fsco.gov.on.ca.

Any questions regarding the status of an application should be directed to the licensing department at the head office of an applicant’s sponsoring insurance company.

5.8 Licence Restrictions

It is not permitted to hold both a Registered Insurance Brokers of Ontario (RIBO) licence and a general insurance agent’s licence at the same time.

5.9 Licence Transfers

If a general or accident & sickness only agent decides to change the insurer sponsoring his/her licence between renewal periods, he/she may, provided he/she finds a new insurer to sponsor his/her licence. This is called a licence transfer.

3 March 1999

Before a transfer can be done, the agent’s existing licence must be terminated by the existing sponsor and a “Notice of Termination” filed with the Commission. This “suspends” the licence and prohibits the person from acting as an agent. After the previous licence has been terminated, the applicant’s new sponsoring insurance company submits a written request to the Commission requesting transfer of the applicant’s licence, and encloses a cheque in the amount of $50.00, payable to the ”Minister of Finance”. The applicant making the transfer request must have also signed their name and dated the written request being made from the new sponsoring insurance company. An applicant may not act as an agent until the transfer licence has been issued by the Commission.

FSCO will record the change in sponsorship even if the previous sponsor did not meet the requirement to file a Notice of Termination.

Further details regarding terminations are found in Chapter 10.

4 October 2000


APPLICATION FOR INSURANCE AGENT'S LICENCE

General Instructions (Please tear off from application form)

1. This form is to used by an individual seeking licensing as an insurance agent in the province of Ontario.

2. This form may also be used by an individual seeking licensing on a non-resident basis in the province of Ontario.

3. Please print, using a pen and answer all the questions fully. If there is not enough space on the form for your answers, please attach a signed statement. This statement must be typed and properly sworn or affirmed before a commissioner for taking affidavits or a notary public.

4. You may need to seek advice from your insurance company sponsor or from a legal adviser in completing this form.

5. It is an offence under the Insurance Act to provide false, misleading or incomplete information on this application and/or any attachments, and doing so may be sufficient grounds under the Insurance Act to reject the application or revoke a licence.

6. You must sign the application in the presence of a commissioner for taking affidavits or a notary public who must also sign. Otherwise it will be returned and no licence processing can commence. The application must also contain the sponsoring company's name and be signed by an authorized representative of that company on the appropriate area of the form.

7. All cheques and money orders must be made paying to "THE MINISTER OF FINANCE".

Version française disponible. (99-02)

DETAILED INSTRUCTIONS FOR COMPLETING AN APPLICATION FOR AN INSURANCE AGENT'S LICENCE

Type of Insurance: If you select

Accident & Sickness Only, you are able to sell only this type of insurance;

General, you are able to sell general insurance, (not including accident & sickness).

Only one choice may be selected per application form.

QUESTIONS:

1. Language of Preference

Applications are available in English or French.

2. Type of Licence Required

Select either:

Resident - If you are currently unlicensed, reside in Ontario, or on the Ontario/Quebec border in select instances, and you wish to sell insurance in Ontario. Those applicants wishing to obtain a "Resident" licence are required to successfully complete Ontario's licensing qualification examinations.

OR

Non-Resident - If you are currently licensed by another jurisdiction with which Ontario has a reciprocal agreement, and you wish to be licensed to sell the same type of insurance in the province of Ontario, a "Certificate of Authority" (also known as a "Non-Resident Endorsement") verifying your current resident licensing status must accompany your application. This certificate must be dated within the last three months. You are not required to write Ontario's qualifying examinations.

3. Additional Applications

Indicate any additional applications that you are submitting at the same time as this application. For example, if this application is for an accident & sickness licence, and if you have also submitted a second application for a general licence, you must indicate this in the are provided.

4. Applicant Information

Please provide your legal name, and all given names in full.

Date of birth: you must be a minimum of 18 years of age to hold an Ontario insurance agent's licence.

Gender: Information required in order to do background check.

Residence Address: Internal background check cannot be started without this information, and consequently

processing of your application will be delayed if not provided.

Business Address: Please provide if applicable. PLEASE NOTE: Your sponsor's head office address is not

considered your business address. Please leave this section blank if you have no business address.

