Acts and Regulations

95-5 - Agents and Brokers

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Full text
Current to 1 January 2024
NEW BRUNSWICK
REGULATION 95-5
under the
Insurance Act
(O.C. 95-25)
Filed January 26, 1995
Under section 352 of the Insurance Act, the Lieutenant-Governor in Council makes the following Regulation:
1This Regulation may be cited as the Agents and Brokers Regulation - Insurance Act.
2In this Regulation
“Act” means the Insurance Act;(Loi)
“agent’s licence” means a licence issued to an insurance agent under subsection 352(2) of the Act;(licence d’agent)
“broker’s licence” means a licence issued to an insurance broker under subsection 352(2) of the Act.(licence de courtier)
3This Regulation applies to residents of the Province who, within the meaning of subsection 352(2) of the Act, carry on the business of insurance agents or insurance brokers for any class of insurance other than life insurance.
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4The following kinds of licences may be issued:
(a) an agent’s licence, class I, to a person who is employed by a licensed insurer as a customer service representative whose primary duty is to accept applications for insurance and renewals of insurance at the person’s place of employment;
(b) an agent’s licence, class II, to a person who is employed by or is under a contract for the exclusive representation of one licensed insurer and who is qualified to underwrite all classes of insurance other than life insurance, for that licensed insurer;
(c) a broker’s licence, class I, to a person who is employed by a holder of a broker’s licence, class IV, as a customer service representative whose primary duty is to accept applications for insurance and renewals of insurance at the person’s place of employment;
(d) a broker’s licence, class II, to a person who is employed by a holder of a broker’s licence, class IV, and who is training for a broker’s licence, class III;
(e) a broker’s licence, class III, to a person who is employed by a holder of a broker’s licence, class IV, and who is qualified to underwrite all classes of insurance other than life insurance, for more than one licensed insurer; and
(f) a broker’s licence, class IV, to a person who is a proprietor or manager of an insurance brokerage business.
5A person who is applying for an agent’s licence or a broker’s licence shall submit an application to the Superintendent on a form provided by the Superintendent.
6(1)A person who is applying for an agent’s licence, class I, shall meet one of the following requirements and qualifications:
(a) successfully complete and attain a mark of at least seventy-five per cent on the Fundamentals of Insurance Examination that is offered by the Superintendent;
(b) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C11 – “Principles and Practice of Insurance”; and
(ii) course C130 – “Essential Skills for the Insurance Broker or Agent”;
(b.1) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C81 – “General Insurance Essentials – Part 1”; and
(ii) course C82 – “General Insurance Essentials – Part 2”; or
(c) successfully complete the course CAIB I of the Canadian Accredited Insurance Brokers Program that is offered by the Insurance Brokers Association of Canada.
6(2)A holder of an agent’s licence, class I, shall
(a) be employed by a licensed insurer,
(b) be under the supervision of his or her employer, and
(c) conduct all duties relating to the licence at  the place of business of his or her employer.
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7(1)A person who is applying for an agent’s licence, class II,  shall meet one of the following requirements and qualifications:
(a) successfully complete and attain a mark of at least seventy-five per cent on the Fundamentals of Insurance Examination that is offered by the Superintendent;
(b) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C11 – “Principles and Practice of Insurance”; and
(ii) course C130 – “Essential Skills for the Insurance Broker or Agent”;
(b.1) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C81 – “General Insurance Essentials – Part 1”; and
(ii) course C82 – “General Insurance Essentials – Part 2”; or
(c) successfully complete the course CAIB I of the Canadian Accredited Insurance Brokers Program that is offered by the Insurance Brokers Association of Canada.
7(2)A holder of an agent’s licence, class II, shall be employed by, or shall be under a contract for the exclusive representation of, a licensed insurer.
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8(1)A person who is applying for a broker’s licence, class I, shall meet one of the following requirements and qualifications:
(a) successfully complete and attain a mark of at least seventy-five per cent on the Fundamentals of Insurance Examination that is offered by the Superintendent;
(b) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C11 – “Principles and Practice of Insurance”; and
(ii) course C130 – “Essential Skills for the Insurance Broker or Agent”;
(b.1) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(i) course C81 – “General Insurance Essentials – Part 1”; and
(ii) course C82 – “General Insurance Essentials – Part 2”; or
(c) successfully complete the course CAIB I of the Canadian Accredited Insurance Brokers Program that is offered by the Insurance Brokers Association of Canada.
8(2)A holder of a broker’s licence, class I, shall
(a) be employed by a holder of a broker’s licence, class IV,
(b) be under the supervision of his or her employer, and
(c) conduct all duties relating to the licence at the place of business of his or her employer.
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9(1)A person who is applying for a broker’s licence, class II, shall meet the requirements and qualifications referred to in paragraph 8(1)(a), (b), (b.1) or (c) for a broker’s licence, class I.
9(2)A holder of a broker’s licence, class II, shall
(a) be employed by a holder of a broker’s licence, class IV, and
(b) be under the supervision of a holder of a broker’s licence, class III or class IV.
9(3)A holder of a broker’s licence, class II, shall obtain a broker’s licence, class III, within three years after obtaining a broker’s licence, class II.
