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Professional Liability Insurance - IMPORTANT NOTICE

Amendments to the Insurance Agents & Adjusters Regulation were passed into law April 11, 2001, making these minimum requirements mandatory for residents and non-residents.

Pursuant to Section 371(1.1) of The Insurance Act of Manitoba and Section 12 of the Agents & Adjusters Regulation, amendment, you are required to carry a minimum of $1,000,000 in respect of any one occurrence with an overall policy aggregate of at least $5,000,000.

The policy must contain components as; coverage amounts that are exclusive of defense and investigative expenses; coverage that covers all of the insurance products that the insured is licensed to sell and will include coverage for the insured’s supervisory activities (if applicable), for financial planning services provided by the insured (if applicable), and for any unlicensed employee or administrative assistant for whose acts the insured is responsible. The coverage shall include extended reporting for a period of five (5) years, and will provide cover for errors and omissions that were made before the inception of the insurance, provided that the errors and omissions were made after June 1, 2001, and that the insured had no knowledge of the claim. The errors and omissions policy must not be restricted to a particular insurers’ product. An endorsement to include fraud and dishonest acts must also be included as a mandatory requirement of errors and omissions insurance.

You will be required to provide proof satisfactory to the Insurance Council of the existence of this policy when you are renewing your licence. The agents licence applications, including renewal applications, shall also require that the agents attest to having errors and omissions insurance in force, which is in compliance with this section, and that he or she shall immediately cease acting as an agent if such insurance ceases to be in force.

Pursuant to Section 372.1(1) of The Insurance Act of Manitoba, no licensed insurance agent shall carry on the activities of an insurance agent while he or she is not insured under a policy of liability insurance that meets the requirements of subsection 371(1.1).

In addition, Section 372.1(2) of The Insurance Act of Manitoba states, a licensed insurance agent whose liability insurance lapses, or is cancelled by the agent or the insurer, shall notify the Insurance Council of Manitoba without delay.

Telephone: (204) 988-6800
Facsimile: (204) 988-6801