Restricted Insurance Agents – Incidental Sale of Insurance
- Please refer to the User Guides when wishing to apply for a licence - this applies to all amendments, reinstatements, new applicants, late renewals (classified as a reinstatement), or those wishing to apply for a supplementary licence (additional licence).
Refer to 389/87
| Eligible Business | Applicable for | May Apply for |
|---|---|---|
| Deposit Taking Institution | Credit Related Insurance |
|
| Sales Finance Company | Credit Related Insurance |
|
| Transportation Service | Travel Related |
|
| Travel Agency | Travel Related |
|
| Automobile / Equipment Dealership | Credit Related Insurance |
|
| Mortgage Broker | Credit Related Insurance |
|
| Customs Broker | Cargo Insurance |
|
| Freight Forwarding Business | Cargo Insurance |
|
| Vehicle Rental Business | Rented Vehicle Insurance |
|
| Funeral Director | Funeral Expense Insurance |
|
| Portable Electronics Vendor | Portable Electronics Insurance |
|
Updated June 26, 2018
Restricted Insurance Agents (RIA) are responsible to notify the Insurance Council of Manitoba (ICM) of any material change within 15 days of such change. ICM considers a material change to include any material fact which may influence Council to amend, or review a licensee’s licence(s). Listed below are examples of common material changes that may affect one’s licensing status. This is not an exhaustive list – when in doubt, please contact the ICM for clarification.
- Change in Designated Official name
- Change to Business Address
- Change to Contact Information (telephone or email)
- Change to Agency Name
- Change of Sponsoring Insurance Company
- Change to Person or Entity holding the RIA licence
- Change to Class(es) or Type(s) of insurance
- Change to Number of Employees
- Lapse of E&O insurance for the entity
- Disciplinary action from another regulator
Refer to the below chart to determine what is required when reporting a material change to the ICM:
| Material Change | Fee Required | Documents Required |
|---|---|---|
| Change in Designated Official name | N/A | fully completed application with sponsorship |
| Change to Business Address | N/A | the Designated Official must update the address within the online portal under the “Information” tab |
| Change to Contact Information (telephone or email) | N/A | the Designated Official must update the contact information within the online portal under the “Information” tab |
| Change to Agency Name | $70.00 amendment fee per Regulation 73/93 | fully completed application with sponsorship |
| Change of Sponsoring Insurance Company | $70.00 amendment fee per Regulation 73/93 | fully completed application with sponsorship |
| Change to Person or Entity holding the RIA licence | $70.00 amendment fee per Regulation 73/93 | fully completed application with sponsorship |
| Change to Class(es) or Type(s) of insurance | $70.00 amendment fee per Regulation 73/93 | fully completed application with sponsorship |
| Change to Number of Employees (outside of the authorized persons as per the fee schedule) | $70.00 amendment fee per Regulation 73/93 | fully completed application(s) with sponsorship |
| Lapse of E&O insurance for the entity | $70.00 reinstatement fee per Regulation 73/93 as license would be disqualified | fully completed application with sponsorship |
| Disciplinary action from another regulator | N/A | full documentation should be provided to the ICM along with a copy of the action, agreed statement of facts, administrative penalty, etc. from the other regulator |
Important Note: The above changes cannot be done during the annual online licence renewal. Any amendments to the licence must be made in advance of renewal as outlined above.
Individuals who qualify are former licensees who last held a licence within the past 12 months. Former licensees who held a licence over 12 months ago would not qualify for a reinstatement, and would be considered “NEW” applicants.
There are two (2) types of reinstatements:
- Reinstatement for a former licensee who last held a Manitoba licence within the same insurance class within this licence year but the licence has since been cancelled.
OR - Reinstatement and Renewal for a former licensee who last held a Manitoba licence within the same insurance class in the prior licence year but within the past 12 months.
Steps to apply for a reinstatement include the following:
- Full completion of the online “reinstatement” application form – login to the Online Portal, and follow the steps in the User Guide – to Reinstate a Licence for assistance.
