Financial Institutions Act

INSURANCE LICENSING EXEMPTIONS REGULATION

[includes amendments up to B.C. Reg. 571/2004, December 31, 2004]

Interpretation

1 (1) In this regulation:

"Act" means the Financial Institutions Act;

"automobile" has the same meaning as in the Insurance Act;

"credit insurance" means insurance under which an insurer undertakes to pay credit balances or debts of an individual, in whole or in part, on the individual’s death or in the event of an impairment or potential impairment of the individual’s income or ability to earn an income, but does not include insurance that is included in or incidental to another class of insurance;

"funeral services insurance" means insurance in respect of a “preneed cemetery or funeral services contract” as defined in the Cremation, Interment and Funeral Services Act, if the total amount payable by the insurer under the contract is $15 000 or less;

"funeral director" means a funeral director as defined in the Cremation, Interment and Funeral Services Act;

"funeral provider" means a funeral provider as defined in the Cremation, Interment and Funeral Services Act;

"motor vehicle dealer" means a person who is registered as a motor vehicle dealer under the Motor Dealer Act;

"product warranty insurance" means insurance, not being insurance included in or incidental to any other class of insurance, against loss of or damage to personal property, other than a motor vehicle, that is contracted between the purchaser of the property and an insurer whereby the insurer undertakes for a specific period to assume the cost of repairs or replacement;

"travel insurance" means

(a) insurance in respect of a trip by a person away from the place where the person ordinarily resides, without any individual assessment of risk, against

(i) loss of, or damage to, personal property that occurs while on a trip,

(ii) loss that is caused by the delayed arrival of personal baggage while on the trip, or

(iii) loss that is incurred from the rental of a motor vehicle while on the trip, or

(b) insurance in respect of a trip by a person away from the place where the person ordinarily resides,

(i) against expenses incurred while on the trip that result from an illness or disability of the person that occurs on the trip,

(ii) against expenses incurred while on the trip that results from bodily injury to, or the death of, the person caused by an accident while on the trip,

(iii) whereby the insurer undertakes to pay one or more sums of money in the event of an illness or the disability of the person that occurs on the trip, or of bodily injury to or the death of, the person that is caused by an accident on the trip,

(iv) against expenses incurred by the person for dental care necessitated by an accident while on the trip, or

(v) in the event that the person dies while on the trip, against expenses incurred for the return of that person’s remains to the place where the person was ordinarily resident before death, or travel expenses for a person to go and pick up that person’s remains, or

(c) insurance against loss that results from the cancellation or interruption of the trip.

"vehicle warranty insurance" means insurance, not being insurance included in or incidental to automobile insurance, against loss of or damage to a motor vehicle arising from mechanical failure, that is contracted between the purchaser of the motor vehicle and an insurer whereby the insurer undertakes for a specific period to assume the cost of repairs or replacement, towing fees, car rentals and accommodation as a result of a covered mechanical failure.

(2) The definitions in section 168 of the Act apply for the purposes of this regulation.

[am. B.C. Regs. 10/94; 137/98; 571/2004, ss. 1 and 2.]

Exemption from section 171 (2) of the Act

2 (1) Section 171 (2) of the Act does not apply

(a) to a person whose only activity as an insurance agent or insurance salesperson is in connection with product warranty insurance sold incidentally to the sale, by that person or that person's employer, of the product,

(b) to a person whose only activity as an insurance agent or insurance salesperson is in connection with forgery insurance sold incidentally to the sale, maintenance or repair, by that person or that person's employer, of chequewriter machines,

(b.1) to

(i) a trust company, credit union, extraprovincial trust corporation, extraprovincial credit union or a bank or the officers or employees of any of them, or

(ii) a service provider under contract to a trust company, credit union, extraprovincial trust corporation, extraprovincial credit union or bank

while acting as insurance agent in connection with credit insurance, incidental to the ordinary business of the trust company, credit union, extraprovincial trust corporation, extraprovincial credit union or bank,

(c) subject to subsection (2) (a), and with the exception of an employee of a mortgage broker registered under the Mortgage Brokers Act, to a person whose only activity as an insurance agent or insurance salesperson is in connection with credit insurance sold incidentally to the granting or arranging of credit by that person or that person’s employer,

(d) to the Real Estate Errors and Omissions Insurance Corporation,

(e) to an employee of the Real Estate Errors and Omissions Insurance Corporation whose only activity as an insurance agent or insurance sales person is in the course of that employment,

(f) to an employee of a licensed general insurance agent who

(i) acts as an insurance salesperson only in respect of automobile insurance issued by the Insurance Corporation of British Columbia,

(ii) is under the direct supervision of a licensed general insurance agent who signs or initials all transactions completed by the employee,

(iii) has not accumulated more than 6 months experience in the aggregate selling insurance as an employee of a licensed general insurance agent,

(iv) has successfully completed the Autoplan Essentials Course offered by the Insurance Corporation of British Columbia, and

(v) has been registered by the licensed general insurance agent with the Insurance Council,

(g) to a motor vehicle dealer or an employee or commissioned sales representative of a motor vehicle dealer whose only activity as an insurance agent or insurance salesperson is in connection with vehicle warranty insurance sold incidentally to the ordinary business of the motor vehicle dealer as such,

(h) Repealed. [B.C. Reg. 571/2004, s. 4 (d).]

