Part 4
Transitional Provisions, Repeals,
Expiry and Coming into Force
37,38 Transitional
39 Repeal
40 Expiry
41 Coming
into force
Interpretation
1(1) In this Regulation,
(a) “accident
and sickness certificate” means a certificate of authority to act as an
accident and sickness insurance agent;
(b) “Act”
means the Insurance Act;
(c) “business”
means a body corporate, partnership or sole proprietorship, but does not
include an insurer;
(d) “conflict
of interest position” means a situation where an insurance agent or an adjuster
has an incentive to act other than in the best interest of the client;
(e) “former
Insurance Act” means the Insurance Act
(RSA 1980 cI‑5);
(f) “freight
forwarding company” means a corporation that carries on business offering
freight forwarding services, including services related to the carriage,
consolidation, storage, handling, packing or distribution of transported goods;
(g) “general
insurance” means any class of property and casualty insurance, other than
accident and sickness insurance;
(h) “general
insurance agent” means an insurance agent for general insurance;
(i) “general
insurance certificate” means a certificate of authority to act as a general
insurance agent;
(j) “individual”
does not include an individual who is the sole proprietor of a sole
proprietorship;
(k) “life
insurance certificate” means a certificate of authority to act as a life
insurance agent;
(l) “personal
information” means information about an identifiable individual but does not
include the name, title, business address or business telephone number of the
individual;
(m) “property
and casualty insurance” means any class of insurance other than life insurance;
(n) “restricted
certificate” means a restricted insurance agent’s certificate of authority
issued under section 454 of the Act;
(o) “sales
finance company” means a corporation, other than a financial institution, that
provides consumer loans, and, for the purposes of this Regulation, a
corporation that provides or arranges to provide credit;
(p) “travel
insurance” means insurance provided to an individual
(i) in respect of a trip by the individual away from the place where
the individual ordinarily resides, without any individual assessment of risk,
against
(A) loss that results from the cancellation or
interruption of the trip,
(B) loss of, or damage to, personal property
that occurs while on the trip, or
(C) loss that is caused by the delayed arrival
of personal baggage while on the trip,
or
(ii) in respect of a trip by the individual away from the province in
which the individual ordinarily resides,
(A) against expenses incurred while on the trip
that result from an illness or the disability of the individual that occurs on
the trip,
(B) against expenses incurred while on the trip
that result from bodily injury to, or the death of, the individual caused by an
accident while on the trip,
(C) whereby the insurer undertakes to pay one or
more sums of money in the event of an illness or the disability of the
individual that occurs on the trip, or of bodily injury to, or the death of,
the individual that is caused by an accident while on the trip,
(D) against expenses incurred by the individual
for dental care necessitated by an accident while on the trip, or
(E) in the event that the individual dies while
on the trip, against expenses incurred for the return of that individual’s
remains to the place where the individual was ordinarily resident before death,
or for travel expenses incurred by a relative of that individual who must travel to identify that
individual’s remains.
(2) In
subsections (3) and (5),
(a) “creditor’s
group insurance” means insurance effected by a creditor whereby the lives or
well‑being or the lives and well‑being of a number of its debtors
are insured severally under a single contract;
(b) “group
travel insurance” means travel insurance effected by an entity named pursuant
to section 454 of the Act.
(3) The
following are prescribed contracts of group insurance for the purposes of the
definition of insurance agent under section 1(bb)(v) of the Act:
(a) creditor’s
group insurance;
(b) group
travel insurance.
(4) Without
limiting the generality of section 5(1)(f) or (2)(d), an individual is deemed
to be in a position to use coercion or undue influence in order to control,
direct or secure insurance business if the individual is an officer, employee
or independent contractor of a deposit‑taking institution other than a
special purpose trust company within the meaning of the Loan and Trust Corporations Act or sales finance company, unless
the individual is acting under a restricted certificate.
(5) In
sections 14 and 15, “credit‑related insurance” means
(a) creditor’s
group insurance, or
(b) insurance
effected by a creditor against the risk of default by a debtor due to
involuntary loss of employment.
(6) In
Part 2, a reference to an Associate or Fellow of the Insurance Institute of
Canada, includes a Chartered Insurance Professional or a Fellow Chartered
Insurance Professional, as the case may be.
(7) Repealed AR 94/2006 s2.
AR 122/2001
s1;196/2005;94/2006
Part 1
Insurance Agents
Classes
and Levels of Certificates
of Authority
Classes of certificate
2(1) The
following classes of insurance agent’s certificates of authority are
established for individuals and businesses:
(a) life
insurance;
(b) accident
and sickness insurance;
(c) general
insurance.
(1.1) The
following levels within the life insurance class of insurance agent’s
certificates of authority are established for individuals:
(a) full;
(b) level
1.
(c) repealed
AR 94/2006 s3.
(1.2) The
following levels within the general insurance class of insurance agent’s
certificates of authority are established for individuals:
(a) level
1;
(b) level
2.
(2) Subsection
(1.1)(c) is repealed on February 15, 2007.
(3) A
holder of an insurance agent’s certificate of authority must comply with the
limits, restrictions, terms and conditions imposed on the class or level of
certificate of authority and may act as an insurance agent only for the class
of insurance authorized by the certificate.
(4) No
individual may hold more than one level of insurance agent’s certificate of
authority in each class.
(5) An insurance agent’s certificate of authority
for general insurance authorizes an insurance agent to sell travel insurance.
