Active Member Firm

An active member firm registration is required for any business (sole
proprietorship, partnership or corporation) that wishes to transact general
insurance or be identified in any way to the public with general insurance.
Registration must be completed prior to the business conducting any general
insurance business in the name applied for.


Each firm must appoint a broker holding an "Unrestricted" registration to
act as the Principal Broker responsible for the direction and supervision of the firm and its employees. The Principal Broker is also responsible for the compliance of the business with the RIB Act, Regulations and By-laws.


As a broker must be able to provide some choice of produce to a consumer and
the Compulsory Automobile Insurance Act requires that an application for
automobile insurance be provided when requested, two (2) letters of intent
from contracted insurers must accompany the application for registration.


For a corporation, the majority share ownership requirement or Ontario
Regulation 991, Section 6(1)(c) was revoked and replaced with a disclosure
requirement. In a partnership, the majority of equity and voting interest
must be held by brokers.


Active member firms must have an Ontario "Place of Business" address and/or
an attended Ontario "Mailing Address" regardless of principal place of
business.

To apply for a active member firm registration, the following must be submitted:

  1. fully completed and signed Application for Insurance Business Registration Form - Active Member.

  2. verification of business identity: Sole proprietorship - copy of registration of "Trading Name" to be used Partnership - copy of registration of partnership under the Partnership Registration Act Corporation - copy of Articles of Incorporation

  3. certificates of mandatory insurance to satisfy the following minimum requirements: (a) Professional Errors and Omissions Liability insurance of at least $1 million per claim, $2 million aggregate (b) Fidelity Bond of at least $100,000 per claim The policies must be underwritten by insurers licensed in the Province of Ontario and must indicate they are subject to special RIBO endorsements. It is the Broker's responsibility to ensure that the requisite insurance coverages are maintained and that renewal or continuation certificates are provided to RIBO each year.

  4. opening Position Report (Form 1) The 'Reporting Date' on the face of the Report should be the date on which the figures are provided to RIBO. The opening Position Report for a new business will show a 'nil' trust balance inasmuch as business may not be conducted nor premiums collected until the Broker business has been registered by RIBO. There must be evidence that a trust account in the business name has been established in Ontario unless specific exemption is obtained from RIBO Council. The Position Report must indicate Equity in the business of at least $2,500 in the case of a Sole Proprietor, or a minimum of $5,000 in the case of a Partnership or Corporation OR IN ANY CASE such higher amount of equity as is required to equal the SUM of the combined deductible amounts applying to the Errors and Omissions and the Fidelity bond policies which must be carried by a Broker business. In the case of a corporation, the source of equity reported (line 36) must be identified under items 31, 32, 33, 34 and/or 35. There is a condition that if a shareholder loan is injected into the Corporation to fulfill the equity requirement, an Undertaking is required to be completed and signed by all interested parties that this loan will not be removed in whole or in part if such removal of funds would cause an equity shortfall.

  5. appropriate registration fee