(99-02) - i

5 . Examination Details

There are certain instances under which an applicant may be exempt from the qualifying examination(s). They include the following circumstances:

• Non-Resident applicants - Those persons residing outside of Ontario, licensed by other jurisdictions with which the Superintendent of Financial Services Commission has a reciprocal agreement;

• Non-Resident licensees, moving to Ontario - Those persons moving to Ontario and who, with the last year, have been licensed in another province may in most cases be exam exempt if they provide acceptable evidence of licensing and exam results from another province;

• Anyone who has previously held a valid Ontario insurance agent's licence of the type being applied for within one year of the date of receipt of this application.

• Chartered Life Underwriters (CLU) - exempt from Life and Accident & Sickness exams;

• Associates of the Insurance Institute of Canada (AIC) - exempt from general exam and possibly life exam, depending on courses taken;

• Fellow of the Insurance Institute of Canada (FIIC) - exempt from general exam and possibly life exam, depending on courses taken;

• Ontario Mutual Insurance Association (OMIA) - exempt from general insurance exam, but must apply within 90 days of passing exam administered by OMIA;

• Insurance Brokers Association of Ontario (IBAO) - exempt from life and accident & sickness exams, but must apply within 90 days of passing exams administered by IBAO;

• Community College Insurance Courses - passing of courses at some community colleges will result in exemption from examinations - must apply within 90 days of date of graduation from community college;

• Appropriate proof must be enclosed with your application to verify your exemption claim, otherwise an exemption cannot be granted.

6 . Years in Canada

If you have been in Canada for one (1) year or less, you are required to submit the appropriate documentation to verify your status, (i.e. Minister's Permit, Work Permit, or Permanent Resident Status). If the appropriate documentation is not submitted with the application, licensing will be delayed.

7 . Employment History

Include all employment over the past five years, including current occupation. If you have been a student within the past 5 years please indicate these periods. If you currently are, or were, a homemaker during that time, please indicate.

8 . Affi l iat ion

"Affiliation" in this case means operating under the corporate name of an insurance agency or other body. If you own or are employed by an insurance agency, you are required to provide the name of this agency, as well as the agency's sponsoring insurance company. Please note that the sponsor of your individual licence must be the same as the agency's sponsor. If you are affiliated with more than one agency, please provide the name(s) of the additional agencies and their sponsoring companies.

(2001-01)

- ii

9. Revocation and Suspension of Non-Insurance Licences

You must indicate whether or not you have ever been refused registration of a licence, or whether any such licence has ever been suspended, cancelled or revoked. If so, you must indicate when and where such activity occurred, and the circumstances surrounding the incident.

10. Insurance Licensing History

You must indicate whether or not you have ever been licensed, or applied for licensing as an insurance agent or broker in Ontario or elsewhere. If so, you must also indicate whether or not such licence was suspended or otherwise terminated, and provide full details.

11. Financial Company Affiliation

The Insurance Act prohibits persons who are officers or employees of deposit institutions from holding an insurance licence. You are required to disclose whether or not you are an officer, employee or agent of a loan corporation, bank, credit union, caisse populaire, finance or trust company, and indicate the nature of your relationship with same, and the name of the institution.

12. Other Activities

Generally speaking, insurance sales must be carried out on a full time basis and be your sole occupation. You are required to disclose any other business activity or occupation in which you propose to engage in addition to the selling of insurance.

13. Real Estate

If you are a real estate salesperson, your real estate broker must also have an insurance agent's licence of the same type for which you are applying. Where you are asked to insert the broker's name, it is the actual name of the person that is required, not the company, for example, Pat Smith, not XYZ Realty.

14. Additional Registrations

Any additional registration held must be indicated.

15. Offences Under the Law

Please carefully read the detailed instructions pertaining the this question that are found on the application form. A criminal record search is part of the regular screening process for all new applicants, and you name WILL be searched. Non-disclosure or any misrepresentation of your history of offences will result in significant delays in processing your application and may necessitate a public hearing, as well as possible charges under the Provincial Offences Act.

