Art Langley

With spring just around the corner, it is a good time to examine the challenges facing brokers today. As change continues to mark the insurance industry in Ontario and around the world, the task of adapting to it presents an increased challenge to us all.

As I prepare this report, RIBO Council and staff are preparing to meet for our annual strategic planning session to discuss some of the challenges were facing. Over several days we plan to review current regulations and discuss the state of the industry. Our objectives during these discussions are to protect consumers while at the same time allowing brokers to remain competitive and stay on a level playing field. RIBO realizes that we must be flexible and respond quickly if necessary to changes in our environment, while maintaining our mandate of consumer protection. We welcome your comments regarding any regulatory concerns you may have.

Some of the items on our agenda include ownership, principal occupation and wholesale brokers. We will provide you with a synopsis of our discussions in the Summer Bulletin.

One of the perks I receive as President is the opportunity to represent RIBO at industry events across the province. In the past few months I've already attended several events in Toronto and I'm certainly looking forward to travelling to other events in the coming months. So, if you spot me, or any other Council or staff member, wearing a RIBO nametag please come up and introduce yourself. We are always interested in what you have to say.

We continue to make Council and staff available for your meetings and get-togethers. Please let us know if you are holding a meeting and would like someone to provide a RIBO update or speak on a specific topic. We are always happy to attend. Just give Susan MacKenzie (susan@ribo.com) at RIBO a call and she'll make all the arrangements.

Working together Council and staff will continue to monitor the changes within our industry, looking for better ways to serve both consumers and brokers alike.

Art Langley

The Office of the Superintendent of Financial Institution Canada (OSFI) has issued a warning notice regarding a fictitious company, Empire Financial Group, of Newmarket, Ontario, and a related entity, Reliance Insurance Company (not connected with the Reliance Insurance Company, a legitimate insurance company). Neither entity is authorized as a Canadian financial institution. For more information, please contact to OFSI (www.osfi-bsif.gc.ca) or Phonebusters (www.phonebusters.com).

Rod Finlayson
Chairperson

It is hard to believe how quickly our industry is changing. For the majority of us this is perhaps the most challenging time we have had to face. However, change brings with it the opportunity for us to work together to secure a strong future for the independent broker.

There seems to be no shortage of individuals interested in becoming brokers. The Qualification and Registration staff have been kept extremely busy keeping up with the flow of new candidates. Throughout the last quarter of 2002 we have processed approximately 500 new applications.

Regrettably for some candidates we have had to suspend the RIBO regulations reciprocity exam when we received information that it had been compromised by a group of individuals who wrote it. We are presently rebuilding our exam bank. Candidates were offered the full exam as an alternative.

I would like to remind you to take advantage of the Broker Resources section of our Website. You can download some applications as well as many regulatory forms, including the Unlicensed Insurance Client Consent form, which seems to be in demand these days.

The rapid changes that are occurring in our industry will require this committee and Council to address some key issues. We will keep you updated on our progress through the Bulletin and our Website.

Over the last three months we reviewed 40 requests for secondary-business exemptions. Fourteen individuals were granted exemptions to sell financial products, while 26 were granted other secondary occupations. The committee also held hearings to confirm a proposal to refuse the waiving of the Unrestricted Management exam and a proposal to revoke a brokerage firm registration for non-compliance of the principal broker requirement. A decision in the hearing for a secondary-business exemption is pending.

Both the Qualification and Registration staff and I are pleased to assist you. Please do not hesitate to contact us.

We would like to remind Principal Brokers that it is their duty to meet the requirements of Bylaw #20 (notifying RIBO within 30 days of any pertinent information changes relating to the brokerage records; this includes individuals joining or leaving the brokerage). We appreciate prompt notice of these changes.

Frequently, member brokers approach RIBO for information on another registered broker. Usually this takes place when they are considering hiring a new employee.

RIBO staff members are subject to the confidentiality clause regarding any RIBO matters. Therefore, we cannot provide any information (other than the basics), on any registered broker without first receiving a written release addressed to RIBO, signed by the individual broker.

If you wish to obtain any background information from RIBO on any registered broker, you should ask the broker to sign a "release of any information" form, which gives their consent and which you can then send to RIBO. At this point we can release any information in a person's file.

