The Financial Services Commission of Ontario says that it will accept the completion of the new Life Licence Qualification Program’s course and examination as an optional equivalency for the existing Level I and Level II examinations, effective June 1.

FSCO notes that Canadian regulators and various stakeholders in the life insurance industry have been working to harmonize and update the standards for life insurance agent proficiency. The new standards that have been developed are known as the LLQP, and involve the completion of a mandatory pre-licensing course, an examination and a one-step licensing system. In most provinces and territories, regulators have agreed to introduce the LLQP course and examination to the market on an optional basis to start.

Regulators agreed that the LLQP would be optional for a period of not less than 90 days. They are currently working to have regulations or bylaws put into place where they are required. Governments will decide whether and when to make the regulation or bylaw changes needed to make the LLQP mandatory.

This Optional Equivalency Period will provide the insurance industry an opportunity to gain experience with the LLQP course and examination and to share those experiences with regulators. During the period, the Committee to Co-ordinate Implementation of the LLQP will come to an end and a transition will occur to a new committee to be known as the LLQP Integrity Committee. This committee will be responsible for the ongoing development and maintenance of the examination questions database and will advise on operational matters related to the examination process.

The regulators also invite the Canadian insurance industry to form a committee to provide advice on the impacts of the LLQP and any operational concerns related to the LLQP. Individuals, companies, or associations who wish to be part of an industry advisory committee should notify Grant Swanson, FSCO’s director of licensing and compliance and chair of the Co-ordinating Committee, who will put them into contact with each other so that they can form a committee. This committee will provide its advice to the Canadian Insurance Services Regulatory Organizations and the Canadian Council of Insurance Regulators.