Getting a LicenceProfessional Corporations (Non-Active Firms)

Professional Corporations (Non-Active Firms)

A non-active member firm registration is required for any business (sole proprietorship, partnership, or corporation) established for one or more of the following purposes:

  • Clusters affiliated with an Active Firm Licensee doing the trading and holding the insurer contracts;
  • Corporate partnerships where two or more corporations join to form a partnership; or
  • Personal service businesses whereby the majority of the issued and outstanding shares of the corporation shall be legally and beneficially owned by one or more individual Licensee(s) or Active Firm Licensee(s).

To qualify, the firm name must not be publicly identifiable. If the firm name appears on signage, letterhead, business cards, or any other materials that suggest the firm is engaged in general insurance transactions, full registration is required. In this case, the firm must comply with all active member regulations and submit the full registration fee.

Additionally, the majority of equity and voting interests in a partnership must be held by licensed general insurance intermediaries. Non-active member firms must also maintain an attended mailing address in Ontario, regardless of their principal place of business.

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

  • Completed and signed Application for Business Registration – Non-Active
  • Business identity verification:
    • Sole proprietorship: Copy of trading name registration
    • Partnership: Copy of partnership registration under the Partnership Registration Act
    • Corporation: Copy of Articles of Incorporation
  • Certificate of Professional Errors and Omissions Liability insurance with coverage of at least $3 million per claim and $6 million aggregate, adding the non-active firm to the policy under which the individual is registered. The policy must be issued by insurers licensed in Ontario and include special RIBO endorsements. The broker is responsible for maintaining coverage and providing annual renewal certificates to RIBO. A Non-Active Firm may be added to the Errors & Omissions policy of the Active Firm Licensee under whom the Individual Owner is employed or personally registered.
  • Applicable registration fee.

When an individual with a registered non-active firm changes brokerages, the non-active member firm registration must be transferred to the new brokerage.

To complete the transfer, the following documents are required:

  1. A fully completed and signed Non-Active Member Undertaking.
  2. A certificate of Professional Errors and Omissions Liability Insurance, with coverage of at least $3 million per claim and $6 million aggregate, adding the non-active member firm to the policy under which the individual is registered. The policy must be underwritten by insurers licensed in Ontario and include special RIBO endorsements. A Non-Active Firm may be added to the Errors & Omissions policy of the Active Firm Licensee under whom the Individual Owner is employed or personally registered.

The broker is responsible for maintaining the required insurance coverage and providing RIBO with annual renewal or continuation certificates.

Do you have questions?

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