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Insurance
The following is meant solely to help the reader understand the main features of primary regulations governing this activity, and not meant in any way to provide a legal interpretation.
Financial Institutions Act (FIA):
The Financial Institutions Commission (FICOM) administers 10 statutes that provide a regulatory regime for trust companies, credit unions and insurance companies operating in British Columbia. Insurance companies are regulated primarily by the Financial Institutions Act (FIA) and the Insurance Act (AI). Captive insurers are also regulated by the Captive Insurance Company Act. Other Acts may also apply in special circumstances.
The FIA requires an insurance company to:
- obtain a Business Authorization from the Financial Institutions Commission (FICOM), and
- apply for and maintain a registration with the British Columbia Registrar of Companies
To obtain a Business Authorization, the insurance company msut present a feasible business plan, meet specified financial requirements, and otherwise satisfy all regulatory requirements prior to commencement of insurance business in the province.
The consent of the Minister is required for the incorporation of an insurance company in British Columbia, and for the issue of a Business Authorization to an extra provincial insurance company seeking to do insurance business in BC. Once issued, a Business Authorization continues unil it is revoked. It does not expire.
Every insurance company is required to meet appropriate financial standards on a continuing basis, and is subject to solvency monitoring to ensure that this is done. For insurance companies incorporated in British Columbia, solvency regulatory monitory consists of annual examinations by FICOM and a requirement to produce annual audited financial statements and quarterly unaudited financial statements.
For extraprovincial companies, FICOM reviews financial filings and other information on a periodic basis. Although there are number of remedial measures for problem companies, the policy is to work with the regulator in the incorporating jurisdiction.
Primary Contact:
Financial Institutions Commission
Suite 1200 - 13450 102nd Avenue
Surrey BC, V3T 5X3
Complaints and Inquiries: 604 953-5200
Reception: 604 953-5300
Toll Free : 866 206-3030 (outside local calling area within B.C.)
Fax: 604 953-5301
General Email: FICOM@ficombc.ca
Website: http://www.fic.gov.bc.ca/index.htm
Insurance Salesperson, Agents and Adjusters
A person must be licensed in British Columbia in order to act as an insurance agent, insurance salesperson, or insurance adjuster.
The Insurance Licensing Regulation under the FIA establishes the education and experience qualifications for insurance agents, salespersons and adjusters. The licensing and discipline of insurance sales persons, agents and adjusters is undertaken by the Insurance Council of British Columbia.
The total cost of an insurance agent's licence consists of a fee that is paid to the government, and an assessment that is paid to the Insurance Council (to fund its operations expenses). The Fees are paid to the Insurance Council and licenses are issued for a two year period.
Insurance Council of BC was delegated the authority to license insurance agents, salespersons, and adjusters; and was subsequently given authority to investigate and discipline licensees. In 1990, the Act established Council?s make up and defined its responsibilities in regulating insurance licensees. In January 2005 Council was granted rule-making authority. Council is accountable to the provincial government and reports to the Minister of Finance.
Primary Contacts:
Insurance Council of British Columbia
300-1040 West Georgia St.
P.O. Box 7, Vancouver, BC, V6E 4H1
Tel: (604) 688-0321- Toll Free: 1-877-688-0321
Fax: (604) 662-7767
Website: http://www.insurancecouncilofbc.com
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