Hayley Kai Fundementals - Chapter 15

Front 1

Administration of the insurance act

Back 1

Administration is responsibility of the superintendent of insurance , superintendent financial institutions ( BC) or commissioner ( Ontario )
often admin is delegated to Insurance councils .
their decisions can usually be appealed to superintendent

Front 2

Basis for termination of a insurance License

Back 2

1) guilty of misrepresentation , fraud, deceit , or dishonesty
2) contravenes any provision of insurance act or its equivalent - specifically rebating ( returning )any portion of the premium is illegal
3)unreasonably fails to pay insurer premiums that have been collected and retained
4) places insurance with an unlicensed insurer with out complying to legislation of unlicensed insurer
5) prove to be incompetent or untrustworthy to transact business of their license
6) misuses trust funds-

Front 3

Canadian Council of Insurance Regulators ( CCIR)

Back 3

a report that articulated the concept that intermediaries ( brokers) must be governed by three fundamental principles
1) the priority of the clients interest
2) disclosure of conflicts or potential conflicts of interest
3) product suitability

Front 4

Broker standard of conduct as put by Insurance Councils

Back 4

1) integrity ( convictions)
2)Competence ( sound knowledge )
3) quality of service (not failing to return phone calls ,failure to offer appropriate insurance )
4)advising clients -( candid and honest. no "tied selling" which is one policy is conditional on purchase of another
5)confidentiality
6) fee disclosure -not charge any fee in excess of premium charged by insurer UNLESS CLEARLY EXPLAINED IN WRITING
7)encouraging public respect-brokers can affect how the public views insurance
8)maintaining integrity of profession