New licensing requirement for corporations and partnerships conducting insurance business in the Yukon

3 minute read
05 March 2024

In 2023, Yukon Professional Licensing and Regulatory Affairs ("PLRA") introduced a new entity-level insurance agency licence for insurance intermediaries (corporations and partnerships) carrying on business in the Yukon. 

This change happened initially without any formal statement or guidance issued by PLRA. Previously, PLRA only issued insurance professional licences to individuals, including insurance agents and brokers, conducting insurance business on behalf of insurance agencies.

Change followed by guidance

Although the introduction of this entity-level licensing requirement preceded any formal guidance from PLRA, PLRA has eased the transition for entities attached to existing individual licensed insurance agents and brokers. Any insurance intermediary entities already represented by a licensed insurance agent or broker in the Yukon were automatically issued insurance agency licences by PLRA.

Following the implementation of this change, on January 25, 2024 PLRA issued Bulletin No. 320-2003-011, Corporate Insurance Agency Licence Requirements. Any insurance agency corporation or partnership not currently represented by a licensed insurance agent or broker in the Yukon, and who plans to seek licensing in the Yukon, must apply for an insurance agency licence.

Next steps

The insurance agency licences automatically issued by PLRA are valid until September 30, 2024. PLRA will be working with insurance agencies between January and June 2024 to ensure that insurance agencies conducting business in the Yukon are registered. PLRA will not charge fees for insurance agency licenses for the period ending September 30, 2024. Licence fees will come into effect for all insurance agency licences issued by PLRA effective September 30, 2024.

Intermediaries are instructed to contact PLRA to confirm whether a profile has been created for an insurance intermediary entity previously represented by a licensed insurance agent or broker.

Applying for an agency licence

In order to obtain a licence in the Yukon, insurance agencies must be sponsored by an insurer licensed in the Yukon and must be registered with the Government of Yukon's Corporate Affairs branch. A designated representative licensed in the Yukon must also represent insurance agencies. Applications for insurance agents and insurance agency licenses must be made through the PLRA's online portal. The change to license insurance agencies is intended to align with a similar approach across the Canadian provinces.

Our insurance regulatory professionals are committed to monitoring legislative and regulatory developments. We are pleased to address any questions that industry stakeholders may have about changes to licensing or market conduct requirements. Our Financial Services Regulation practice group is here to assist.

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