Requirements for an Individual to Obtain a Licence to Act as a General Insurance Agent under the Insurance Act
In order to obtain a licence, an applicant must meet the following requirements:
- Complete a General Insurance Agent application, provide applicable supporting documents and pay the required fee of $150.00. (As of July 4, 2006, the application must be filed electronically and can be obtained from Licensing Link, as noted below.)
- Be familiar with the laws of Ontario relating to the licensing of general insurance agents.
- Be sponsored by a licensed insurer.
- Hold himself/herself out publicly and carry on business in good faith as a general insurance agent only in the name in which the agent is licensed.
- Not be engaged in any other business or occupation that would jeopardize the person's integrity, independence or competence.
- Be of good character and reputation.
- Be a suitable person and meet all the licensing requirements.
- Possess the appropriate educational background.
- Provide FSCO with an Ontario mailing address that is suitable to permit service by registered mail.
Licensing Link
Licensing Link is an online connection to applications and renewals. The system is used to complete initial and renewal applications, update contact information, change or transfer sponsorship and search agent and insurance company listings. Licensing Link will process payments for new and renewal applications and transfers using a credit card. An insurer must submit a Licensing Link Usage Agreement prior to first use of Licensing Link.
Educational Background
To become licensed as a general insurance agent, the applicant must successfully pass the qualifying examination for general insurance. Examination results are valid for one year and must be forwarded to FSCO with the application. FSCO does not conduct the examinations. General agents are exempt if they have a Chartered Insurance Professional (CIP) designation or successfully passed the equivalent RIBO exam.
General insurance examinations are coordinated by the Insurance Institute of Canada , 18 King Street East, 6th Flr., Toronto. For more information call 416-362-8586.
Sponsorship by Insurer
Sponsoring companies are responsible for investigating the record of the applicant and confirming the following:
- That the applicant is a person of good character and reputation.
- That the applicant possess an educational background that is appropriate to the responsibilities of an agent of the sponsoring company.
- That the applicant meets all licensing requirements and is a suitable person to receive a licence as a general agent.
- That the sponsoring insurer has established and maintains a system to ensure that each agent complies with the Ontario legal requirements and the requirements of the agent's licence.
Residents outside Ontario
If the applicant resides and is licensed as a general insurance agent in another Canadian jurisdiction, he or she may qualify for a licence in Ontario if a Certificate of Authority from that jurisdiction is provided to FSCO.
The Certificate of Authority gives details of an active agent's licence status. The sponsor should obtain the Certificate of Authority from the applicable provincial regulator and provide a copy to FSCO.
Renewals
Agents can renew their application using Licensing Link. Insurance agents are renewed every 2 years. Agents must renew their licence within 60 days prior to the expiry date on their licence. Applicants who have been unlicensed for two or more years will normally have to requalify as a new agent, including re-writing the general insurance examination.
Other Licence Transactions
Agents can change their address between renewal periods using Licensing Link. Agents are required to have a mailing address in Ontario. The system will not allow the agent to use an out-of-province address. There is no charge for an address change.
Insurers can terminate sponsorship for an agent using Licensing Link. Completion of the termination suspends the licence and prohibits the individual from acting as an agent. There is no charge for a termination.
An insurer can replace another insurer as the sponsoring company by means of a transfer using Licensing Link. The fee for this is $50.
Payments can be made by credit card or by using the pre-payment, using the Insurance Company Pre-Payment Deposit Authorization Form.
Licensed Ontario agents can obtain a Certificate of Authority by making a written request to FSCO. If a third party is requesting the Certificate of Authority, the request must include a letter of authorization from the agent, authorizing the certificate to be sent directly to the third party. Individual certificates are issued for each type of licence. Specify which licence the certificate should cover if there is more than one licence. The fee is $25 for each Certificate of Authority, payable to the “Minister of Finance.”
Agents can request an update to their legal name by writing to FSCO and providing applicable documentation, such as a copy of a birth or marriage certificate. The fee for this is $25, payable to the “Minister of Finance.”
Sponsors can obtain a duplicate licence by making a written request to FSCO. The fee is $25, payable to the “Minister of Finance.”
Please note: Deposit of a cheque or money order does not automatically mean that the individual is licensed. Following good management practices, all cheques are deposited upon receipt. The effective date of an individual's licence is listed on the FSCO website and a paper copy is issued by FSCO. A $35.00 fee will be charged for cheques returned for non-sufficient funds.
Links
List of Insurance Agents Licensed in Ontario
Bulletin L & H 01/06 - Changes to Licence Application and Renewal Process
Minister’s schedule of Required Fees
Financial Services Commission of Ontario