On 9 November 2022, the Financial and Consumer Services Commission (FCNB) received Ministerial Approval to adopt Rule INS-001 Insurance Intermediaries Licensing and Obligations and Rule INS-002 Insurance Fees.
The Rules are expected to come into force on 1 February 2023. Updates to the regulatory framework, resulting from changes to the Insurance Act¸ will result in the repeal of five existing regulations:
- Adjusters Regulation (Regulation 2009-52),
- Agents and Brokers Regulation (Regulation 95-5),
- Licence and Examination Fees for Agents and Brokers Regulation (Regulation 83-197),
- Licence Revival Fee Regulation (Regulation 84-73), and
- Life Insurance Agent Licensing Regulation (Regulation 2003-36).
The Rule INS-001 Insurance Intermediaries Licensing and Obligations provides full details of the updated licensing requirements for insurance intermediaries in New Brunswick. In summary, the Rule outlines the following:
- The licensing requirements for all insurance intermediaries, which include a simplified framework for adjusters and general insurance agents;
- The transitional provisions that provide detail for current licensees who will have their licence types updated under the new licensing framework;
- The new licensing framework for an agency, adjusting firm, and managing general agent licence type;
- The new licensing framework for a restricted insurance representative for the incidental sale of insurance products;
- The educational and experience requirements for intermediaries;
- The updated eligibility criteria for a two-year licence;
- The errors and omissions insurance requirements for intermediaries;
- The supervision requirements for intermediaries;
- The market conduct standards and prohibited activities for intermediaries; and
- The updated trust account requirements.
Rule INS-002 Insurance Fees outlines the non-refundable application fee information for all licence types.
The Insurance Division of FCNB expects current insurance industry licensees (Insurers and Intermediaries) to familiarize themselves with the Rule INS-001 Insurance Intermediaries Licensing and Obligations; allowing them to comply with the licensing and market conduct expectations when the Rule comes into force.
Insurers are also expected to communicate with all firms in their distribution networks to ensure the new licensing requirements for agencies, managing general agents, adjusting firms and restricted insurance representatives are understood. Firms must be prepared to become licensed by submitting the appropriate application through the FCNB licensing Portal. Current and potential licensees should add email@example.com to their safe-senders email list settings to ensure they receive communications from FCNB.
Once Rule INS-001 Insurance Intermediaries Licensing and Obligations comes into force on 1 February 2023, agencies, adjusting firms and managing general agents conducting insurance business in New Brunswick will have up to 60 days to submit a completed application to obtain the licence. Businesses that will be required to obtain a Restricted Insurance Representative licence, as defined in the Rule, will have up to 90 days to submit a completed application to obtain the licence. Applications may be submitted via the FCNB licensing Portal beginning 1 February 2023.
FCNB will provide additional information in future communications on the following topics:
- Transition provisions for existing intermediary licensees;
- Supervision expectations; and
- Responsibilities of the Designated Representative for agencies, managing general agents, adjusting firms and restricted insurance representatives.
For any questions on this notice or the implementation of the Rules, contact the Insurance Division of FCNB at 866-933-2222 or by email at firstname.lastname@example.org.