AR 122/2001
s2;9/2003;94/2006
Continuation of
pre-existing certificate of authority
2.1(1) Where
immediately before the coming into force of this section
(a) an
individual held a valid level 1 life insurance agent’s certificate of
authority, that certificate of authority continues to be valid until it is
suspended, revoked, cancelled or is not renewed, and
(b) an
individual held a valid level 2 life insurance agent’s certificate of
authority, that certificate of authority continues as a full life insurance
agent’s certificate of authority.
(2) The holder of a level 1 life
insurance agent’s certificate of authority must complete at least 15 hours of
continuing education in each of the following periods:
(a) February
16, 2003 to February 15, 2004;
(b) February
16, 2004 to February 15, 2005;
(c) February
16, 2005 to February 15, 2006;
(d) February
16, 2006 to February 15, 2007.
(3) The continuing education required
under subsection (2) must consist of portions of the Life Licensing
Qualification Program.
(4) On the renewal of a level 1 life
insurance agent’s certificate of authority, the holder of the certificate must
provide proof from the insurer that recommended the granting of the certificate
that the continuing education required under subsection (2) has been completed.
(5) Where the holder of a level 1 life
insurance agent’s certificate of authority does not complete the continuing
education required under this section, the certificate of authority is
cancelled.
(6) On February 16, 2007, the holder of
a level 1 life insurance agent’s certificate of authority who has met the
requirements of this section and who has passed an examination approved by the
Minister is, despite section 8, eligible to receive a full life insurance
agent’s certificate of authority.
(7) An individual holding a valid life
insurance agent’s certificate of authority who is enrolled in course 101, 102
or 103 of the Insurance Financial Advisors Training Course on or before January
31, 2003 is, despite section 8, entitled to receive a full life insurance
agent’s certificate of authority prior to February 16, 2007 on the successful
completion of all of those courses.
(8) Section 30 does not apply to the
holder of a level 1 life insurance agent’s certificate of authority until
February 16, 2007.
(9) No person may apply for a new level
1 life insurance agent’s certificate of authority after January 31, 2003,
unless the person has passed an examination approved by the Minister within the
12 months before that date and applies for the certificate within 12 months
following the passing of that examination.
(10) A level 1 life insurance agent’s
certificate of authority may not be renewed.
AR 9/2003 s3;94/2006
Probationary life
insurance certificate of authority
2.2(1) The
holder of a probationary life insurance agent’s certificate of authority
(a) must,
within 180 days of the issuance of the probationary certificate, enroll in the
Life Licensing Qualification Program,
(b) must,
within 2 years of the issuance of the probationary certificate, complete the
program and pass the Life Licensing Qualification Program examination,
(c) must
complete a needs analysis for each application for insurance, and
(d) must
ensure that each application and needs analysis referred to in clause (c) is
countersigned by a person who holds a full life insurance certificate of
authority.
(1.1) Notwithstanding
subsection (1), a probationary life insurance agent’s certificate of authority
may not be renewed.
(2) This
section is repealed on February 15, 2007.
AR 9/2003 s3;94/2006
Level 1 or
probationary life insurance agent’s certificate
3(1) The
holder of a level 1 or probationary life insurance agent’s certificate of
authority
(a) may
act as an insurance agent only for the licensed life company that recommends
that the holder be issued a life insurance agent’s certificate of authority,
and
(b) may
not complete any replacement of a contract within the meaning of the Replacement
of Life Insurance Contracts Regulation unless the disclosure statement
required by that Regulation is countersigned by a person who holds a full life
insurance agent’s certificate of authority.
(2) It is a prescribed requirement for
obtaining life insurance from another insurer that an insurance agent who holds
a level 1 or probationary life insurance agent’s certificate of authority,
before acting as an insurance agent for that other insurer, obtain the written
consent, in each case, of the insurer who recommended the agent under section
458 of the Act.
AR 122/2001 s3;9/2003
Ministerial restrictions
4 The Minister may, as a
condition of an insurance agent’s certificate of authority, limit the holder to
the sale of a class of insurance and specified policies.
AR 122/2001 s4;94/2006
Certificates for
individuals
5(1) In addition to the requirements of the Act, the
requirements to be met by an individual in respect of a new insurance agent’s
certificate of authority are as follows:
(a) the
individual must have the educational qualifications set out by this Regulation
with respect to the class and level of certificate of authority being applied
for;
(b) the
individual must be mentally competent;
(c) the
individual must be trustworthy;
(d) the
individual must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the individual unfit to receive a
certificate of authority;
(e) the
individual must not have the status of a conditionally discharged or
undischarged bankrupt;
(f) the
individual must not be in a position to use coercion or undue influence in
order to control, direct or secure insurance business;
(g) the
individual must not be engaged in another occupation or business that would
place the individual in a conflict of interest position when acting as an
insurance agent.
(2) In
addition to the requirements of the Act, the requirements to be met by an
individual to retain an insurance agent’s certificate of authority or for a
certificate of authority that is being renewed or reinstated are as follows:
(a) the
individual must have met the continuing education requirements set out in
section 30;
(b) the
individual must be mentally competent;
(c) the
individual must not have the status of an undischarged bankrupt or, if the
individual has the status of an undischarged bankrupt, the Minister is
satisfied that the bankruptcy is not related to the individual’s activities as
an insurance agent, as a registrant under the Securities Act, or as a mortgage broker with the meaning of the Real Estate Act;
(d) the
individual must not be in a position to use coercion or undue influence in
order to control, direct or secure insurance business;
(e) the
individual must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the individual unfit to receive a
certificate of authority;
(f) the
individual must not be engaged in another occupation or business that would
place the individual in a conflict of interest position when acting as an
insurance agent.
