CAILBA aligns toolbox with new standardsBy Susan Yellin | February 24 2015 09:00AM
The Canadian Association of Independent Life Brokerage Agencies (CAILBA) has had a major rewrite of its compliance toolbox to align it with new standards coming out in the life insurance industry.Arnold Scheerder, compliance officer with MGA R.G. Packman & Associates and compliance chair for CAILBA, said the updated toolbox will ensure MGAs are equipped with information to ensure advisors comply with industry standards and regulations.
The toolbox went into effect on Jan. 1, and consulting sessions and webinars will take place over the next few months, said Scheerder.
The update was necessary following the recent release of a standardized set of compliance practices for MGAs released by the Canadian Life and Health Insurance Association and CAILBA.
Scheerder said MGAs will find the toolbox especially handy as it comes equipped with checklists and templates. “They will ensure you can adhere to regulatory requirements as well as your contractual requirements with insurers,” he said.
Updated in the toolbox is the CLHIA Standardized MGA Compliance Review Survey. As well, there are reorganized tools and templates required to meet the new guidelines, particularly a mandatory advisor screening questionnaire and a screening confirmation request that will allow MGAs to go to insurance companies for information on advisors before they contract with them.
Scheerder said that while CAILBA took a large role in putting together the new set of compliance guidelines, it does not mean the organization will take on a compliance role.
“I wouldn’t call it a larger compliance role,” said Scheerder. “I would call it a better provider of requirements for MGAs so they can meet their compliance requirements. I don’t see CAILBA as a regulator or a self-regulator…that’s not CAILBA’s objective.”