CLHIA updates G19

By The IJ Staff | November 22 2018 11:30AM

Photo: Freepik

The Canadian Life and Health Insurance Association (CLHIA) has updated the content of its G19 disclosure package to be used by group retirement and group benefit advisors following consultations with an advisors.

“Our industry appreciates the commitment and assistance of the group advisor community in helping us develop an approach to compensation disclosure that works for all stakeholders,” said CLHIA president and CEO Stephen Frank. “We remain committed to working closely with advisors to ensure that the industry is treating customers fairly and delivering the best suite of products and services at a fair price.”

In the coming weeks, the CLHIA will revise the guideline and then further engage the advisor community on the implementation details. 

What needs to be disclosed

The updated G19 says advisors will disclose both the per cent and dollar value of direct compensation, including the dollar value for lump-sum payments like transfer bonuses. Any indirect compensation received through incentive programs will also be disclosed, but a dollar or percentage value will not be provided. Also to be disclosed is in-kind compensation, such as a financing arrangement between the advisor and the insurer when commission advances or loans exceed $5,000 per advisor per year.

Disclosure of the new G19 approach will take place for new group retirement sales beginning July 1, 2019 and annual compensation disclosure to contract holders to begin in 2020.

For group benefit advisors, direct compensation for new sales will be disclosed to contract holders beginning January 1, 2020, and renewal compensation disclosure to contract holders will begin in 2021.

The 2020 CSC TV show

Prospecting Power:
Invest in your future

Watch & learn now!

This content is available until December 31, 2020

30 leading companies offers you tools and advice in the FREE Industry Showcase section

  • New products
  • Webinars
  • Sales tools
  • And more
Visit the industry showcase
Related topics …