CORRECTION: Life Insurance Agents Compliance Report: 2017/18 Examination Results
INSURANCE • NOVEMBER 8, 2018
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The Financial Services Commission of Ontario (FSCO) has released its 2017/18 Life Insurance Agents Compliance Report.
FSCO conducted 132 on-site examinations and 94 desk reviews of higher- and medium-risk life agents, and found concerning trends in non-compliant activities.
Protect your business
To better protect yourself, your clients, and your business, ask yourself:
- Do you disclose to clients, in writing, all the insurers you represent?
- Do you complete the mandatory 30 hours of continuing education credits within every two-year licensing period?
- Do you have valid Errors and Omissions insurance coverage?
- Do you document your needs assessments, client discussions and recommendations to clients?
- If your client chooses not to follow your recommendation, do you get their written acknowledgment?
These are just some of your responsibilities as a licensed life agent. Make sure you understand all of your obligations under the Insurance Act and regulations, as well as industry best practices.
You should also review our new Treating Financial Services Consumers Fairly Guideline to understand FSCO's expectations and to better protect your clients and your business.
FSCO will continue to look for evidence of compliance with both legislative requirements and best practices during on- and off-site examinations.
As our year-over-year examinations have not shown a significant improvement in compliance, we will be taking action to address these trends. Read the full report to learn what steps we're taking.