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The Insurance Council of Manitoba (“ICM”) is seeking
comments with respect to proposed amendments to licensing of
insurance intermediaries and licensing fees. The proposed
amendments include the introduction of corporate licensing fees in
anticipation of the future implementation of corporate licensing
and changes to existing licensing fees.
ICM signals new license for corporate entities
On March 7, 2022, the ICM issued a bulletin, Proposed Regulatory Amendment to enhance
consumer protection (the “ICM
Bulletin”).
While Manitoba’s The Insurance Act (“The
Insurance Act”) contemplates that licenses may be issued
to corporations and partnerships, that has not been the on-going
practice. Currently, corporations or partnerships
(“firms”) employing insurance intermediaries do not
require insurance licenses. ICM only requires that firms register
with the Manitoba Companies Office and appoint an operating agent
to oversee individual intermediaries licensed with the firm.
The ICM Bulletin includes proposed fees for firm licenses. The
ICM acts on authority delegated to it by the Superintendent of
Insurance pursuant to The Insurance Act. The ICM has
stated that these fees are proposed “with the anticipation
of the future implementation of corporate licensing.”
The ICM has not provided any details or timeframe with respect
to the implementation of “corporate licensing.” It is
also not clear whether “corporate licensing” will apply
to partnerships.
The implementation of corporate or entity licensing would align
with the approach to entity licensing in most other provinces and,
most recently, the Yukon. For details surrounding new insurance
entity licenses in the Yukon, see our commentary: New licensing requirement for corporations and
partnerships conducting business in the Yukon.
The consultation: Adjustment to fees
The ICM Bulletin also announced a consultation on changes to the
Insurance Agents and Adjuster Fees under
Regulation 73/93 under The Insurance Act.
With the exception of the restricted insurance agent fees,
introduced in 2014, the fees set out in Regulation 73/93 to The
Insurance Act were last updated in 2004. The proposed changes
are intended to accurately reflect the actual cost and effort of
processing applications for licenses and examinations.
In some cases, ICM proposes reduced fees for administrative
services such as producing certificates of authority and
transferring or amending a license. In most other cases, including
fees for licenses, fees will increase. For example, licenses issued
to individuals are proposed to change between approximately 8 per
cent and 120 per cent, depending on the license category.
No changes are proposed currently for restricted insurance agent
license fees.
The consultation process and submitting feedback
The ICM’s consultation will be open until May 6, 2024. The
ICM has invited written feedback and submissions to the
consultation via e-mail to licensing@icm.mb.ca.
Read the original article on
GowlingWLG.com
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