Please ensure that both the Bulletin and the Continuing Education Summary are distributed to all staff including staff in branch offices.

When a member of the public seeks insurance coverage of any kind, the responsibility of all brokers is to assess the client's needs and advise them on the appropriate coverage to meet these needs from insurance markets and facilities open to that broker. Due to current market conditions, it is essential that brokers inform both existing and potential clients promptly if they are unable to place their business.

Because it is easy to get caught up in the pressures of day-to-day business, the need to give information to prospective clients is sometimes not adequately dealt with. The impression left with these members of the public not only reflects on the broker, who did not take the time to help as he or she should have, but also reflects on the brokerage industry as a whole.

The duty to serve a client's best interests means surveying available markets and may also mean advising the client that a competitor may have a better product or price if a broker is unable to properly service the client's needs.

Please refer to the FSCO Bulletin (Permission has been granted to print and distribute Bulletin No. A-06/02) inserted in this issue of the RIBO Bulletin.

Please take note that the pre-inspection requirement established in January 1997 has been rescinded. Those insurers who wish to continue with this process must file new underwriting rules. Please take direction from your respective insurance companies. Regulations have yet to be finalized for the remainder of the auto changes listed in this FSCO Bulletin. A significant part of the proposed changes will be the application of a deductible where there is theft of the entire automobile. Principal brokers should ensure that all members of their staff dealing with the public are educated on these changes in order to advise clients of coverage options. For copies of recent Bulletins on auto changes refer to the FSCO website (www.fsco.gov.on.ca).

There have been an increasing number of enquiries in recent months concerning the use of service fees, both from brokers wishing to discuss the issue and consumers who have been asked to pay extra amounts.

To clarify, Regulation 991, Section 14 (8):

A member shall not stipulate, charge or accept any fee that is not fully disclosed, or the basis for which is not fully disclosed prior to the service being rendered, or which is so disproportionate to the service provided as to be unconscionable.

See also Regulation 991, Section 12:

1. Where a member proposes to charge a fee for a service in addition to retaining a portion of the premium charge, the member, before placing the insurance or providing a service for which a fee is to be charged, shall disclose to the person whom the member proposes to charge the amount of the fee, the portion of the premium retained and the total remuneration on the transaction.
2. Interest charges with respect to overdue accounts or accounts paid on an installment plan shall not be construed to be fees for services for the purposes of subsection (1). R.R.O. 1990, Reg. 991, s. 12.

REMINDER: FACILITY ASSSOCIATION

All brokers must be aware that service fees are not permitted on Facility business. The use of any fee or additional charge for servicing Facility risks is specifically prohibited by the terms of the Facility agreement and in the manual provided to brokers.

Further to our notice in the 2002 Fall Bulletin, we are pleased to advise brokers that this agreement now meets RIBO requirements.

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

James Robert Rivington
Registration Number: R09959
Kenora, Ontario

MISCONDUCT: Ont. Reg. 991, ss. 14(3),(4)

PARTICULARS OF THE COMPLAINT

• James Rivington failed to serve a number of his clients in a conscientious, diligent and efficient manner and failed to provide a quality of service at least equal to that which members would generally expect of a member in a like situation, and was not candid and honest when advising a number of his clients.
• Mr. Rivington allowed a policy to lapse and failed to advise the client that he was no longer covered.
• Mr. Rivington omitted a known driver from an automobile application in order to secure a lower premium for the insured.

DISCIPLINE COMMITTEE'S DISPOSITION (12/12/02)

• The Discipline Committee found that there was sufficient evidence in support of the plea of guilty entered by Mr. Rivington to the alleged misconduct.
• Mr. Rivington was reprimanded for his conduct in these matters.
• The Certificate of Registration of James Robert Rivington was suspended for a period of 30 days and was restricted to acting under supervision for a further period of 3 years.

If an insurance company's ombudsman liaison officer is unable to resolve a complaint, non-broker related general insurance complaints can now be referred to the General Insurance OmbudService. This new consumer assistance service was launched in November and is part of the Financial Services OmbudsNetwork. Complaints can be submitted online (gio-scad.org) or by calling 1-800-387-2880 (Ontario only) or (416) 362-9528 in Toronto.

