Principal Broker To be eligible, an individual must be personally registered as an insurance broker and hold an "Unrestricted" class of license. The individual must also be a Director and/or Officer of the corporation, a partner of the partnership or a full-time employee and/or sole proprietor of the sole proprietorship with authority to act in the name of, and on behalf of the firm, regarding information filed to comply with all RIBO requirements. The Principal Broker must be familiar with the RIB Act, the Regulations and the Code of Conduct to fulfill the Principal Broker obligations and may be held personally responsible for the improper acts of the firm and/or employees. Responsibilities The provision of direction and supervision by the Principal Broker shall include but not be limited to the following: to ensure that all registered insurance brokers who are employees or partners comply with the Act, regulations and by-laws; to ensure that all registered insurance brokers who are employees or partners are provided with and use all information respecting insurance necessary for them to act in accordance with the Code of Conduct and without misconduct or incompetence as defined or described in the Act and/or regulations; to ensure that all registered insurance brokers who are employees or partners know and act in accordance with the Code of Conduct set forth in the regulations; to ensure that all trust accounts and books, records and accounts are maintained in accordance with the regulations; to ensure that all errors and omission insurance, and/or other forms of financial guarantee, and all fidelity insurance are maintained in accordance with the regulations; to ensure that all required filings are made and prescribed fees and assessments are paid in accordance with the regulations; to ensure that no director, partner or employee who is not a registered insurance broker acts as an insurance broker; and to ensure that procedures are established and followed such that the requirements of sub-paragraphs (i) through (vii) are met. In discharging these responsibilities, the Principal Broker shall be required to exercise reasonable diligence only. Deputy Principal Broker The Principal Broker may appoint one or more persons to act as a Deputy Principal Broker with specific powers and duties delegated to them. Notice of the appointment must be forwarded to RIBO within 30 days and signed by both parties. A Deputy Principal Broker must meet the same eligibility requirements necessary for Principal Brokers. The Act, Regulations and the By-laws continue to apply to the Principal Broker regardless of the appointment of a Deputy Principal Broker. Branch Offices Branch Offices Any firm (sole proprietorship, partnership or corporation) that conducts business from a location other than the head office on a regular basis, such as associates operating from their homes, must consider these locations as branch offices. All such locations MUST be included in the firm’s supervisory procedures. Care must be taken with respect to home offices to ensure a meaningful level of support and management is provided by the Principal Broker and any Deputy Principal Broker. Information that will be required from the Principal Broker to update RIBO records on branch locations include: Address, telephone and fax numbers. Who is responsible for this location?Is the Principal Broker responsible or has a Deputy Principal Broker has been appointed for this location and if appointed, who has been appointed. A listing of individuals working from this location. Whether or not the branch location is to receive separate mailings from RIBO or is all mail to be directed to the Principal Broker at head office. Only Business Requirements Ontario Regulation 991, Sections 6 and 7, outline the registration requirements for a corporation, partnership and sole proprietorship. It is legislated that the "only business" of a firm be that of an insurance broker, or an insurance broker/life agent. An application for a Secondary Business Exemption must be made to the Qualification and Registration Committee for any other business involvement. The Principal Broker submits a letter of request outlining the details of the other business. A firm must be granted an exemption from the Qualification & Registration Committee prior to any involvement in the other business. Firms applying for an exemption to sell non-insurance financial services must also submit a completed Financial Products Application Form for Firms. Annual Financial Reporting Option It is requirement of registration that firms file both a semi-annual and year-end financial position by completing a Position Report or Form 1. A firm may apply for an exemption from this requirement and file on an annual basis an audited or review type financial statement prepared by a member of a recognized accounting body within 90 days of the fiscal year end. For complete details, please refer to Application for Financial Reporting Exemption. Unlicensed Insurers Any insurer not licensed under the Insurance Act is referred to as an "unlicensed insurer". Ontario Regulation 991, Section 10, outlines the requirements for a broker placing coverage with an unlicensed insurer. The consumer must be informed at all times that there are several risks associated with entering into a contract with an unlicensed insurer. The orderly payment of claims may be more difficult and the Superintendent has no authority over this insurer. In order for the broker to protect both themselves and the consumer, written consent must be obtained from the consumer for whom they are acting. The broker must also ensure that sufficient insurance cannot be placed for a reasonable premium with a licensed insurer. It is worth the effort to conduct extensive research into the licensed companies prior to initiating a contract with an unlicensed insurer when compared to the potential problems involved if an unlicensed insurer is unable to meet its commitments. Brokers placing business through wholesalers are also obligated to ask if the business is being placed with licensed insurers. RIBO requires brokers to complete an Unlicensed Insurer Client Consent and Acknowledgement of Risk form when advising consumers on placing coverage with an unlicensed insurer.