9(4)If a holder of a broker’s licence, class II, does not obtain a broker’s licence, class III, within three years after obtaining a broker’s licence, class II, the Superintendent shall not renew the person’s broker’s licence, class II.
9(5)If the Superintendent does not renew a licence on the grounds set out in subsection (4), the person whose licence is not renewed shall not apply for another broker’s licence, class II, for at least one year after the expiration of the person’s previous broker’s licence, class II.
9(6)Subsections (3) and (4) apply to a person referred to in subsection (5) who, after the expiration of the time specified in that subsection, applies for and is issued another broker’s licence, class II.
9(7)Notwithstanding subsection (6), a person referred to in subsection (6) who does not obtain a broker’s licence, class III, within three years after obtaining another broker’s licence, class II, as provided in subsection (6), shall not apply again for a broker’s licence, class II.
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10(1)A person who is applying for a broker’s licence, class III, shall meet
(a) the requirements and qualifications referred to in paragraph 8(1)(a), (b), (b.1) or (c) for a broker’s licence, class I; and
(b) one of the following requirements and qualifications:
(i) successfully complete the following courses that are offered by the Insurance Institute of Canada:
(A) course C130 – “Essential Skills for the Insurance Broker or Agent”; and
(B) course C131 – “Advanced Skills for the Insurance Broker and Agent”;
(ii) successfully complete the courses CAIB II and CAIB III of the Canadian Accredited Insurance Broker Program that are offered by the Insurance Brokers Association of Canada; or
(iii) attain the designation “Associate of the  Insurance Institute of Canada” or “Fellow of the Insurance Institute of Canada” or, from the Insurance Brokers Association of Canada, the designation “Canadian Accredited Insurance Broker” or “Chartered Insurance Broker”.
10(2)A holder of a broker’s licence, class III, shall be employed by a holder of a broker’s licence, class IV.
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11(1)A person who is applying for a broker’s licence, class IV, shall meet
(a) the requirements and qualifications referred to in paragraph 8(1)(a), (b), (b.1) or (c) for a broker’s licence, class I;
(b) the requirements and qualifications referred to in subparagraph 10(1)(b)(i), (ii) or (iii) for a broker’s licence, class III; and
(c) one of the following requirements and qualifications:
(i) successfully complete course C132 – “Practical Issues in Broker Management” that is offered by the Insurance Institute of Canada;
(ii) successfully complete the course CAIB IV  of the Canadian Accredited Insurance Broker Program that is offered by the Insurance Brokers Association of Canada; or
(iii) attain the designation “Associate of the  Insurance Institute of Canada” or “Fellow of the Insurance Institute of Canada” or, from the Insurance Brokers Association of Canada, the designation “Canadian Accredited Insurance Broker” or “Chartered Insurance Broker”.
11(2)A person who is applying for a broker’s licence, class IV, shall be employed as the holder of a broker’s licence, class III, for at least two years before applying for the licence.
11(3)Notwithstanding subsections (1) and (2), a person who does not meet the qualifications and requirements referred to in those subsections may apply for a broker’s licence, class IV, if the person
(a) has carried on the business of insurance for at least ten consecutive years immediately before the commencement of this Regulation, and
(b) has, in the opinion of the Superintendent, the necessary experience in all aspects of the business of insurance to carry out the duties and responsibilities of a holder of a broker’s licence, class IV, and to operate an insurance brokerage business.
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12(1)On the commencement of this Regulation, a person who holds a licence issued under subsection 352(2) of the Act shall be deemed to have been issued a licence of a kind determined in accordance with the following:
(a) an agent’s licence, class I, to a person who is employed by a licensed insurer as a customer service representative whose primary duty is to accept applications for insurance and renewals of insurance at the person’s place of employment;
(b) an agent’s licence, class II, to a person who is employed by or is under a contract for the exclusive representation of one licensed insurer and who is qualified to underwrite all classes of insurance other than life insurance, for that licensed insurer;
(c) a broker’s licence, class I, to a person who is employed by a holder of a broker’s licence, class IV, as a customer service representative whose primary duty is to accept applications for insurance and renewals of insurance at the person’s place of employment;
(d) a broker’s licence, class II, to a person who is employed by a holder of a broker’s licence, class IV and who is training for a broker’s licence, class III;
(e) a broker’s licence, class III, to a person who is employed by a holder of a broker’s licence, class IV, and who is qualified to underwrite all classes of insurance other than life insurance, for more than one licensed insurer; and
(f) a broker’s licence, class IV, to a person who is a proprietor or manager of an insurance brokerage business.
12(2)On the commencement of this Regulation, the Superintendent shall notify each person referred to in subsection (1) of the kind of licence deemed to have been issued to that person.
12(3)A person to whom a licence is deemed to have been issued is exempt from subsection 6(1), 7(1), 8(1), 9(1), 10(1) or 11(1), as the case may be,
(a) unless the person ceases for more than one year to hold the licence deemed to have been issued in accordance with subsection (1) and subsequently applies again for that kind of licence, or
(b) unless the person applies for a licence of a kind other than that deemed to have been issued to the person in accordance with subsection (1).
13This Regulation comes into force on February 1, 1995.
N.B. This Regulation is consolidated to August 22, 2018.