Certificates for
businesses
6(1) In addition to the requirements of the Act, the
requirements to be met by a business in respect of a new insurance agent’s
certificate of authority are as follows:
(a) the
business must satisfy the Minister that the business is registered under the Business Corporations Act or under the Partnership Act, if applicable;
(b) the
business must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the applicant unfit to receive the
certificate of authority;
(c) repealed
AR 196/2005 s3;
(d) if
the business is formed or incorporated in another province or territory it must
provide evidence that it is licensed in that province or territory by the
appropriate licensing authority as an insurance agent.
(2) In
addition to the requirements of the Act, the requirements to be met by a
business to retain an insurance agent’s certificate of authority or for a
certificate of authority that is being renewed or reinstated are as follows:
(a) the
business must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the applicant unfit to receive the
certificate of authority.
(b) repealed AR 196/2005 s3.
AR 122/2001 s6;196/2005
Licence from outside
Alberta
7 If an individual or business from another
jurisdiction obtains an insurance agent’s certificate of authority in Alberta,
and the licence issued by the appropriate licensing authority in that
jurisdiction is subject to terms and conditions, the Minister may impose the
same terms and conditions on the certificate of authority issued in Alberta.
Educational
qualifications for life and accident and
sickness insurance agents
8(1) An individual is not eligible to apply for a
life insurance agent’s certificate of authority unless within the previous 12
months the individual has met the educational requirements and passed an
examination both of which have been approved by the Minister.
(2) Repealed
AR 9/2003 s5.
(3) An
individual is not eligible to apply for an accident and sickness certificate of
authority unless within the previous 12 months the individual has met the
educational requirements approved by the Minister and has passed an examination
approved by the Minister.
(4) An
individual who fails the examination referred to in subsection (1) or (3) is
allowed to rewrite that examination 2 further times at any time, but a 3rd or
subsequent rewriting is not allowed unless a period of at least 6 months has
elapsed since the date of the previous rewriting.
(5) Despite
subsections (1) and (3), an individual is not required to pass an examination
referred to in those subsections if
(a) the
individual is not a resident of Alberta and is licensed to act as an insurance
agent in the individual’s home jurisdiction for the class of insurance being applied
for and provides evidence from the appropriate licensing authority of the home
jurisdiction certifying that the individual has satisfactorily completed
courses in life insurance or accident and sickness insurance, as the case may
be, and passed an examination that is equivalent to the examination referred to
in subsection (1) or (3), as the case may be, and the Minister is of the
opinion that the courses and examinations are equivalent,
(b) the
individual held a certificate of authority for the same class as is being
applied for in the 2‑year period before the receipt by the Minister of
the application for a certificate of authority, or
(c) the
individual was licensed in another jurisdiction within the previous 12 months
as an insurance agent in a class equivalent to that being applied for, is
resident in Alberta, and provides evidence from the appropriate licensing
authority of that jurisdiction certifying that the individual meets the course
or examination requirements of clause (a).
(6) The
Minister may issue an insurance agent’s certificate of authority referred to in
this section, subject to any terms and conditions the Minister may impose,
covering a period not exceeding 180 days to an applicant who has not written an
examination referred to in subsection (1) or (3) if the applicant is
(a) the
surviving spouse or surviving adult interdependent partner, next of kin or
personal representative of a deceased agent who at the time of the agent’s
death held a subsisting certificate of authority, or
(b) the spouse or adult interdependent partner,
relative, employee, legal guardian or trustee of an insurance agent who, at the
time of becoming disabled through sickness, incapacity, injury or other similar
circumstances, held a subsisting certificate of authority.
AR 122/2001
s8;9/2003;93/2003;109/2003;94/2006
Educational
qualifications for general insurance agents
9(1) An individual is not eligible to apply for a
level 1 general insurance agent’s certificate of authority for any class of
insurance unless within the previous 12 months the individual has passed an
examination respecting general insurance approved by the Minister.
(2) An
individual is not eligible to apply for a level 2 general insurance agent’s
certificate of authority unless, within the previous 12 months,
(a) in
the case of an individual who does not hold a level 1 certificate of authority,
the individual has passed the general insurance examination referred to in
subsection (1) and one of the examinations referred to in clause (b), and
(b) in
the case of an individual who holds a level 1 certificate of authority, the
individual has passed
(i) the general insurance examination for commercial lines approved
by the Minister, or
(ii) the general insurance examination for personal lines approved by
the Minister.
(3) An
individual who fails the examination referred to in subsection (1) or (2) is
allowed to rewrite that examination 2 further times at any time, but a 3rd or
subsequent rewriting is not allowed unless a period of at least 6 months has
elapsed since the date of the previous rewriting.
(4) An
individual may elect to write either examination referred to in subsection
(2)(b) at each attempt, but subsection (3) applies as if the same examination
were being attempted each time.
(5) It
is a condition of every level 1 general insurance agent’s certificate of
authority that the holder must qualify for a level 2 general insurance
certificate of authority within 36 months after obtaining the level 1
certificate of authority, and if the condition is not met, the certificate of
authority is cancelled.
(5.1) If, during the 36‑month period
following the issuance of a level 1 general insurance agent’s certificate of
authority,
(a) the
certificate is cancelled, revoked, suspended or not renewed, and
(b) subsequently
the person who holds the certificate of authority applies for the reinstatement
of the certificate under subsection (8),
the 36‑month
period referred to in subsection (5) is not extended by the length of time the
certificate was cancelled, revoked or suspended.
