LLQP BULLETIN
To All Insurance Companies and Representatives Licensed to Sell Life Insurance
August 2002
New Life Licence Qualification Program
In May 1998, a committee of insurance regulators was established to review and update the licensing standards for life insurance agents to reflect the skills necessary to do business in today's marketplace. The new standards which have been developed through this process is a comprehensive, single-level life agent educational program known as the Life Licence Qualification Program or LLQP. The LLQP consists of a mandatory education course and a new qualification examination (multiple choice) based on the course.
The LLQP course will be provided commercially and course fees will be set by the course providers. The LLQP examination will be made available for people successfully completing the LLQP course.
The LLQP will become mandatory for new entrants to the life insurance industry in Manitoba on January 1, 2003. As of that date, subject to the approval of new Regulations, we will only be issuing a single level licence, that being a Life Insurance Agent Licence. We will continue to issue licenses in accordance with our current two level licence system up to and including December 31, 2002.
As part of the consultation process with the life insurance industry, it was agreed that a four year transition period would be provided. During this period, it will be possible to take a portion of the LLQP course and write a restricted LLQP examination (the "Restricted LLQP"). This will qualify an individual for a "restricted" Life Insurance Agent Licence.
Effect on Level II Licenses
Level II - The LLQP will not have any effect on licensees who hold a Life Insurance Agent Level II Licence on December 31, 2002. These licensees will be granted the new unrestricted licence.
Course Providers
Effective June 1, 2002, the LLQP course became available in Manitoba as an "optional equivalency" from two course providers. They are:
Canadian Association of Insurance and Financial Advisors
Donna Muirhead
350 Bloor Street East
Toronto, ON M4W 3W8
Tel: (416) 444-5251, Ext *251
Web: www.caifa.com
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Canadian Securities Institute
Customer Services Representative
121 King Street West, Suite 1550
Toronto, ON M5H 3T9
Toll Free: (866) 866-2601
Tel: (416) 364-9130
Fax: (416) 359-0486
Web: www.csi.ca
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Both providers are making their course available through a distance learning format. Details about the respective courses can be obtained by contacting the organizations directly.
Transition from Old System to New System
Licensees who hold a Life Insurance Agent Level 1 Licence on December 31, 2002, will have to further their education prior to the later of January 1, 2003 and the three year anniversary date of the effective date of their initial licence by either completing the IFATC program or successful completion of the Level 2 qualification exam which are offered by CAIFA or by completing the full LLQP. Completion of the Restricted LLQP is not an option.
Licensees who do not further their education prior to the later of January 1, 2003 and the three year anniversary date of the effective date of their initial licence will not be permitted to conduct any further life insurance activity. Should you, at some future date, wish to obtain a licence, you will be subject to the successful completion of the Life Licence Qualification Program (LLQP).
New Entrants - June 1, 2002 to December 31, 2002
New entrants to the life insurance industry during this period can qualify for a Life Insurance Agent Level 1 Licence under existing legislation by using the existing educational criteria (successful completion of the Level 1 Life Insurance Examination and/or Accident & Sickness Insurance Agent Examination) or by completing the LLQP or the Restricted LLQP.
Licensees which qualified under the existing educational criteria will be subject to the transitional provisions in the above section.
New Entrants After December 31, 2002
After December 31, 2002, individuals may qualify for an unrestricted Life Insurance Agent Licence by completing the LLQP. Individuals may qualify for a restricted licence by completing the Restricted LLQP.
Individuals who decide to complete the Restricted LLQP will qualify for a restricted licence on the following conditions:
- The licensee must enrol in the Residual Portion of the LLQP course within 180 days of being licensed;
- The licensee must complete the Residual Portion of the LLQP course and pass the LLQP exam within two years of being granted a licence or before the four year transition period expires, whichever is the shortest period;
- An application and needs analysis (all sales must now be supported by a needs analysis) must be co-signed by a licensee who has (i) completed the full LLQP program or who previously held a Level 2 Licence; and (ii) has two years experience;
In addition, the sponsoring insurance company and other companies accepting business from a licensee with a restricted licence must provide an undertaking when they sponsor or contract with the licensee that they will maintain records and a system to ensure the above requirements and restrictions are met.
This option will be available to anyone considering becoming a life insurance representative and the decision to select this option is at the sole discretion of each applicant.
LLQP and Accident & Sickness Insurance Licensing
The LLQP includes updated standards to reflect the skills necessary to do accident and sickness insurance business in today's marketplace. The LLQP pre-training course components dealing with accident and sickness insurance and the LLQP examination to test that material will become mandatory for new applicants for an accident and sickness only licence on January 1, 2003.
We will begin accepting the LLQP course and completion of the LLQP examination relating to accident and sickness as an equivalency to our existing standards on June 1, 2002.
Licensees who hold an Accident and Sickness Insurance Agent Licence on December 31, 2002 and have received that licence by passing the current Accident and Sickness Insurance Agent Examination will not be required to complete the new education requirement.
Re-entry to the Life Insurance Field after December 31, 2002
A person who applies for a licence within one year following expiration of a licence previously held will be eligible for the licence previously held.
A person who applies for a licence more than one year after expiration of a licence previously held will be required to complete the new LLQP licensing requirements. For individuals who hold a CLU, and have kept their designation in good standing, the time frame will be extended to three years.