Art Despard

Since this is my final message to you as President, I would like to thank you for this opportunity to serve my fellow brokers. I'd also like to thank my fellow Council members for the leadership and guidance I received throughout this year.

I have the pleasure of welcoming Gloria Shan as our newest public member of Council. The Lieutenant Governor-in-Council made Gloria's appointment last June. With the annual election ahead, I must also say goodbye to Andrew Osbourne and Beverly Lannon, who have decided not to re-run for election.

By now you should have received an important package from RIBO containing: election material, a copy of the Annual Report and a Notice of Meeting for the Annual General Meeting in November. If you have not received this package, please contact Susan MacKenzie at the RIBO office.

Please take the time to read the Annual Report since it presents a synopsis of our year, along with our financial statements. The pages summarize the work of a dedicated Council and staff in our mission to protect the public and regulate the profession. If after reading the Report you have any questions or comments, please feel free to contact any Council or staff members.

I also encourage you to read through the election material very carefully to ensure that your ballot is properly completed. Ballots incorrectly filled out cannot be counted. Please exercise your right to vote by returning your ballot no later than November 6, 2000 at 4:00 p.m.

As you will read in Beverly Lannon's Marketing and Communication's Report, we have added another section to our Website. The "News & Updates" section is designed to keep brokers up-to-date on any issues between Bulletins.

In the past few weeks RIBO has received three papers for comment, including the Ministry of Consumer and Commercial Relations Consultation Paper on the Proposed Ontario Privacy Act; the Discussion Paper on the proposed merger of the Ontario Securities Commission and the Financial Services Commission of Ontario entitled, "Improving Ontario's Financial Services Regulation: Establishing a Single Financial Services Regulator"; and FSCO's Draft Policy on Automobile Insurance Rates and Distribution System Costs and requests for comment. Keep checking the "News & Updates" section of our Website for updates.

Council and staff are always interested in meeting and talking with our membership. In the next few months there will be two excellent opportunities to do just that: at our booth at the IBAO Annual Convention (October 18-20) and at RIBO's Annual Meeting on November 8. If you can attend either event, please do come by and say hello.

Thank you again for your support.

Yours truly,

Art Despard

Beverly Lannon
Chairperson

New Website Section

RIBO Council and staff recognize the vast size of our province and the importance to reach out and communicate to as many members as possible. We made a special effort this year to attend as many events as our schedules would permit in an effort to learn about the issues affecting brokers. We found these face-to-face meetings very informative and appreciate the effort brokers made to talk with us.

Thanks to those of you who approached us, it has become increasingly clear that brokers from all areas of the province are having trouble keeping up with all the changes to our industry.

As a regulatory body it is our responsibility to help brokers stay on top of an increased amount of complex information. To do this we have added a "News and Updates" section to the Website. Here you will be able to find any changes or the latest information about issues pertinent to brokers as soon as we learn about it. As always, this information will be printed in the next Bulletin, but now you will have access to it before the next issue goes out.

The only way this new initiative can keep you up-to-date is by you making the effort to access our Website. So please do check it out and let us know what you think.

The Website also offers current listings of continuing education courses, Bulletins, and a contacts list of RIBO staff and Council members. Also available on our site is a blank Position Report, which can be electronically downloaded to the brokerage.

Since I will be retiring from RIBO Council in November I would like to end my final report to you by thanking the membership, my fellow Council members and RIBO staff for an amazing and fulfilling three years.

November 6, 2000 is Election Day. Every member in good standing is entitled to vote for three candidates. You have received a nomination book, including information about each candidate up for election.

Please follow the instructions outlined on the back of the return envelope. All ballots must be received at the RIBO office by 4:00 p.m. on November 6, 2000.

EXERCISE YOUR RIGHT TO VOTE!!

It is with deep regret that we advise brokers of the death of Jack Aldrich. Jack was one of the "founding fathers" of RIBO and served as President from 1982 to 1984.

Brian Hitchlock
Chairperson

Once again the continuing education deadline is upon us. Over the last few weeks we mailed follow-up letters to individuals who informed us that they have partially or not completed the required hours. We have received requests from some of those individuals to extend the deadline past September 30. We have no authority to do this. If we do not receive suitable evidence of completion by September 30, 2000 licenses will be suspended until they are once again in full compliance.

Over the last few months we have reviewed a few cases where corporations and individuals are holding themselves out in a manner other than the name in which they are registered. This is an act of misconduct under Regulation 991 Section 15 (1) 6. which states:

"15. (1) 6. Holding oneself out or advertising by means of advertisements, cards, circulars, letterheads, signs, or other methods, or carrying on business in any other manner than the name in which the individual or the corporation or partnership of which the individual is the designated representative is registered."

If you are in any doubt on how to hold yourself out, please contact Lilian Croucher or Vivian Lee.

Over the last three months the Qualifications and Registration Committee reviewed 30 requests for secondary business exemptions of which 13 were for the sale of mutual funds.

