To be eligible, an individual must be personally registered as an insurance broker and hold an “Unrestricted” class of license (successful completion of both the “Unrestricted – Technical” and “Unrestricted – Management” examinations). 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, Regulations, By-laws 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.
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.