The Insurance Council of British Columbia (ICBC) is consulting on rule changes to support the implementation of the Restricted Insurance Agent Regulation.
The new regulation, announced by the B.C. government in December, outlines the businesses that will require a restricted insurance agency licence in order to sell certain insurance products. It’s set to take effect Jan. 1, 2027.
To support the new licensing regime, the regulator plans to replace the current restricted travel insurance agency licence with a restricted insurance agency licence for 18 non-insurance business types, including non-travel businesses that previously did not require a licence.
Businesses affected under the proposed rules include mortgage brokers, deposit-taking institutions and car and farm equipment dealers that sell insurance incidental to their ordinary business. This includes credit protector insurance to pay out a loan balance in case the borrower dies, loses their job or falls ill. Licensees would need to represent at least one insurance carrier to hold a restricted licence.
The restricted travel insurance agency licence would be phased out by Dec. 31, 2027, giving impacted travel agencies one year to transition to the new restricted insurance agency licence.
As well, ICBC is proposing to tighten restricted licence renewal requirements. Licensees currently only need to confirm meeting continuing education as well as errors and omissions insurance requirements at renewal. Under the proposed rules, they would also need to confirm the name and contact information of the designated representative, number of staff selling insurance and that their licence categories are still accurate.
Further, the ICBC proposes setting the maximum application fee at $1,000 for the restricted agency licence, but late fees will apply.
The consultation is open until April 27. Members of the public can provide feedback by email or through an online form. The ICBC will consider all feedback and forward all contact information to the provincial finance minister.