On July 12 the Committee also reviewed and granted a request to various brokerage firms who entered into a strategic alliance with ING Canada Inc. This allowed them to set up a separate Financial Services Division within the brokerage firm, which would be serviced by a licensed advisor (other than a RIBO licensed individual). The licensed advisor will distribute and service financial products provided the brokerage obtains the client's consent in advance, prior to the advisor contacting them.

Thank you for the opportunity to serve as your Qualifications and Registration Committee Chairperson. It's been a pleasure working with Lilian Croucher and the Q & R staff. A special thanks goes to my fellow Committee members and the volunteer sub-committee members for their commitment in furthering the professionalism of our industry.

The winner of this year's Chris Ward Memorial Award is Marc Hupe of Groupe Lyras Inc. He received a combined total of 86% on the Level II removal of restriction examination. This award is presented in memory of RIBO's late president Christopher J. Ward, to the individual who receives the highest mark on the first attempt at both sections of the Level II examinations. We look forward to congratulating Mr. Hupe at the Annual Meeting on November 8, 2000.

The Council and staff would like to congratulate Mr. Hupe on his achievement. A formal presentation of this award will be made at the Annual Meeting on Wednesday, November 8, 2000.

Wednesday, November 8, 2000
MARK YOUR CALENDAR

The Nineteenth Annual General Meeting of the membership of the Registered Insurance Brokers of Ontario will take place on Wednesday, November 8, 2000, starting at 2:00 p.m. in Pier 5 at the Toronto Westin Harbour Castle.

A formal notice of meeting, annual report and proxy form has been mailed to each registrant in good standing.

Besides the usual business covered at every Annual Meeting, you will have an opportunity to meet and talk with this year's Council members, incoming members, senior management and many other valuable members of the RIBO staff.

All registrants in good standing are eligible to attend and to vote on matters brought before the meeting. A list of members who are qualified to vote will be available for review in the RIBO office during business hours.

Any member unable to attend the meeting is encouraged to submit a proxy to register their vote on questions that may be raised at the meeting.

RIBO Council and staff would like to take this opportunity to thank Sharon Bentley, George Martin, Karla Poirier and Crystal Skyvington on ten years of outstanding service.

Pictured from left to right: Sharon Bentley, Complaints Officer; George Martin, Manager Administration & Finance; Karla Poirier, Senior Administrative Clerk; and Crystal Skyvington, Senior Investigator.

Reprinted with Permission from the Financial Services Commission of Ontario

The Financial Services Commission of Ontario (FSCO) is concerned about the use of negative option billing (also known as negative option marketing) as a marketing practice by insurance companies, whereby consumers are charged for a new product or service before they have consented.

FSCO does not support negative option billing. Insurers are asked to refrain from engaging in this practice.

For example, in the property and casualty insurance sector, consumers benefit from the automatic renewal of their policies. However, consumers may not be aware when a change has been made to their policy and that there is an additional charge, particularly where consumers pay by automatic monthly premium installments. FSCO also recognizes that some insurance contracts contain provisions that allow the insurer to adjust the coverage and the resulting premium on renewal (i.e. Inflation Protection) and these types of contractual provisions are acceptable provided that consumers are made aware at the point of sale.

FSCO continues to stress the need for improved disclosure and consumer information by the insurance industry. Insurers, agents and brokers are encouraged to actively sell insurance coverage by clearly explaining the benefits and costs to consumers. Consumers have a right to make an informed decision.

As you may be aware, the unfair and deceptive acts and practices provisions are now in Ontario Regulation 7/00. As part of a broader review of this Regulation, FSCO will consider recommending that negative option marketing in the sale and renewal of insurance policies be included in the list of prescribed unfair practices. Stakeholders will be consulted on any proposed amendments.

FSCO Contact

If you have any questions, please contact Ms. Maria Policelli, Senior Policy Analyst in FSCO's Policy and Communications Branch, at 416-590-7275; fax 416-590-7070.

Dina Palozzi
Chief Executive Officer and
Superintendent of Financial Services

August 28, 2000

Clarification of Step Two in Commission Transfer Outline

A letter sent to Principal Brokers outlining Commission Transfers has prompted further clarification of one step of the "Three-Step Approach". Due to inquiries concerning Step Two, calculation of the commission receivable element of the net trust position, we have reviewed whether or not the premium should be multiplied by average commission 15% or by the factor 15/115.

We conclude that because the commission is included within the premium and not added on to the premium, we should multiply by 15%. Consequently, in our example the commission receivable element is $165,094 x .15 = $27,764. When using the "Three-Step Approach" simply multiply by the average commission.

Once again, your input has proven that working together we can regulate the industry for the betterment of all. If you need further assistance, please contact Tim Goff, Michael Buck or Winston Koo.

Gloria Shan

We would like to welcome Gloria Shan to RIBO Council. Appointed by the Lieutenant Governor in Council, Gloria is already a familiar face around RIBO having served as a public member on the Complaints and Discipline Committees since 1997.

Gloria began her career in retail and held several high profile management positions, including Director of Operations for RICCI. She now works in tourism and designs local tours for grand tour operators, convention boards, marketing companies and acts as host at conventions and special events. She has been nominated for a Toronto Tourism Award for exhibiting outstanding service.