(6) Subject
to the Act, on qualifying for and on application for a level 2 general
insurance certificate of authority under subsection (5), the insurance agent’s
certificate of authority is to be issued in accordance with the Act.
(7) Repealed
AR 376/2003 s2.
(7.1) Where a level 1 general insurance
agent’s certificate of authority is cancelled under subsection (5) and the
individual who held the certificate of authority applies for a new certificate
of authority, the individual must meet the qualifications set out in subsection
(2)(b) for a level 2 general insurance agent’s certificate of authority.
(8) Despite
subsections (1) and (2), an individual is not required to pass an examination
referred to in those subsections if
(a) the
individual is not a resident of Alberta and is licensed to act as a general
insurance agent in the individual’s home jurisdiction and provides evidence
from the appropriate licensing authority of that jurisdiction certifying that
the individual has passed examinations that are equivalent to the examination
referred to in subsections (1) or (2), as the case may be, and the Minister is
of the opinion that the examinations are equivalent,
(b) the
applicant held a certificate of authority in the same class and level as is
being applied for in the 2‑year period before the receipt by the Minister
of the application for a certificate of authority,
(c) the
individual intends to carry on business as an insurance agent only for hail
insurance or livestock insurance, or
(d) the
individual was licensed in another jurisdiction within the previous 12 months
as an insurance agent in a class and level equivalent to those being applied
for, is resident in Alberta, and provides evidence from the appropriate licensing
authority of that jurisdiction certifying that the individual meets the
examination requirement of clause (a).
(9) The
Minister may issue a general insurance agent’s certificate of authority,
subject to any terms and conditions the Minister may impose, covering a period
not exceeding 180 days to an applicant who has not written an examination
referred to in subsection (1) or (2) if the applicant is
(a) the
surviving spouse or surviving adult interdependent partner, next of kin or
personal representative of a deceased agent who at the time of the agent’s
death held a subsisting certificate of authority, or
(b) the spouse or adult interdependent partner,
relative, employee, legal guardian or trustee of an insurance agent, or the
representative of a committee of insurers of an insurance agent, who at the
time of becoming disabled through sickness, incapacity, injury or other similar
circumstances, held a subsisting certificate of authority.
AR 122/2001
s9;293/2002;109/2003;376/2003;94/2006
Designated representative
10(1) This section establishes the requirements to be
met by a designated representative of a business that holds an insurance
agent’s certificate of authority.
(2) A
designated representative of a business must
(a) be
an individual,
(b) hold
an insurance agent’s certificate of authority that is of the same class as the
insurance agent’s certificate of authority held by the business, and
(c) have
responsibility for the management and supervision of the business.
(3) The
designated representative of a business that holds a life insurance agent’s
certificate of authority must hold a full life insurance agent’s certificate of
authority.
(4) The
designated representative of a business that holds a general insurance agent’s
certificate of authority must have at least 24 months’ experience in general
insurance within the 36 months before being designated as a designated
representative and
(a) hold
a level 2 general insurance agent’s certificate of authority, or
(b) have
established eligibility for a level 2 general insurance agent’s certificate of
authority within the previous 12 months before being designated as a designated
representative.
AR 122/2001 s10;9/2003
Incompetence
11 If the Minister is satisfied that a
holder of an insurance agent’s certificate of authority has demonstrated
incompetence to act as an insurance agent, one of the conditions that the
Minister may impose under section 480(1) of the Act is that the certificate of
authority will not be renewed or reinstated unless the individual who holds the
certificate of authority takes a written examination, or courses, approved by
the Minister and achieves a mark specified by the Minister.
Restricted Certificates
Information provided by
consumer
12(1) The holder of a restricted certificate
(a) may
not use personal information given by a person buying insurance unless it is
used for the purpose for which it is given and the person signs a consent that
meets the requirements of subsection (2), and
(b) may
not release the information described in clause (a) to someone who is not an
employee of the holder unless the person signs a consent that meets the
requirements of subsection (3).
(2) The
consent referred to in subsection (1)(a) must be identified as a consent to the
person who is the subject of the information and specifically identify the
purpose for which the information may be used by the restricted certificate
holder.
(3) The
consent referred to in subsection (1)(b) must be identified as a consent to the
person who is the subject of the information and specifically identify the information to be
released, to whom the information is to be released and the purpose for which
the released information may be used.
(4) Subsection
(1)(b) does not apply if the personal information
(a) is released to another person as required by
law, or
(b) is
released to the insurer on behalf of which the holder of the restricted
certificate is marketing insurance.
Information from
non-insurance transaction
13(1) If a holder of a restricted certificate
receives, for the purposes of a non‑insurance transaction, personal
information pertaining to a person’s insurance coverage, the holder may not
(a) release
the information to another person except for the purposes of the non‑insurance
transaction or a similar subsequent transaction, or
(b) use
the information for a purpose except for the purpose of the non‑insurance
transaction or a similar subsequent transaction.
(2) Subsection
(1) does not apply if the release or use of the information pertaining to the
person’s insurance coverage is required by law.
Insurance application
14(1) When a holder of a restricted certificate
negotiates or enters into a transaction with a person for credit‑related
insurance at the same time as a credit arrangement is being negotiated or
entered into with the person, the holder must provide the person with a
separate application for the insurance coverage.
(2) A
holder of a restricted certificate must, on request, provide a person making an
application for insurance with a copy of the completed insurance application.