ADDITIONS
3072	LOGISTIX INTERNATIONAL RISK MANAGEMENT INC.	TORONTO
DELETIONS
3	AAXEL INSURANCE BROKERS	ISLINGTON
2951	THE POWER GROUP INSURANCE BROKERS INC.	NEPEAN
1642	O'NEIL & COMPANY LIMITED	RENFREW
2970	BEST ADVICE INSURANCE SERVICES INC.	TORONTO
871	GULLIVER INSURANCE BROKERS LTD	LEAMINGTON
892	HALTON-CAIRD INSURANCE BROKERS LIMITED	OAKVILLE
102	PAUL AYOTTE INSURANCE BROKER LTD.	COCHRANE
1028	I.C. INSURANCE BROKERS LIMITED	BRAMPTON
1879	ROSE, HORNE & STEVENSON INS. BRKS INC. T/A THE R,H & S GRP.	ST. CATHARINES
1117	KEARD INSURANCE BROKERS LIMITED	TORONTO
1918	PHILIP SAM GENERAL INSURANCE BROKER (CANADA) INC.	WILLOWDALE
1157	THE HUB GROUP ONTARIO (2002) INC.	BRAMPTON
2528	PRO-FORM INSURANCE SERVICES INC.	MARKHAM
2536	PRO-TEC INSURANCE BROKERS INC.	TORONTO
1209	CAPITAL INSURANCE BROKERS LTD.	THUNDER BAY
2659	FAYE INSURANCE BROKERS (1994) LTD.	BARRIE
2202	UNIONVILLE INSURANCE BROKERS LIMITED	MARKHAM
2310	ALBERT WILLCOX & CO. OF CANADA LTD	TORONTO
796	GIFFORD ASSOCIATES INSURANCE BROKERS LTD.	NEPEAN

It appears that the Ontario government will not pass legislation before the Federal Personal Information Protection and Electronic Documents Act (PIPED Act) takes effect in January 1, 2004. Therefore, it is likely Ontario brokers will be governed by federal legislation.

All brokers should now be taking steps to ensure that compliance with federal legislation, including appointing a privacy officer, and developing written policy and procedures for the collection, use and disclosure of personal information.

Please refer to the federal and provincial Privacy Commissioner websites listed below for further guidance:

• "Your Privacy Responsibilities: A Guide to Businesses and Organizations" is available on the Privacy Commissioner of Canada's Website, www.privcom.gc.ca.
• "Privacy Diagnostic Tool (PDT) Workbook" is available on the Ontario Information and Privacy Commissioner's Website, www.ipc.on.ca.

The Financial Services Commission of Ontario Auditor brought to our attention that the 2001/2002 Hearing Summary in the Qualification & Registration Report was incorrect. Please find the correct numbers in the chart below:

HEARING SUMMARY

		01/02	00/01	99/00	98/99
Application for a Certificate of Registration	Granted refused	*3 1	0 0	1 0	1 1
Review of Qualification to hold a certificate	Granted refused	0 0	1 0	1 0	0 1
Application for Exemption Secondary Occupation	Granted refused	1 1	0 0	0 0	0 1
Application for Removal of Restriction	Granted refused	0 0	0 1	0 0	0 0
Other	Granted refused	0 0	0 0	1 0	0 0
Total		*6	2	3	4

Over the last year, the Committee received *seven requests for hearings, of which one is still pending. Requests are received after the committee has considered and proposed to refuse registration, exemption or has proposed to restrict, revoke or not renew an existing registration.