- The reinstatement fee of $70.00 must be paid within the online application by credit card (VISA or MASTERCARD only).
- All other items as outlined within the quick checklist in the User Guide – to Reinstate a Licence. Please note that criminal record checks are NOT required for reinstatement purposes unless the former licensee’s criminal history has changed (not applicable to Restricted Insurance Agents).
- Additional items required for “Reinstatement and Renewal” (those who failed to renew by May 31 – within 12 months):
- The annual licence fee (fees are outlined within the fee schedule) – only required when reinstating and renewing the licence, and must be paid within the online application by credit card (VISA or MASTERCARD only); and
- Entry of the annual Continuing Education (CE) hours in the online portal (not applicable to Hail agents, Restricted Insurance Agents or non-residents residing in a Canadian jurisdiction that has CE requirements in the agent’s home jurisdiction). Refer to the information in the User Guide – Instructions to enter your continuing education credits to assist you with entering these credit hours.
Important Note: Applications submitted to the ICM office that are missing items are considered incomplete and will be returned to the applicant for completion, thus delaying the potential issuing of a licence.
The responsibilities for a Designated Official for RIA entities is outlined in Section 30 of Regulation 389/87 R.
As the Designated Official for the RIA entity, your responsibilities include that you must:
- have reasonable and demonstrable policies and procedures to ensure that anyone who solicits, negotiates or transacts insurance is knowledgeable, competent and suitable taking into account the class or type of insurance;
- ensure that anyone who solicits, negotiates or transacts insurance complies with the policies and procedures mentioned above;
- ensure that the person applying, when receiving an application for insurance, is:
- informed that they are contracting with the insurer and not with the RIA;
- provided with a summary of the terms of the insurance and circumstances under which it commences or terminates, and how to make a claim;
- notified that upon approval of the application, a copy of the insurance coverage will be sent to the person;
- ensure that within 20 business days after a person’s insurance coverage comes into force, the person is provided with documentation evidencing the insurance coverage;
- ensure that, if the RIA licence holder or a qualified entity acting for it receives direct or indirect compensation, or a direct or indirect inducement or benefit, from the insurer for soliciting, negotiating or transacting the insurance, that fact is disclosed to any person considering obtaining the insurance;
- ensure that they follow the provisions outlined in The Insurance Act of Manitoba and the Regulations; and
- ensure that a qualified entity that acts on behalf of an RIA abides by the information outlined in Section 31 of Regulation 389/87 R.
In addition to the above, the RIA’s Designated Official (DO) must:
- without delay, notify the ICM in writing of any change in DO, and provide the ICM with a replacement DO;
- without delay, notify the ICM in writing if the DO is unable to discharge the responsibilities expected of the DO, and provide the ICM with a replacement DO;
- supervise any individual offering (selling) insurance products under the RIA licence;
- ensure compliance with The Insurance Act of Manitoba and its Regulations;
- ensure that errors and omissions (E&O) insurance is maintained for the full duration of the licence in accordance with the Regulations, and that this information be maintained and updated in the online portal;
- report any material change to the ICM within 15 days (Council considers a material change to include any material fact which may influence Council to amend, or review a licensee’s licence(s). Refer to the Material Changes – When to Disclose them to the ICM link on the ICM website); and
- ensure that the RIA licence holder or a qualified entity acting for it, does not represent or hold themselves out to the public in any other name than is stated on the licence, or during any unlicensed period.
Things that an RIA licence holder must NOT do are listed under Section 30(2) of Regulation 389/87 R. The requirements include: that an RIA must not make the provision/sale of the goods or services conditional on the consumer’s purchase of insurance; must not allow anyone to sell on behalf of the RIA unless that person has been adequately trained; and must not permit an employee to tell a consumer that the consumer is required to purchase insurance, or is required to purchase insurance only through them.
Failure to abide by any of the ICM’s requirements may result in the cancellation of the RIA licence and/or disciplinary action of the RIA. Disciplinary actions may include fines or a review of the suitability of the RIA to hold a licence.