Disclosure
15(1) A holder of a restricted certificate, at the
time the person applies for insurance coverage, must
(a) provide
to a person buying insurance
(i) a summary of the terms, including limitations and restrictions,
of the insurance offered, and
(ii) a summary of the circumstances under which the insurance
commences or terminates and the procedures to follow in making a claim,
and
(b) notify
a person buying insurance that the policy will be sent to the person, or in the
case of a contract of group insurance, a certificate will be sent to the
person.
(2) A
holder of a restricted certificate who is marketing credit‑related
insurance, at the time of application for insurance coverage
(a) must
provide to a person buying insurance
(i) a statement that sets out the right to rescind the insurance
contract and obtain a full refund of the premium pursuant to section 18, and
(ii) a statement that the duration of the insurance is less than the
term of the amortization period of any related loan, or that the amount of the
insurance is less than the indebtedness, if that is the case,
and
(b) must
inform a person buying insurance that the person may contact the insurer for
further information or clarification, the name of the insurer that is providing
the insurance and how that insurer may be contacted.
(3) The
insurer on behalf of which the holder of the restricted certificate is
marketing insurance must ensure that procedures are in place to effect the
requirements of this section.
(4) Where
a holder of a restricted certificate receives any compensation, inducement or
benefit from an insurer, directly or indirectly, for selling insurance, the
holder of a restricted certificate must disclose that fact to any person who is
considering buying insurance from that holder.
Loan offers
16(1) A holder of a restricted certificate may not,
when offering to make a loan to, or arrange a loan for, a person, inform the
person that the person must, or require the person to, purchase insurance
before the loan can be made.
(2) Despite
subsection (1), a holder of a restricted certificate may, when offering to make
a loan to, or arrange a loan for, a person, inform the person that the person
must, or require the person to, purchase insurance if the insurance is to
protect the lender against default of the borrower and the insurance is from an
insurer licensed to do business in Alberta.
(3) For
the purpose of subsection (2), a holder of a restricted certificate may not inform
the person that the person must, or require the person to, purchase insurance
from the holder or an insurer or insurance agent, specified by the holder.
Information
certificate
17 A holder of a restricted certificate must
(a) ensure
that purchasers or potential purchasers of insurance are informed that they are
contracting or considering contracting with an insurer and not with the holder,
and
(b) ensure
that written documentation is provided to the purchaser of insurance evidencing
the insurance and setting out the
information required to be disclosed by clause (a) and section 15(1)(b) within
30 days of the insurance coming into force.
Right of rescission
18(1) A person who buys life insurance through the
holder of a restricted certificate has 10 days, or any longer period specified
in the policy or certificate, after receiving the written documentation referred to in section 17 to rescind the
insurance.
(2) A
person who rescinds insurance in accordance with subsection (1) is entitled to
receive from the insurer a refund of the whole premium that has been paid.
Part 2
Adjusters
Levels
of Certificates of Authority
Classes of certificates
19(1) The Minister may issue an adjuster’s
certificate of authority to a business for the purpose of section 460(1) of the
Act.
(2) The
following levels of adjusters’ certificates of authority are established for
individuals for the purposes of section 460(2) of the Act:
(a) level
1 adjuster;
(b) level
2 adjuster;
(c) level
3 adjuster.
(3) It
is a condition of each adjuster’s certificate of authority that the holder
comply with the limits, restrictions, terms and conditions imposed on the
adjuster’s certificate of authority.
(4) The
Minister may issue an adjuster’s certificate of authority limited to adjusting
losses in respect of hail insurance, travel insurance or equipment warranty
insurance.
(5) In
this section, “travel insurance” means insurance against loss, damage, injury
or expense caused by
(a) accident,
injury, sickness, property loss or theft arising during or in connection with
travel, or
(b) cancellation, delay or interruption of
travel or intended travel.
AR 122/2001 s19;94/2006
Holding one level
20 No individual may hold more than one
level of adjuster’s certificate of authority.
Requirements
Eligibility for
certificate
21(1) In addition to the requirements of the Act, the
requirements to be met by an individual in respect of a new adjuster’s
certificate of authority are as follows:
(a) the
individual must have the educational qualifications set out by this Regulation
with respect to the level of certificate of authority being applied for;
(b) the
individual must be mentally competent;
(c) the
individual must be trustworthy;
(d) the
individual must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the individual unfit to receive the
certificate of authority;
(e) the
individual must not be engaged in another occupation or business that would
place the individual in a conflict of interest position when acting as an
adjuster.
(2) In
addition to the requirements of the Act, the requirements to be met by an
individual to retain an adjuster’s certificate of authority or for a
certificate of authority that is being renewed or reinstated are as follows:
(a) the
individual must not be engaged in another occupation or business that would
place the individual in a conflict of interest position when acting as an
adjuster;
(b) the
individual must be mentally competent;
(c) the
individual must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the individual unfit to receive a
certificate of authority;
(d) the
individual must have met the continuing education requirements set out in
section 30.
(3) In
addition to the requirements of the Act, the requirements to be met by a
business in respect of a new adjuster’s certificate of authority, renewal of an
adjuster’s certificate of authority or reinstatement of an adjuster’s
certificate of authority and for retaining an adjuster’s certificate of
authority are as follows:
(a) the
business must not have been convicted of any offence the nature of which, in
the opinion of the Minister, would render the business unfit to receive the
certificate of authority;
(b) the
business must not be engaged in another business activity that would place the
business in a conflict of interest position when acting as an adjuster;
(c) the
business must satisfy the Minister that the business is registered under the Business Corporations Act or under the Partnership Act, if applicable.