Besides her appointed position with RIBO, Gloria holds a public position with the Toronto Licensing Commission and is a former Chairperson to York Region's Unemployment Insurance Board of Referees.

Gloria is very active in her community and has worked as a volunteer for the Forest Hill School Board, the Mount Sinai Hospital Ball Committee and is founding member of both the McGill Club and the Canadian Tour Guide Association (Toronto Chapter).

Council and staff look forward to her involvement over the next few years!

CAUTION:

While the information contained below is public, members should take caution that inappropriate use of this information may be considered to be misconduct.

Gordon Collins
Registration No. R15635
Toronto, Ontario

MISCONDUCT: Ont. Reg. 991, s14(3); s15(16)

PARTICULARS OF THE COMPLAINT

• Failure of the member as a principal broker to properly supervise brokers whose registration is restricted to acting under his direction and supervision.
• A member broker under the supervision of Mr. Collins completed an application for automobile insurance for a client and entered an incorrect effective date of the policy term. The application was not subsequently received by the insured until approximately 2 months later, leaving a gap in coverage.
• The member who completed the application was informed of the date error, but no action was taken by that member, nor Mr. Collins, the Principal Broker, in a timely fashion, to correct the error.

• The Discipline Committee accepted a plea of guilty by Mr. Collins to the alleged misconduct.
• Mr. Collins was reprimanded for his misconduct.
• In addition, Mr. Collins was fined $5,000.00.

Additions
2984		PLATINUM INSURANCE BROKERS LIMITED	MISSISSAUGA
2987		JOANNE WOOD INSURANCE BROKER	WASAGA BEACH
2989		GRAY ROCK INSURANCE BROKERS LTD.	TORONTO
Deletions
28		ALBION BOLTON INSURANCE BROKERS LTD.	BOLTON
148		BEAVERBROOK INSURANCE LIMITED	Richmond Hill
240		BRAMALEA INSURANCE BROKERS LIMITED	BRAMALEA
304		GAVIN DUFFY INS. GRP. LTD. DIV ROBERTSON MCCONNELL & R.M.BURNS	KINGSTON
335		IAN CAMERON INSURANCE BROKERS LTD.	NORTH YORK
427		CLEARWAY INSURANCE BROKERS INC.	MISSISSAUGA
477		COWLING & KEARNS INSURANCE BROKERS LIMITED	MEAFORD
662		RAY C. EDWARDS INSURANCE BROKERS LTD.	HAMILTON
666		ELECTIVE BENEFIT SERVICES INSURANCE BROKERS INC.	WATERLOO
722		FIRMAN INSURANCE BROKERS LTD.	TORONTO
729		P. FITTERER REAL ESTATE & INSURANCE LTD.	SCARBOROUGH
776		GAMMON INSURANCE BROKERS LIMITED	MISSISSAUGA
790		GEORGIAN BAY INSURANCE BROKERS LIMITED	MEAFORD
847		GRCS INSURANCE BROKERS INC.	MISSISSAUGA
1026		J. LINDSAY HYLAND INSURANCE BROKERS LTD.	SUDBURY
1146		KINGSVILLE INSURANCE BRKS.LTD. O/B WILL INS & ASSOCIATES LTD.	LEAMINGTON
1229		LBN INSURANCE BROKERS INC.	MARKHAM
1370		I. MARTIN INSURANCE BROKERS LIMITED	UXBRIDGE
1374		MASSON INSURANCE BROKERS LIMITED	ALEXANDRIA
1622		JOHN A NIXON BROKER LTD.	BARRIE
1759		PLAN-ESTATE INSURANCE BROKERS (1997) LIMITED	NORTH YORK
1962		ARNOLD SHAW INSURANCE BROKER LIMITED	SIMCOE
1969		SHERIDAN & ASSOCIATES INSURANCE BROKERS LIMITED	ST. THOMAS
2052		SPURGE NEAR INSURANCE BROKERS LIMITED	SCARBOROUGH
2087		CLAUS STRAHL INSURANCE BROKER LTD.	OTTAWA
2197		WM UBBENS LIMITED	TORONTO
2281		WH & C INSURANCE BROKERS LTD.	KINGSTON
2369		CLASSIC EQUINE INSURANCE BROKERS LTD.	TORONTO
2370		GRAHAM-ROBERTSON RICKARDS & PAUL INSURANCE BROKERS LIMITED	TORONTO
2445		WILL INSURANCE & ASSOCIATES LTD.	LEAMINGTON
2475		BOSHCOFF & ASSOCIATES INSURANCE LTD.	THUNDER BAY
2596		MANITOULIN INSURANCE BROKERS O/B 996508 ONTARIO INC.	SUDBURY
2747		VINCE-JONES-DESLAURIERS INSURANCE BROKERS LIMITED	TORONTO
2798		VV INSURANCE & RISK MANAGEMENT	MISSISSAUGA
2954		ANCASTER INSURANCE BROKERS LTD.	HAMILTON