Canadian Universal Insurance Company

A Canadian company can operate in the Canadian insurance market, but that does not happen automatically. It is necessary to obtain a license from the government and meet certain other requirements. To get a license from the Government of Canada, you need to become an authorized seller or insurer. There are 3 different categories of authorized sellers and insurers:

• A Non-Life Company (e.g., an auto insurance company operating in Canada) & their salespeople are called independent agents;
• A Life Company (e.g., an auto insurance company operating in Canada) & their sales people are called agents;
• An Accident Company (e.g., an auto insurance company operating in Canada) & their salespeople are called brokers or agents. You must be aware that there are restrictions on what kinds of companies you can be if you want to operate as an insured or reseller in Canada’s Insurance Market.

In this article, we will discuss SOME of those restrictions and outline how they apply to a Canadian company that wants to operate as an Insurance Marketplace Reseller.

 

Reseller Requirements

If you are interested in becoming a Canadian resale company, then you need to get a license from the Government of Canada. Resellers must be incorporated as a Canadian company and registered as a reseller with the Insurance Regulatory Examination Council (“the Council”).

The company must be authorized to resell in the province/territory where it is registered. Resellers must be licensed and registered in each province/territory in which they are authorized to resell.

As of May 2017, the government of Canada has started to enforce and enforce more stringent requirements to become an authorized reseller. The council is actively enforcing the following requirements:

• The company must be legally incorporated.
• The company must be registered to do business under the company’s business name.
• The company must have a corporate identity card.
• The company must have a business address and a business telephone number.
• The company must have a registered agent.
• The company must have a financial condition exam.
• The company must have a chief compliance officer.

Wholesaler Requirements

If you are interested in becoming a Canadian wholesale company, then you need to get a license from the Government of Canada. Wholesalers must be incorporated as a Canadian company and registered as a wholesale with the Council.

The company must be authorized to engage in wholesale insurance activities in the province/territory where it is registered. Wholesalers must be licensed and registered in each province/territory in which they are authorized to engage in wholesale insurance activities.

As of May 2017, the government of Canada has started to enforce and enforce more stringent requirements to become a wholesale company. The Council is actively enforcing the following requirements:

• The company must be legally incorporated.
• The company must have a corporate identity card.
• The company must have a business address and a business telephone number.
• The company must have a registered agent.
• The company must have a financial condition exam.
• The company must have a chief compliance officer.

What types of companies can sell insurance in Canada?

The following are some of the types of companies that can operate in the Canadian insurance market: An auto insurance company An accident auto insurance company An property insurance company An liability insurance company An health insurance company An marine insurance company A farm auto insurance company A combination of the above

How to get a Canadian license to sell insurance

First and foremost, you need to determine whether you have a good chance of succeeding in the Canadian marketplace. To do this, you will want to consider the following factors: –

• The type of insurance you are trying to sell.
• The market in which you are operating.
• The degree of competition in your market.
• The overall strength of the Canadian insurance market.
• The rate of change in your market.
• Other factors that could impact the success of your company.
• The first thing you will want to do is to contact the insurance commissioner of your province/territory to find out if you are allowed to operate in that province/territory.

You will also want to find out if you are authorized to sell in the type of insurance products you are interested in. You will need to get a license from each insurance commissioner. You will also need to comply with the RESTRICTED ACTIONS ACT.

Authorized Selling Company Requirements

Your company must have a minimum net worth of $100,000. Your company must have a minimum of 5 shareholders. Your directors must have a minimum of 3 years of experience in the insurance business.

Non-Authorized Selling Company Requirements

Your company must have been in operation for at least 2 years. Your company must have a minimum of 5 shareholders. Your directors must have a minimum of 10 years of experience in the insurance business. Your company must be incorporated in Canada.

How to become an authorized seller in Canada

To become an authorized seller, you will need to meet the following requirements:

• Obtain a business license from the government of your province/territory.
• Apply to become an authorized seller with the Council.
• File an application for authority with the Council.
• Pay a $5 application fee.
• Pass a written examination.

How to become an authorized insurer in Canada

To become an authorized insurer, you will need to meet the following requirements:

• Obtain a life insurance license from the government of your province/territory.
• File an application for authority with the Council.
• Pay a $500 application fee.
• Pass a written examination.

Licensing Restrictions for Canadian Companies

A Canadian insurance company can only resell or underwrite a maximum of $1,000,000 worth of business in any 12-month period.

 

CANADIAN UNIVERSAL INSURANCE COMPANY, LIMITED

Sources.

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