Educational
qualifications and restrictions
for insurance adjusters
22(1) An individual is not eligible to apply for a
level 1 adjuster’s certificate of authority unless, within the previous 12
months, the individual has passed an examination approved by the Minister.
(2) An
individual who fails the examination referred to in subsection (1) is allowed
to rewrite that examination 2 further times at any time, but a 3rd or
subsequent rewriting is not allowed unless a period of at least 6 months has
elapsed since the date of the previous rewriting.
(3) An
individual is not eligible to apply for a level 2 adjuster’s certificate of
authority unless the individual
(a) has
successfully completed 6 courses of the Insurance Institute of Canada for a
designation as an Associate of the Insurance Institute of Canada, of which one
course must be C‑15
(Loss Adjustment and Claims Settlements), C‑17 (Claims 1) or C‑110
(Essentials of Loss Adjusting), and
(b) has
acted as an adjuster for at least 24 consecutive months.
(4) It
is a condition of a level 1 and level 2 adjuster’s certificate of authority
that the holder be subject to the direct supervision of a holder of a level 3
adjuster’s certificate of authority and that all reports in relation to the
adjustment of claims by the holder of the level 1 or level 2 adjuster’s
certificate of authority be approved and countersigned by that holder of a
level 3 adjuster’s certificate of authority.
(5) An
individual is not eligible to apply for a level 3 adjuster’s certificate of
authority unless the individual has successfully met the level 2 requirements
and
(a) is
an Associate or Fellow of the Insurance Institute of Canada,
(b) has
completed
(i) the C‑32 (Bodily Injury Claims) course of the Insurance
Institute of Canada, and
(ii) one of the following courses of the Insurance Institute of
Canada:
(A) the C‑46 (Claims 2);
(B) C‑41 (Property Loss Adjustment);
(C) C‑111 (Advanced Loss Adjusting).
and
(c) has
acted as an adjuster for at least 60 months within the 10‑year period
immediately preceding the date of application.
(6) Despite
subsection (1), an applicant is not required to pass an examination referred to
in that subsection if the applicant held an adjuster’s certificate of authority
in the 2‑year period before the receipt by the Minister of the
application for an adjuster’s certificate of authority.
(7) Despite
subsections (1), (3) and (5), an individual is not required to complete a
course, program or pass an examination referred to in those subsections if
(a) the
individual is not a resident of Alberta and is licensed as an insurance
adjuster in the individual’s home jurisdiction and provides evidence from the
appropriate licensing authority of that jurisdiction certifying that the
applicant has satisfactorily passed insurance courses, programs and
examinations that are equivalent to the courses, and program and examination
referred to in subsections (1), (3) and (5) and the Minister is of the opinion
that the courses, programs and examinations are equivalent;
(b) the
individual is applying for an adjuster’s certificate of authority limited to
adjusting losses in respect of hail insurance, travel insurance or equipment
warranty insurance only;
(c) the individual had at least 10 years of
claims adjusting experience prior to January 1, 1990 and passed both an
examination approved by the Minister under subsection (1) and an oral
examination approved by the Insurance Adjusters’ Council.
(8) In
this section, “travel insurance” means insurance against loss, damage, injury
or expense caused by
(a) accident,
injury, sickness, property loss or theft arising during or in connection with
travel, or
(b) cancellation, delay or interruption of
travel or intended travel.
AR 122/2001 s22;293/2002;128/2004;94/2006
Operating from more
than one office
23 A business that acts or offers to act as
an adjuster and operates from more than one office must have in each office at
least one adjuster who holds a level 2 adjuster’s certificate of authority.
Designated
representative
24(1) This section establishes the requirements to be
met by a designated representative of a business and a sole proprietorship who
holds an adjuster’s certificate of authority.
(2) A
designated representative of a business must
(a) be
an individual,
(b) be
an Associate or Fellow of the Insurance Institute of Canada,
(c)
hold a level 3 adjuster’s certificate of authority, and
(d) have
responsibility for the management and supervision of the business.
(3) In
order for a sole proprietor to hold an adjuster’s certificate of authority, the
sole proprietor must meet the requirements of subsection (2).
(4) Subsection
(2)(b) and (c) do not apply to a designated representative of a business who is
issued an adjuster’s certificate of authority under section 19(4).
Condition
25 If the Minister is satisfied that the
holder of an adjuster’s certificate of authority has demonstrated incompetence
to act as an adjuster, one of the conditions that the Minister may impose under
section 480(1) of the Act is that the adjuster’s certificate of authority will
not be renewed or reinstated unless the individual who held the adjuster’s
certificate of authority takes an examination or courses approved by the
Minister and achieves a mark specified by the Minister.
Part 3
General
Cancellation,
Revocation, Expiry and Suspension
Restriction on renewal
and reinstatement
25.1 A certificate of authority may not be
renewed or reinstated if
(a) the
certificate of authority has been cancelled or revoked,
(b) the
Minister refused to renew the certificate of authority and it has expired, or
(c) the
holder of the certificate of authority failed to renew it before it expired.
AR 94/2006 s11
Suspension
25.2(1) If
a certificate of authority that is suspended for a specified
period is renewed, the balance of the suspension period applies to
the renewed certificate of authority.
(2) If
a certificate of authority that is suspended for an unspecified period is
renewed, the suspension applies to the renewed certificate of authority until
the holder’s application for reinstatement under section 472 of the Act is
approved.
