NB commission proposes restricted licensing for incidental insurance salesBy Kate McCaffery | December 03 2019 10:31AM
The New Brunswick Financial and Consumer Services Commission, insurance division, released a consultation paper this week proposing a restricted licensing regime for incidental insurance sales – insurance that is sold in conjunction with the sale of other products or services.
The New Brunswick Insurance Act currently prohibits anyone from acting as an insurance agent or broker without a license.
The commission proposes to amend the act to permit and regulate the incidental selling of insurance through a restricted insurance licensing regime similar to regimes adopted in Alberta, Saskatchewan and Manitoba. Incidental insurance would include insurance products being offered by automobile dealers, banks, credit unions, mortgage brokers and retailers. The proposed changes would allow the Superintendent of Insurance to issue a restricted insurance license to certain businesses that would allow employees to offer insurance without holding an individual insurance license.
The consultation paper, entitled Consultation Paper 2019, Incidental Selling of Insurance Restricted Insurance Licensing Regime, discusses the different eligible business types which could obtain a restricted license and examines the classes and types of insurance it proposes to allow restricted license holders to sell. It proposes licensing requirements, including a company’s obligation to appoint a designated representative who is responsible for supervising the insurance activities, and spells out the obligations insurers have to ensure that those selling its product are knowledgeable and competent.
The paper also discusses tied selling, disclosure requirements, and cooling off periods for consumers who wish to rescind their insurance contract after purchase. Stakeholders are encouraged to comment on the proposals, in writing, on or before Jan. 31, 2020.