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.
Active member firms must have an Ontario “Place of Business” address and/or an attended Ontario “Mailing Address” regardless of principal place of business.
The brokerage office must be separate to ensure confidentiality of conversations and the contents of client files and to provide security for trust monies awaiting deposit. The premises of the brokerage office must also be clearly identified to avoid any confusion on the part of the consumer as to the independence of the brokerage operation from other businesses on the premises.
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 – Firms.