AR 94/2006 s11
Prescribed Matters
Prescribed amounts
26(1) The prescribed amount for the purpose of section
460 of the Act is $15 000 in the case of contracts covering damage to
property including automobiles.
(2)
The prescribed amount for the purpose of section 65 of the Act is $10 000.
Prescribed
enterprises
27 The following are prescribed enterprises
under section 454 of the Act:
(a) sales
finance companies;
(b) customs
brokers licensed under the Customs Act
(Canada);
(c) freight-forwarding
companies;
(d) recreational, marine, farm implement and
construction equipment dealers.
AR 122/2001 s27;293/2002
Special Broker
Condition
28(1) It is a condition of a special broker’s licence
that the special broker must disclose to the prospective insured before the
insurance transaction is entered into that the insurer underwriting the
insurance is not licensed in Alberta.
(2) It
is a condition of a special broker’s licence that, in the case of surety
insurance, the special broker must disclose if the insurance is to be provided
by an unlicensed insurer
(a) to
the principal, before the surety insurance is issued, and
(b) to
the obligee, within 7 days of the surety insurance being issued.
Continuing Education
Continuing education
program
29(1) The Accreditation Committee for the purposes of
this Part is the Accreditation Committee appointed by the Minister pursuant to
the Government Organization Act.
(2) The Minister may, on the
recommendation of the Accreditation Committee, approve a continuing education
provider for the purposes of this subsection, and on the Minister’s doing so,
that provider is authorized to accredit its own continuing education courses
for certificates of authority and the hours of each such course.
(2.1) The Minister may, after taking into
consideration any recommendations made by the Accreditation Committee, approve,
in respect of a certificate of authority,
(a) continuing
education providers for the purposes of this subsection,
(b) the
continuing education courses that those providers are authorized to provide,
and
(c) the
hours of each such course.
(2.2) An approval given under subsection
(2) or (2.1) is subject to such terms and conditions as the Minister imposes on
the provider.
(2.3) The
Minister may, after taking into consideration any recommendations made by the
Accreditation Committee, revoke the approval of a continuing education provider
made under subsection (2) if, in the Minister’s opinion, the provider is not
complying with any terms and conditions imposed on the provider under
subsection (2.2).
(3) The Minister must maintain a list of courses approved under
subsection (2.1) as continuing education courses for a certificate of authority
and a list of persons approved as continuing education providers and may
require information from the continuing education providers that is necessary
for the purposes of this Part.
AR 122/2001 s29;293/2002;376/2003;94/2006
Continuing education
requirements
30(1) An
individual or a sole proprietor who holds
(a) a
life insurance agent’s certificate of authority,
(b) an
accident and sickness insurance agent’s certificate of authority,
(c) a
general insurance agent’s certificate of authority, or
(d) an
adjuster’s certificate of authority
must complete in each
certificate term at least 15 hours of the continuing education courses approved
under section 29 with respect to the certificate of authority.
(2) Subsection
(1)(c) does not apply to an individual or sole proprietor who holds a general
insurance agent’s certificate of authority limited to hail insurance or
livestock insurance.
(3) to (7) Repealed AR 94/2006
s13.
(7.1) If a person misses a deadline
imposed by any of the clauses in subsection (1), then, notwithstanding that
provision, the person may complete the 15‑hour requirement of that
provision after that deadline but, notwithstanding section 32 and anything else
in this Regulation to the contrary, the hours so spent in completing that
requirement may not be counted toward completing any requirement of any other
provision of this Regulation.
(8) Subsection (1) does not apply to a
non‑resident individual or sole proprietor who holds a certificate of
authority to operate in Alberta if the individual or sole proprietor is a
resident of and is registered in another jurisdiction that has a continuing
education requirement satisfactory to the Minister.
(9) Notwithstanding anything in this
section, where an individual or sole proprietor applies for and obtains a new
certificate of authority
(a) in
the 3 months preceding the expiry date for that certificate, the individual or
sole proprietor need not complete the continuing education required under this
section for the certificate term, or
(b) when
there is more than 3 months remaining before the expiry date for that
certificate, the individual or sole proprietor must complete the number of
hours of continuing education calculated in accordance with the following
formula:
A x C
B
where
A is the number of months remaining in the
certificate term;
B is 12 months;
C is 15 hours.
(10) Repealed AR 94/2006 s13.
(11) A person who completes excess hours
of continuing education courses in one certificate term may apply the excess
hours to satisfy up to 7.5 hours of continuing education required under this
section in the certificate term following that certificate term.
(12) Where
a certificate of authority for an individual or sole proprietor expires, or is
cancelled or revoked within 3 months of the expiry date of the certificate, and
the holder of that certificate applies for a new certificate of authority for
the same class of certificate as the former certificate within 6 months of the
expiry, cancellation or revocation, as the case may be, the applicant must have
complied with the continuing education requirements applicable to the former
certificate before the new certificate may be issued.
(13) In this section, “certificate term” means
(a) in
respect of a life insurance agent’s certificate of authority, the period
beginning on February 16 and ending on the next February 15,
(b) in
respect of an accident and sickness insurance agent’s certificate of authority,
the period beginning on February 16 and ending on the next February 15,
(c) in
respect of a general insurance agent’s certificate of authority, the period
beginning on November 1 and ending on the next October 31, and
(d) in respect of an adjuster’s certificate of
authority, the period beginning on June 1 and ending on the next May 31.
AR 122/2001 s30;293/2002;376/2003;94/2006
Records
31(1) An
individual who holds a certificate of authority must keep records issued by a
continuing education provider respecting the continuing education courses
completed by that person and must provide the records when required by the
Minister.
