Alberta to introduce a new training license for brokers
New license would allow brokers to operate without a Level I license for 90 days
The Alberta Insurance Council (AIC) has recommended changes to the Insurance Agents and Adjusters Regulation, which would allow prospective brokers to work for up to 90 days without a Level I license.
If brought into effect, the training license could only be used once and the prospective brokers would have to be supervised by a Level II broker throughout the training period.
“The level of supervision is going to be left up to the designated firm or the insurers that employ them,” Tom Hampton, chief operating officer of AIC told Canadian Insurance Top Broker.
Hampton expects the government will consider the changes to the regulation within the next week.
The Alberta Treasury Board and Finance along with the AIC, the provincial brokers’ association and the direct writers all proposed the regulatory changes after a member of the industry complained about the process of hiring new brokers.
“[He] was struggling with the concept of trying to hire new people and going through the process of getting a potential candidate licensed and ready to go to work only to find out that they have no aptitude for the position,” said Hampton.
The AIC and other stakeholders all agreed that a probationary license would be the most appropriate means to deal with the problem.
They also proposed eliminating the requirement that brokers must advance from Level I to Level II after three years.
“In a lot of cases the folks who were holding these Level I licenses, at the end of taking this Level II requirement, were still doing exactly the same things they were doing as a Level I. So they never got into the commercial style of coverage and the fleet trucks, environmental coverages. They still dealt primarily with homeowners’ policies and auto policies.
“It just seemed like it wasn’t serving [a] purpose to bring somebody on, get them knowledgeable for three years and then because they weren’t successful in an examination, kick them out of the business completely and start with another new person,” said Hampton.
In addition to these requested changes, it was recommended that the person responsible for a brokerage should also have to pass a management exam to insure that they can handle the fiduciary responsibilities of running a company.