On Feb. 6, 2024, the Insurance Council of British Columbia ("Insurance Council of BC") announced changes to general and adjuster licensure requirements as part of an ongoing multi-year initiative to review and update the Insurance Council's rules ("Council Rules"). These changes will remove ownership and management requirements for Level 3 insurance adjusters and Level 3 general insurance agents.
Current requirements
British Columbia's Financial Institutions Act provides for licensing requirements for both entities and individuals. A licensed partnership or corporation is required to nominate an individual who is a licensed insurance agent or licensed insurance adjuster to exercise the rights and privileges conferred by the license on behalf of the licensed entity.
Council Rules provide for different levels of licensing for general insurance agents and insurance adjusters and require that the licensed entity's nominee hold a Level 3 licence. Council Rules also require that every general insurance nominee and general insurance agency ensure that all insurance activities be supervised by a Level 3 general insurance agent.
Currently, Level 3 insurance adjusters and Level 3 general insurance agents must be an officer, director or partner of, or hold management responsibilities within the adjusting firm or general insurance agency. This causes confusion and creates unnecessary burden for licensees changing jobs or representing more than one licensed entity, where they have a management position with one entity and not the other.
Impending changes
Effective April 1, 2024, adjusters and general insurance agents will not require a management or ownership role to qualify for a Level 3 adjuster or a Level 3 general insurance agent licence. The qualification for a Level 3 licence will be based entirely on education and experience.
Licensees who currently qualify for a Level 3 licence, but who are not in a management or ownership role, will be eligible to update their Level 2 licence to a Level 3 licence. Licensees will be able to apply for licence upgrades through the Insurance Council website portal.
Licensing and regulatory questions
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. Our Insurance and Professional Liability and Financial Services Regulation practice groups are here to assist.