(2) If
the certificate holder does not provide the record within 30 days after
receiving a demand made under subsection (1), the certificate of authority is
automatically suspended from the expiration of that period until the demand is
complied with.
AR 122/2001
s31;376/2003;94/2006
Course credit
32 If an individual holds more than one
certificate of authority, any of the completed continuing education courses
approved under section 29 for a certificate of authority completed by the
individual may be applied to the continuing education requirements of the
certificates of authority that person holds, if the courses are approved for
those certificates of authority.
AR 122/2001 s32;293/2002
Financial Guarantee
Errors and omissions
insurance
33(1) The financial guarantee required by the Act is
a policy of insurance against errors and omissions that meets the requirements
of this section.
(2) The
policy must be issued by a licensed insurer and be in a form and contain the
terms, conditions, definitions and exclusions approved by the Minister
including the period after the term of the policy in which claims may be made.
(3) The
policy must provide coverage for errors and omissions for which a claim is made
during the term of the policy.
(4) If
a claimant has a claim resulting from a judgment or from an agreement between
the insurer and the claimant against the insured for an error or omission, the
insurer must pay the proceeds from the policy directly to the claimant and may
recover any amount equating to the deductible from the insured under a
reimbursement agreement between the insurer and the insured.
(5) The
insurer must provide 30 days’ advance notice to the Minister by certified mail
of the cancellation or non‑renewal of the policy or any change whereby
the policy does not meet the form and contents required under subsection (2).
AR 122/2001 s33;9/2003
Existing insurance
34 If an insurance agent offers financial
services other than insurance and has errors and omissions insurance in respect
of the other financial services, the policy of errors and omissions insurance
required by section 33 in respect of the insurance agent must be separate and
distinct from the errors and omissions insurance in respect of the other
financial services, but may be provided within one policy of insurance.
Amount of insurance
35(1) The
errors and omissions insurance required in respect of a business that holds a
certificate of authority, other than a restricted certificate, must provide
coverage of at least $500 000 per claim with a maximum policy payout for
all claims of $2 000 000 in a policy year, and the policy must be
issued in the name of the business and the insurance must provide coverage for
the employees and independent contractors of the business who hold certificates
of authority.
(2) The
errors and omissions insurance required in respect of a business that holds a
restricted certificate must provide coverage of at least $500 000 per
claim, with a maximum policy payout for all claims in a policy year determined
by multiplying $500 000 by the number of employees of the business who act
or offer to act as insurance agents, to a maximum of $2 000 000.
(3) Repealed
AR 94/2006 s15.
AR 122/2001
s35;293/2002;196/2005;94/2006
Exception to
financial guarantee requirements
36 Section 465 of the Act does not apply to
a business that
(a) holds
a restricted certificate, and
(b) is
a deposit‑taking institution.
Part 4
Transitional Provisions, Repeals, Expiry and Coming into Force
Transitional
37(1) Despite section 22(1), (3) and (5) and subject
to this section, on the coming into force of this Regulation, an adjuster’s
certificate of authority under Part 16 of the former Insurance Act
(a) that
is a level 1 certificate of authority is continued as a level 1 certificate of
authority;
(b) that
is a level 2 or 3 certificate of authority is continued as a level 2
certificate of authority;
(c) that
is a level 4 certificate of authority is continued as a level 3 adjuster’s
certificate of authority;
(d) that
is a level 5 certificate of authority is continued as a level 3 adjuster’s
certificate of authority and the holder is deemed to be a designated
representative until May 31, 2002 and is deemed to meet the requirements of
section 24(2)(b) as long as the holder is the designated representative of the
business that employs the holder when this Regulation comes into force.
(2) An
adjuster who held a certificate of authority within the one‑year period
immediately before the coming into force of this Regulation may apply for a new
certificate of authority at any time within one year of the date on which the
certificate of authority was no longer in force and may be issued a new certificate
of authority at the level specified in subsection (1) as if the adjuster held a
certificate of authority on the date this Regulation comes into force, provided
that the adjuster meets the requirements of section 21(2).
Transitional
38(1) On the coming into force of this Regulation, a
recommendation under section 511 of the former Insurance Act is deemed to be a
recommendation under section 458 of the Insurance
Act, in the case of life insurance or under section 459(1), (2), (3)(b) or
(4) of the Insurance Act, in the case
of property and casualty insurance.
(2) On
the coming into force of this Regulation, an individual who holds a certificate
of authority that requires a recommendation of a designated representative
under section 459(3)(a) or 464 of the Act is deemed to be recommended by the
designated representative of the business that the individual represents.
(3) On the coming into force of this Regulation, an
individual who is designated under section 508(3) of the former Insurance Act
is deemed to be the designated representative of the business under section 456
of the Insurance Act.
AR 122/2001 s38;94/2006
Repeal
39 The Insurance
Agents and Adjusters Regulation (AR 32/89) is repealed.
Expiry
40 For the purpose of ensuring
that this Regulation is reviewed for ongoing relevancy and necessity, with the
option that it may be repassed in its present or an amended form following a
review, this Regulation expires on April 30, 2016.
AR 122/2001 s40;94/2006
Coming into force
41(1) This Regulation, except for sections 33 to 36,
comes into force on the coming into force of any section of the Insurance Act.
(2) Sections 33 to 36 come into force on the coming
into force of section 465 of the Insurance
Act.
AR 122/2001 s41;94/2006