16. Civil Proceedings

You are required to provide full details in a sworn statement of any claim that was successfully made against you or any claim pending in any civil proceeding before a court or other tribunal that was or is based in whole or in part on fraud, theft, deceit, misrepresentation, forgery or similar conduct.

17. Judgement or Garnishment

You are required to provide full particulars in a sworn statement of any judgement or garnishment ever rendered against you or outstanding against you in any civil proceeding for damages or other relief relating to fraud, deceit, misrepresentation, forgery or similar conduct.

18. Bankruptcy

You are required to indicate whether or not you have ever been or are currently a party to bankruptcy proceedings. If you have answered "Yes", you must also indicate whether or not you have been discharged from the bankruptcy, and if so, provide the date of that discharge. If you have not yet been discharged, you must provide a copy of theAssignment of Bankruptcy or Receiving Orders, Statement of Affairs, and a signed explanation as to the circumstances of the bankruptcy.

If you have ever been or are now an officer, director, or majority shareholder of a business that has been declaredbankrupt or is currently a party to bankruptcy proceedings, please provide the date of the bankruptcy, information surrounding the circumstances of the bankruptcy, your involvement in the bankruptcy and current status.

- iii


APPLICATION FOR INSURANCE

AGENT'S LICENCE

For Department Use Only

Approved

Licence No.

Date Issued

Date Expires

The undersigned hereby applies for a licence to carry on the business of an insurance agent in the province of Ontario for (check only one of the following):

Accident & Sickness Insurance Only

General Insurance

and submits the following statements and answers to questions:

1. Language of Preference English French

2. Type of Licence Required Resident or Non-Resident*

*(Applications for Non-Resident licences must be accompanied by a Certificate of Authority issued by the insurance regulatory body from the jurisdiction where the applicant resides).

3. Additional Applications Are you applying for any additional insurance agent licences at this time? Yes No

If "yes", indicate type of additional licence(s) being applied for and name of sponsoring insurer;

4. Applicant Information (dd/mm/yy)

Last Name First Name Middle Initial Date of Birth

Gender: Male Female

Residence Address (Number and Street) (Apt. #) Business Address (Number and Street) (Suite #)

City and Province Postal Code City and Province Postal Code

Area Code and Phone Number Area Code and Phone Number

1

5. Examination Details

You must pass the relevant exam prior to submitting this application.

If you are requesting an examination exemption, please provide full details, including copies of accreditation, if applicable.

6. Years in Canada How long have you resided in Canada? years months.

7. Employment History

The following information constitutes full disclosure of your business activities, including any periods of self-employment and unemployment, for five years immediately prior to the date of this application.

Occupation Employer's Name and Address Start Date (mm/yy)

End Date (mm/yy)

8. Affiliation

Are you affiliated with an insurance firm or partnership, or are you an officer of a corporation transacting insurance?

Yes or No

If "Yes", give the name of such partnership, firm or corporation and provide detailed job description.

and the name of its sponsoring insurance company:

9. Revocation and Suspension of Non-Insurance Licences:

Have you ever been refused registration or a licence, or has any previous registration or licence ever been suspended, cancelled, revoked, under any legislation which required registration or licensing to deal with the public in any capacity (other than selling insurance) in any province, territory, state or country?

Yes or No

If "Yes", give full particulars, including date(s).

2

10. Insurance Licensing History

Have you ever previously applied for an insurance agent's or broker's licence in Ontario or elsewhere or are you currently registered? Yes or No

(i) If "Yes", where, when, with whom and license number?

(iia) If "Yes", have you ever been refused such a licence or had the licence suspended or terminated?

Yes or No

(iib) If "Yes", by whom and for what reason?

11. Financial Company Affiliation

Are you an officer, agent or employee of a loan corporation, bank, credit union, caisse populaire, finance or trust company? Yes or No

If "Yes", give the name of such loan corporation, bank, credit union, caisse populaire, finance or trust company and your relationship with same.

12. Other Activities

Will you engage in any business activity or occupation in addition to the selling of insurance?

