Insurance Council of Manitoba recommends restricted license as way to regulate incidental sales of insurance

The Insurance Council of Manitoba is recommending to the Government of Manitoba that the incidental sale of insurance be regulated by way of a restricted insurance agent license.The approach is similar to that taken in Alberta and Saskatchewan.Under the council’s proposed regulatory framework, organizations eligible for a restricted licence to sell insurance products include, among others: •deposit-taking institutions; •financial corporations; •mortgage brokers; •operators of travel agencies, auto or marine dealerships, customs brokerages and freight forwarding businesses; •transportation companies; •funeral services businesses; •real estate agencies; and •car or truck rental agencies.The classes or types of insurance to which a restricted insurance agent licence applies include:•cargo type insurance;•creditor’s disability insurance;•creditor’s life insurance;•creditor’s loss of employment insurance;•creditor’s vehicle inventory insurance;•equipment insurance;•export credit insurance;•mortgage insurance;•personal life insurance; and •travel insurance.A person applying for a restricted licence must provide a written recommendation from an insurer recommending the issuance of the restricted licence, proof of a valid errors and omissions insurance policy and have reasonable and demonstrable policies and procedures in place, among other things.The full proposed regulatory framework can be found at: http://www.icm.mb.ca/files/Consultations/ISIFramework_Final.pdf