When and why did brokers seperate from other licensed sales people in Ontario?
- October, 1981
- felt their services were better
- wanted to better serve public with less government involvement
What is the superintendent of insurance?
- FSCO (financial services commission of ontario)
- provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates
What is RIBO?
- Registered Brokers of Ontario
- self-governing and self-supporting
- represents for more than one insurer
- licensed broker
What does RIBO regulate?
- the licensing
- professional competence
- ethical conduct
- insurance related financial obligations of insurance brokers like trust funds, coverages, error and omissions insurance
What does the RIBO governance consist of?
RIBO council - 9 elected and 4 public members who are appointed by the lieutenant governor
- acts as board of directors
What 3 committes does the council work with?
1) qualification and regulation
2) complaints
3) discipline
- pull license/pay penalties
What does a broker do?
- sell general insurance
- represent the client
- can represent more than 1 company
- negotiates contract
- self regulate license, code of conduct, and standards
What are broker qualifications?
- good character
- attained age of majority
- has not been convicted of any offence which renders him unfit
- satisfies educational and experience requirements
- complied with provisions of the regulation
- complies with continuing education
- ONLY BUSINESS IS AS AN INSURANCE BROKER
What is included in the certificate of coverage?
shall provide a certificate of coverage within 21 days to insured
- name and address of insured
- description of coverage
- full name of each insurer
- amount of insurance
What is required for the fees for service?
- must disclose to customer the fee being charged in addition to premium for insurance
- normal income is from commissions which is a % of premium
What is the RIBO code of conduct?
- competent
- conscientious, dilligent, efficient
- candid and honest
- conduct with courtesy and good faith
- encourage public respect for brokers
- integrity
- hold info in strict confidence
- make services available to the public
- maintain integrity of brokers
- not allow outside interest to interfere
- not charge any fee not disclosed
- prevent unauthorized practice
List RIBO misconduct
- acting as an agent
- acting as a principal broker without appropriate education
- being convicted of a criminal offence
- coercing
- false misleading statements, misrepresenting policy
- fail to comply with act
- failure as a principal broker to supervise employees
- inducements
- inconsistent with code of conduct
- incomplete policy comparison
- misconduct
- providing false info
- rebating
- referral fees
- using wrong name
- unreasonable delay in claims
- solicitation not compatible with honour and dignity
List trust account, capitalization and insurance requirements.
TRUST FUNDS
- must be deposited within 3 banking days
- cheques must show “trust funds”
- can’t keep trust account in your own name (seperate bank account)
MINIMUM CAPITALIZATION
- sole proprietor $2,500
- corporation/partnership $5,000
INSURANCE
- errors and omissions $1,000,000
- fidelity bond $100,000
List filings and fines.
Position reports (twice per year)
- within 90 days of fiscal year end
- within 9 months of fiscal year end
Fines
- $25,000 for corp/partnership
- $5,000 for individuals