Yes or No

If "Yes", state:

a) Name and nature of activity:

b) Position you will occupy in such activity:

c) Your annual salary or other renumeration or expense money:

d) The portion of your time you will devote to this acitivity:

3

13. Real Estate

a) Are you licensed as a real estate broker? Yes or No

If "Yes", give your registration number:

b) Are you licensed as a real estate salesperson? Yes or No

If "Yes", state broker's registration number, name and broker, and your registration number.

Broker Registration Number Brokers's Name Salesperson Registration Number

14. Additional Registrations

Mutual Funds Salesperson Yes or No

Registered Securities Representative Yes or No

Limited Market Dealer Yes or No

Registered Insurance Broker Yes or No

Mortgage Broker Yes or No

List any other business registrations:

15. Offences Under the Law

INSTRUCTIONS: Please read these instructions carefully.

A criminal record search is part of the regular screening process for all new applicants and your name WILL be searched. Non-disclosure or any misrepresentation of your history of offences will result in significant delays in processing your application and may necessitate a public hearing, as well as possible charges under the Provincial Offences Act.

Offences under federal statutes such as the Criminal Code, the Narcotic Control Act, the Food and Drugs Act, the Income Tax Act (Canada), the Immigration Act (Canada), the Competition Act, the Copyright Act constitute criminal offences and must be disclosed when answering this question. Please also note that where you have pleaded guilty or been found guilty of an offence under the above statutes, or any others, such offences must be reported even if you were given an absolute or conditional discharge. Where you have received an absolute discharge you are required to disclose it unless at least one year has passed since you were sentenced. In the case of a conditional discharge, you are required to disclose unless at least three years have passed since the date sentence was imposed.

You are not required to disclose any offence for which a pardon has been granted under the Criminal Records Act (Canada) and has not been revoked. Please note that pardons are not automatically granted merely because of the passage of time. An absolute or conditional discharge is not a pardon.

Please note as well, that you are not obligated to disclose convictions under either the Young Offenders Act or its predecessor the Juvenile Delinquents Act.

Offences also include contraventions of any provincial statutes such as the Highway Traffic Act, the Securities Act, the Provincial Offences Act, the Real Estate Business Brokers Act, the Mortgage Brokers Act, the Registered Insurance Brokers Act, and the Human Rights Code, 1981, or their equivalent in other provinces. Please note that you are not required to disclose findings of guilt for minor traffic infractions such as speeding or parking violations.

4

15. If you are in doubt as to previous dealings you may have had with any law enforcement agency or if you have questions about how to answer this question, you should contact your sponsor or a legal adviser.

a) Past Offences Involving Insurance

Have you ever pleaded guilty or been found guilty under any law of any province, territory, state or country of an offence relating to the business of insurance, the selling of policies or any other activities associated with insurance? Yes or No

If "Yes", give full particulars on a separate attached affidavit duly sworn before a notary public or commissioner for taking affidavits.

b) Past Findings of Guilt Involving Other Offences

Have you ever pleaded guilty or been found guilty under any law of any province, territory, state or country of an offence that is not disclosed in Part (a) above? Yes or No


c) Current Charges or Indictments

Are you currently the subject of a charge or indictment, under any law of any province, territory, state or country of contraventions, criminal or regulatory offences, or other conduct of the type described in (a) or (b) above?

Yes or No


d) Partnership or Corporate Offences or Current Charges or Indictments

Has any partnership or corporation, of which you are or were at the time of such event a partner, officer director or a majority shareholder, ever pleaded guilty or been found guilty, or is any such partnership or corporation currently the subject of a charge or indictment, under any law of any province, territory, state or country for contraventions, offences or other type of conduct of the type described in (a) or (b) above?

Yes or No


16. Civil Proceedings

Has any claim been successfully made against you, or is any claim pending, in any civil proceeding before a court or other tribunal in any province, territory, state or country that was, or is, based in whole or in part on fraud, theft, deceit, misrepresentation, forgery or similar conduct? Yes or No

If "Yes", give full particulars on a separate attached affidavit duly sworn before a notary public or

commissioner for taking affidavits.

