LLQP Exams Resume in Vancouver Location Life Licence Qualification Program (LLQP) exams have now resumed in our Vancouver location. Exams follow strict physical distancing and other COVID-19 prevention measures. We are currently accepting new registrations for exams in our Vancouver location only. Exams in Surrey and in locations outside of Metro Vancouver continue to be suspended until further notice. Registrants whose exams were cancelled in the months of March to May 2020 will be given priority to schedule their exams. For more information about how to register for an exam, please visit our COVID-19 update page.
Status of Temporary Rule Change for Level 1 Location Restriction In March, to support insurance licensees’ ability to work from home to prevent the spread of COVID-19, the Insurance Council successfully obtained an urgent amendment to Rule 6(1)(b) from the Minister of Finance to temporarily suspend the restriction that prohibits Level 1 General Insurance Salespersons from carrying out general insurance business in any place other than the premises of the licensee’s insurance agency. Rules changed under the process for urgent amendments are effective for a temporary nine-month period, reverting back to their original state unless repealed or revoked before that time. We are currently gathering data regarding the impact of the rule change over the last three months to assess what next steps should be taken regarding the temporary status of Rule 6(1)(b). We will provide an update when this information becomes available.
Government Actions Aim to Address Increasing Cost of Strata Insurance Last week, the BC Financial Services Authority (BCFSA) released an interim report of its findings regarding the rising costs of strata insurance. The report assessed the strata insurance market in BC as being in an “unhealthy” state, highlighting a number of indicators leading to this conclusion. The interim report is available on the BCFSA website, with a full report expected this fall. Yesterday, the provincial government announced actions it was taking to address the rising cost of strata insurance. Legislative changes are being introduced to increase clarity and transparency around depreciation reports, strata corporations’ insurance requirements and coverage, notification, as well as commission and compensation. Of particular relevance to insurance licensees, the legislative amendments will discontinue the practice of referral fees paid by insurers or insurance brokers to property managers or other third parties. They will also pave the way for requirements for brokers to disclose the amount of commission received, and stronger notification requirements for changes to insurance coverage and costs, or an intent not to renew. The Insurance Council of BC will continue to engage with government and other stakeholders on this matter, and will be working towards ensuring that implementation of these measures supports regulatory effectiveness. The full announcement from the Province is available on the government’s website.
Consultation on Proposed CE Guidelines Underway We are seeking your feedback on proposed Continuing Education Guidelines for implementation in 2021. Your input will help inform Council’s decision-making process as it considers adopting these guidelines. On June 12, licensees were emailed a link to a consultation survey on the guidelines, inviting participation. If you haven’t done so, you can complete the survey here before it closes on July 17, 2020. Consultation on the guidelines will remain open until the end of July. For more information about the guidelines and how we are consulting, see the consultation page on our website.
Disciplinary Decisions Michael Anthony Edwin Crowe and Advantage Benefits Plus Inc. dba Provident Firefighter Benefit Services were disciplined for contravening the Insurance Council’s Rules and Code of Conduct by purchasing website domain names in the name of a competitor in order to redirect consumers to the agency’s website. The licensee and the agency were found to have misled the public and failed to act in good faith and in the usual practice of dealing with other licensees. The licensee was fined $10,000. The agency was fined $20,000. The licensee and agency were jointly and severally assessed hearing costs of $3,402.50. Gagandeep Singh Dhillon was charged for alleged offences under the Criminal Code of Canada involving identity theft, unauthorized use of credit card data, fraud over $5,000, careless use or storage of a firearm, and possession of property obtained by crime. Based on the nature of the charges, Council determined that the licensee represents a risk to the public and, as such, suspended his licence under sections 231 and 238 of the Financial Institutions Act until an investigation by Council staff is complete and Council has made a determination as to the licensee’s suitability to hold an insurance licence. Jian Guo Han was disciplined for contravening the Insurance Council’s Rules requiring licensees to maintain errors and omissions (E&O) insurance and complete continuing education (CE). The licensee failed to maintain E&O insurance from February 2 to May 27, 2018 as well as complete the minimum CE credits required for three licensing years. The licensee was fined $2,000 for the E&O coverage breach and $3,000 for the CE breaches ($1,000 for each year). He was also required to complete the missing CE credits and the Council Rules Course. Prestige Insurance Services Ltd. dba Perpetual Insurance Services and Alexander Hamilton Cheung Hin Nam were disciplined for contravening the Insurance Council’s Code of Conduct in relation to a privacy breach that occurred as the result of a move by the agency to new retail premises. Three boxes of client documentation were inadvertently left behind and discovered by the incoming tenant. The agency was reprimanded and assessed investigative costs of $1,000. The nominee was required to complete a privacy course and the Council Rules Course. Sentinel Financial Management Corp. and Merlin Henry Chouinard were disciplined for contravening Insurance Council Rules by failing to notify Council of disciplinary action by the Mutual Funds Dealers Association of Canada and of a change in the agency’s ownership. The agency was fined $1,500. The former nominee was fined $1,000 and required to complete the Council Rules Course in advance of Council considering any future licensing applications from him. Troy Wotherspoon Insurance Services Ltd., Lung Hwa (Andy) Tan (the licensee), and Troy John Wotherspoon (the nominee) were disciplined for contravening the Insurance Council’s Code of Conduct by failing to bind a storage insurance policy. The licensee was found to have failed to act in the usual practice of dealing with clients. The nominee was shown to have demonstrated a lack of good faith in dealing with the clients. The agency was found to have had a lack of administrative procedures in place to prevent the error from occurring. The licensee and the nominee were each fined $1,500 and required to complete the Council Rules Course and an errors and omissions course. The agency was fined $2,000 and assessed investigative costs of $2,712.50. See all disciplinary decisions on our website.
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