The Financial and Consumer Services Commission (FCNB) announced that it has received ministerial approval to adopt new rules for licensing insurance intermediaries in New Brunswick. The regulator says the updates were needed following changes to the province’s Insurance Act. 

The updated licensing requirements for insurance intermediaries includes transitional provisions which provide detail for current licensees who will have their license types updated, and notably, a new framework for issuing adjusting firm, agency and managing general agency licenses. 

Additionally, there is a new licensing framework for restricted insurance representatives who sell incidental insurance products. Errors and omissions insurance, supervision requirements, prohibited activities, updated trust account requirements, education and experience requirements and eligibility for a two-year license are all also discussed in the document, Rule INS – 001 Insurance Intermediaries Licensing and Obligations. The associated rule being adopted, Rule INS – 002 Insurance Fees, outlines the non-refundable application fee information for all license types.    

“Insurers are also expected to communicate with all firms in their distribution networks to ensure the new licensing requirements for agencies, managing general agencies, adjusting firms and restricted insurance representatives are understood,” they write.

The new rules come into force on February 1, 2023 – applications may be submitted to the regulator’s licensing portal beginning on that day, as well. Agencies, adjusting firms and managing general agencies have up to 60 days to submit a completed licensing application while restricted insurance representatives’ license applications must be submitted within 90 days.