17. Judgement or Garnishment

Has any judgement or garnishment ever been rendered against you or is any judgement or garnishment outstanding against you, in any civil proceeding, in any civil court in any province, territory, state or country, for damages or other relief in respect of fraud, deceit, misrepresentation, forgery or similar conduct?

Yes or No

5

If "Yes", give full particulars on a separate attached affidavit duly sworn before a notary public or

commissioner for taking affidavits.

18. Bankruptcy

a) Under the law of any province, territory, state or country have you ever:

Been declared bankrupt or made a voluntary assignment in bankruptcy? Yes or No

If "yes", please provide trustee's name and address, location of bankruptcy filing and current status leading up to the filing of bankruptcy.

If "Yes", have you been discharged? Yes or No

If you have been discharged, provide date of discharge: . If discharged within the last

two years, please provide us with a copy of the discharge.

If you have not been discharged, attach a copy of Assignment of Bankruptcy or Receiving Order,

Statement of Affairs, and a signed explanation as sto the circumstances of the bankruptcy.

b) If you are or were a partner, officer or majority shareholder of a partnership or corporation, has that partnership or corporation ever:

i) Been declared bankrupt or made a voluntary assignment in bankruptcy? Yes or No

ii) Made a proposal under any legislation relating to bankruptcy or insolvency? Yes or No

If answers to either part (i) or (ii) is "Yes"' give full particulars.

IMPORTANT

Providing false information or failing to provide complete disclosure in answer to all questions in this application may result in an investigation, a hearing and the rejection of your application for a licence.

It is an offence to directly or indirectly furnish false, misleading or incomplete information to the Financial Services Commission. The maximum fine is $100,000 for the first offence.

6

AFFIDAVIT

In the matter of the Insurance Act (Ontario) and in the matter of the foregoing Application for a (specify type of licence) Licence, I the undersigned, do hereby state and say:

1. That the statements, declarations and answers to the questions in this application are true, correct and complete.

2. That I have read and understood the instructions that are part of this form, and have also read and understood the additional detailed instruction booklet.

3. That I am familiar with the law of this province relating to the licensing of insurance agents and promise to abide by the laws and regulations contained therein, if a licence is granted to me.

4. That this application is not made for the express purpose of obtaining a licence to act as an insurance agent in respect of any particular risk or risks, or merely to obtain an agent's commission for insurance on my own life or property or on the lives or property of my family, employer or fellow employees.

5. That this application is made in good faith upon my own behalf and not on behalf of any person who is not competent to receive a licence and upon receipt of a licence pursuant hereto, I intend to hold myself out publicly and carry on business in good faith as an insurance agent.

6. It is understood that any licence issued may be revoked if the holder of the licence has made a material misstatement in the application for the licence.

Declared before me (Print name of Commissioner or Notary Public)

at the (City, town, village, etc.)

in the (Regional municipality, country, etc.)

this day of

Signature of Commissioner or Notary Public Signature of Applicant

(A commissioner for taking Affidavits or Notary Public)

Commissioners for taking affidavits are reminded about the provisions of the Commissioners for Taking Affidavits Act and in particular Section 9 therein that provides:

Every oath and declaration shall be taken by the deponent in the presence to the commissioner, notary public, justice of the peace or other officer or person administering the oath or declaration who shall satisfy himself or herself of the genuineness of the signature of the deponent or declarant and shall administer the oath or declaration in the manner required by law before signing the jurat or declaration.

7

CONSENT TO THE COLLECTION OF PERSONAL INFORMATION PURSUANT TO THE FREEDOM OF INFORMATION AND PROTECTION OF PRIVACY ACT, 1987

1. Notification

The legal authority for the collection of personal information by the Financial Services Commission (the Commission) is section 393 of the Insurance Act, R.S.O. 1990, c. 1.8, as amended and the regulations made thereunder.

2. Publication

Pursuant to Section 37 of the Insurance Act the Commission may publish any information considered to be in the public interest which may include the results of any hearings or prosecutions held under the Insurance Act.

3. Consent

I consent to the collection by the Commission of such personal information and such additional information about me as may be necessary for the Commission to obtain to complete or verify the information contained on the application form. The sources the Commission may contact and obtain information include those persons listed by me on the application form; policy forces (federal, provincial, municipal and foreign); federal or provincial agencies regulating insurance or other business activities; current or former employers; federal and provincial courts; foreign governments; financial institutions; the Registrar General; Employment and Immigration (Canada); and, social assistance agencies.