(i) to an employee or a commissioned sales representative of a person licensed as a travel agent or travel wholesaler under the Business Practices and Consumer Protection Act if

(i) the travel agent or travel wholesaler holds a licence in respect of travel insurance issued under the rules made by the council,

(ii) the employee or commissioned sales representative has passed a course specified by the rules of the council for travel agents and travel wholesalers,

(iii) the only activity of the employee or commissioned sales representative as an insurance agent or insurance salesperson is in connection with travel insurance sold incidentally to the ordinary business of the travel agent or travel wholesaler, and

(iv) the employee or commissioned sales representative has completed a minimum of 2 hours of continuing education as specified by the council,

(j) to a government employee or agent in the administration of any program established under the Insurance for Crops Act or the Farm Income Insurance Act.

(k) to a person who does not act for compensation or hope or promise of it,

(l) to a person who acts only for the purpose of collecting and receiving premiums for insurance,

(m) to a person who acts on behalf of a mutual fire insurance company,

(n) to a person who acts on behalf of a society that makes contracts of life insurance, accident insurance or sickness insurance,

(o) to a person who is an insurer’s manager or branch manager who is in charge of the insurer’s head office or branch office in British Columbia and is paid a salary and not by commissions,

(p) to a person who is an employee of an insurer or insurance agent if the employee does not solicit insurance, is paid a salary by the insurer or insurance agent and does mainly clerical work,

(q) to a person who is employed in an office of a transportation company to sell its tickets or carry on business as a ticket agent of the company in respect of accident insurance against accidents to persons only while travelling, or in respect of inland transportation insurance or marine insurance against loss of or damage to baggage of persons only while travelling, if the company holds a licence issued under rules made by the council in respect of those classes of insurance, or

(r) to a person, who by a certificate given to the council by

(i) a reciprocal exchange that has a permit under section 187, or

(ii) a company registered under the Insurance (Captive Company) Act,

is certified as being a full time salaried employee of the exchange or company who does not act as an insurance agent or insurance salesperson in any other capacity and who does not receive commissions.

(2) Section 171 (2) does not apply to

(a) a mortgage broker or submortgage broker registered under the Mortgage Brokers Act whose only activity as an insurance agent or insurance salesperson is in connection with credit insurance sold incidentally to the granting or arranging of credit by that mortgage broker or submortgage broker or the employer of the submortgage broker, on condition that the mortgage broker or submortgage broker disclose to the person to whom he or she sells credit insurance

(i) that there is no obligation to buy the credit insurance,

(ii) that he or she is not a licensed insurance agent or salesperson and that the person may wish to seek advice from a licensed insurance agent or salesperson,

(iii) whether it is a group credit insurance policy and, if so, who the policy holder is, and

(iv) the basic terms and conditions of the policy, including how to make a claim, or

(b) a funeral director or funeral provider or an employee of either of them, whose only activity as an insurance agent is in connection with funeral services insurance sold incidentally in the ordinary course of business of the funeral director or funeral provider, on condition that

(i) none of them be named the beneficiary under the contract of funeral services insurance, and

(ii) the funeral director or funeral provider or employee of either of them disclose to the person to whom he or she sells funeral services insurance that

(A) he or she is not a licensed insurance agent or salesperson and that the person may wish to seek advice from a licensed insurance agent or salesperson, and

(B) there is no obligation to buy the funeral services insurance.

[am. B.C. Regs. 179/92, s. 1; 483/92; 108/93; 398/95, s. 1; 571/2004, s. 4.]

Exemption from section 170 of the Act

2.1 Section 170 of the Act does not apply to a travel agent or travel wholesaler who holds a license in respect of travel insurance.

[en. B.C. Reg. 571/2004, s. 3.]

Sections Repealed

3 to 5 Repealed. [B.C. Reg. 571/2004, s. 5.]

Exemption from section 180 (1) of the Act

6 Section 180 (1) of the Act does not apply to a person who

(a) does not act for compensation or in hope or for the promise of it,

(b) is employed as an expert by an insurance adjuster to make an appraisal or adjustment in a special case,

(c) is a solicitor or an employee of one in the solicitor’s regular practice of law,

(d) is an insurance agent licensee acting on behalf of an insurer,

(e) is the manager or branch manager in British Columbia of an insurer authorized to conduct insurance business or is a salaried employee of that insurer, and who in either case is acting for that insurer, or

(f) is a government employee or agent in the administration of any program established under the Insurance for Crops Act or the Farm Income Insurance Act.

[en. B.C. Reg. 571/2004, s. 6.]

[Provisions of the Financial Institutions Act, R.S.B.C. 1996, c. 141, relevant to the enactment of this regulation: section 289 (4) (o)]

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