* Correct numbers

President	Past President
Arthur Langley Tel: (705) 474-2420 Demarco-Lucenti Insurance Brokers Limited 669 Cassells Street North Bay, Ontario P1B 4A1 Fax: (705) 474-9089 Email: d-linsurance@on.aibn.com	Joanne Brown Tel: (416) 394-4503 Marsh Canada Limited 70 University Ave., Suite 800 Toronto, Ontario M5J 2M4 Fax: (416) 815-3361 Email: Joanne.C.Brown@marsh.com
Vice President	Secretary
Rod Finlayson CG & B Group Inc. 120 South Town Centre Blvd. Markham, ON L6G 1C3 Tel: (905) 479-6670 Fax: (905) 479-9164 Email: finny@cgbgroup.com	Toots Everley Tel: (807) 727-3336 Canada Brokerlink (Ontario) Inc. 179 Howey Street, Box 39 Red Lake, Ontario P0V 2M0 Fax: (807) 727-3750 Email: twoee@nwconx.net, teverley@brokerlink.ca
Treasurer
Jack Baizana Tel: (613) 225-7722 Jack Baizana Insurance Brokers Ltd. 1390 Prince of Wales Dr. Ottawa, Ontario K2C 6N6 Fax: (613) 226-2781 Email: jack@baizanainsurance.com
Members
Caroline Anne Benedict PSA Insurance Services Limited 7699 Yonge Street Thornhill, Ontario L3T 1Z5 Tel: (905) 889-4933 Fax: (905) 889-0205 Email: cbenedict@psains.com	*James Chestnutt Tel: (905) 277-2990 4076 Deer Run Court Mississauga, Ontario L5C 3P2 Fax: (905) 277-0639 Email: jtchestnutt@hotmail.com
Barry Downs Tel: (416) 366-5243 Partners Indemnity Insurance Brokers Ltd. 10 Adelaide St. East, Suite 400 Toronto, Ontario M5C 1J3 Fax: (416) 862-2416 barry@partnersindemnity.com	*Al J. Hawco Tel: (613) 826-2804 3311 Warner Way Osgoode, Ontario K0A 2W0
*Hassan A. Jaffer Tel: (416) 283-7468 70 Baronial Court West Hill, Ontario M1C 3J7 Fax: (416) 724-8001 Email: hassan@nvcallp.com	Byron Moffitt Erb and Erb Insurance Brokers Ltd. 30 Queen St., P.O. Box 2670 Kitchener, Ontario N2H 6N2 Tel: (519) 579-4270 Fax: (519) 745-5607 Email: byron@erb-erb.com
*Gloria Shan Tel: (416) 923-9222 449 Walmer Rd., Apt. 705 Toronto, Ontatio M5P 2X9 Fax: (705) 474-9089	Bonnie Warder Davis & McLay Insurance Brokers Limited Box 12, R.R. #1 2845 HWY #6 Lion's Head, Ontario NOH 1WO Tel: (519)793-3322 Fax: (519)793-3901 Email: emclay@amtelecom.net

*Public members are appointed by the Lieutenant Governor-in-Council to represent the public interest.

RIBO Office: (416) 365-1900 or 1-800-265-3097 Fax: (416) 365-7664
P.O. Box 45, 401 Bay Street, Suite 1200, Simpson Tower, Toronto, ON M5H 2Y4

Receptionist - Madeline Ross
General Manager - Jeff Bear (jeff@ribo.com)
Secretary - Lise Clements (lise@ribo.com)

ADMINISTRATION & FINANCE
Manager - George Martin (george@ribo.com)
Accounting & Data Supervisor
Registration/Data Entry - Irene Chung (irene@ribo.com), Erica Lo (erica@ribo.com), Karla Poirier (karla@ribo.com), Valrie Bailey (valrie@ribo.com)

COMPLAINTS & INVESTIGATIONS
Manager - Tim Goff (tim@ribo.com)
Complaints Officer - Sharon Bentley (sharon@ribo.com)
Senior Investigators - Nadine Austin (nadine@ribo.com), Crystal Skyvington (crystal@ribo.com)
Secretary - Angela Daley (angela@ribo.com)
Co-ordinator - Diana Campoli (diana@ribo.com)
Financial Investigators - Michael Buck (michael@ribo.com),
Filomena Scampoli (filomena@ribo.com)

CORPORATION LEGAL SERVICES
In-house Legal Counsel - Bradley Nairn (bradley@ribo.com)
Secretary - Angela Daley (angela@ribo.com)

MARKETING & COMMUNICATIONS
Communications Co-ordinator - Susan MacKenzie (susan@ribo.com)

QUALIFICATION & REGISTRATION
Manager - Lilian Croucher (lilian@ribo.com)
Assistant - Vivian Lee (vivian@ribo.com)
Secretary - Sonia Lyew Garcia (sonia@ribo.com)
Clerk - Laurie Reynolds (laurie@ribo.com)