I furthermore acknowledge, and understand, that should I be the subject of a public hearing in respect of my application or as a result of my conduct as a licensed agent at any time in the future, the Superintendent may publish information concerning such hearing including: My name; the evidence introduced at the hearing; and the results of the hearing or of any subsequent appeal.

4. Please direct questions to: Agents and Adjusters Financial Services Commission 4th Floor, 5160 Yonge Street North York ON M2N 6L9 (416) 250-9209 --- Toll 1-800-263-0541

Signature of Applicant Date

Note: This consent form must be signed and dated in order for the application to be processed.

8

NOTICE OF APPOINTMENT OF AGENT BY SPONSOR COMPANY

NOTE: This section must be completed on behalf of the licensed insurer that is sponsoring the named agent applicant. An officer duly authorized by the sponsor company, must sign below.

Please note that

Applicant's name

is hereby sponsored and authorized in writing to act as an agent of

Name of insurer

and was recruited by a licensed/unlicensed Name of Individual Circle appropriate Choice

representative of the sponsoring company.

The sponsor company has investigated the record of the applicant and is satisfied:

1. That he/she is person of good character and reputation;

2. That he/she is possessed of an educational background that is appropriate to the responsibilities of an agent of the sponsor company, and

3. That the applicant is in all respects a suitable person to receive a licence.

THE ABOVE APPLICANT WILL NOT ACT AS AN AGENT UNTIL A LICENCE IS ISSUED.

If and when Sponsorship of this agent is terminated, written notice must be given to the Superintendent of Financial Services, within 30 days of such termination, together with the reasons for the termination, in accordance with Section 393(6) of the Insurance Act.

(Please Print) Name of duly authorized officer of sponsor insurance company

Title

Signature (Authorized Officer)

Date 19

Version française disponible

9

CHAPTER 6

OBTAINING AN INSURANCE AGENT’S CORPORATE LICENCE


The law governing life corporate agencies and general corporate agencies is different. Therefore, one section of this chapter deals with life and the other with general corporate agencies.


Please note the following areas in particular when completing either the life or general agent’s corporate licence application form:

.Companies may be licensed only in the corporate name as it appears on the Articles of Incorporation. Should an applicant wish the licence to include a style name, a copy of the Business Registration of said style name with the Ministry of Consumer and Commercial Relations must accompany the application.

.A complete copy of the Articles of Incorporation, including any subsequent Articles of Amendment must be provided.

.If any of the shareholders of the corporation are themselves corporations, the upstream ownership of the parent company must be provided.

.Regulation 663, section 1.1 of the Insurance Act states that “Where an application for a licence is made by a corporation, a separate application shall be made in the corporate name by any shareholder to whom has been issued or who is entitled to more than one-half the issued shares of the corporation.” In other words, if you own more than half of the shares of the corporation, you need to be licensed as well.

6.3 Fees

The application fee for the two year corporate licence is $400.00. Cheques should be made payable to the “Minister of Finance”. The date of incorporation is the licence renewal date.

6.4 Life Insurance Agent’s Corporate Licence Application Process

Application forms are available from the Financial Services Commission of Ontario (FSCO). The current form in use is entitled “Application for Life Insurance Agent’s Corporation Licence” (A33). A sample form is located at the end of this chapter.

1 March 1999

http:$400.00

All questions on the application form must be answered completely, or the application will not be processed. Incomplete applications will be returned to applicants with a letter identifying the problem.

To avoid unnecessary time delays, the application should be read carefully and be fully completed, attaching all of the requested information. Applications must be signed by a Commissioner of Oaths or a notary public. If an applicant must use a photocopy of the application form, the Commission will accept it. However, all information and signatures on the form must be original.

In add

Documents

Licensing Reference Guide - fsco.gov.on.ca€¦ · Welcome to the Financial Services Commission of Ontario (FSCO) Licensing Reference Guide. This guide has been designed as a working