The Superintendent of Financial Institutions of Manitoba has released a Draft Regulation implementing the introduction of the incidental sellers of insurance (“ISI”) regime. When the Regulations are in force, Manitoba will be the third Canadian province, following Alberta and Saskatchewan, to implement an ISI or restricted licence regime.
The Draft Regulation outlines the eligibility requirements, classes of insurance for which a restricted licence can be issued, application process, and the responsibilities of licence holders and insurers. Like Saskatchewan, Manitoba will allow employees of a third-party or “qualified entity” to act under a restricted insurance agency licence, as long as the restricted licence holder has entered into a contract with the qualified entity which in the opinion of the Superintendent provides adequate consumer protection and control by the licence holder. The qualified entity does not need to obtain a licence itself. However, qualified entities are responsible for ensuring their employees comply with all required policies and procedures and for maintaining and providing the restricted licence holder with up to date listings of their employees.
The list of permitted classes of insurance for which a restricted licence may be issued includes the usual suspects like travel and mortgage insurance, among others, but also includes funeral expense insurance paying up to $15,000 for funeral services under pre-arranged funeral contracts; portable electronics insurance covering damage or loss to portable electronic devices; and rented vehicle liability and rented vehicle contents insurance, for liability arising from the operation of a rental vehicle and damage or loss of personal property in the rental vehicle. The Draft Regulation provides a definition of “rented-vehicle accidental injury or death insurance” but it is not yet listed as a permitted class, although presumably that is an oversight. The Draft Regulation provides specific disclosure requirements if rentedvehicle accidental injury or death insurance, rented vehicle liability or rented vehicle contents insurance are purchased.
In addition, the Regulation prohibits the restricted licence holder from using or releasing personal information given by the consumer in connection with the application for insurance coverage without the express signed consent of the consumer. The form of the consent must contain certain prescribed information.
Comments on the draft Regulation are open until July 2, 2013.