The following are the permissible activities for a Life Licensed person (and information to help distinguish between activities for a licensed advisor , licensed marketing assistant, and non-licensed assistant - administrative assistant). These activities are based on the regulations.
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New business and underwriting
Permissible activities - For a life licensed person
Advisor |
Marketing assistant |
Non-licensed assistant |
|---|---|---|
Full-time advisor doing all sales and sales-related activities |
Administrative duties with some sales activities on a situational needs basis only as defined below |
Administrative duties with no sales |
Advisor |
Marketing assistant |
Non-licensed assistant |
|---|---|---|
Full-time sales and sales-related activities |
No - Primary focus is to provide administrative support to the employing advisor |
No - Sole focus is to provide administrative support to the employing advisor |
Solicitation of new clients |
No |
No |
Supplementary medical questions |
Yes |
No |
Answer product related questions |
Yes - Based on appropriate training and experience |
No |
Completion of full Life Insurance App’n (including evidence) |
Yes - Based on appropriate training and experience |
No |
Collect and report |
Yes |
Yes |
Completion of Disclosure |
No |
No |
Giving advice to clients |
No |
No |
Assisting clients with contractual rights (group conversion, term conversion, GI Option) |
Yes * except in Quebec, where full financial needs analysis is required for such transactions, and must only be conducted by an advisor |
No |
Participate in activities that generate first year commissions |
Yes |
No |
Completion of AML information within the application or forms |
No |
No |
Completing an application non face-to-face |
No |
No |
Advisor |
Marketing assistant |
Non-licensed assistant |
|---|---|---|
Complete new applications |
Yes |
No |
Answer product related questions |
Yes |
No |
Verify account information |
Yes |
Yes |
Provide current account values |
Yes |
Yes |
Advise date of a transaction |
Yes |
Yes |
Accept funds for subsequent purchase |
Yes |
No |
Complete and finalize forms for subsequent transactions |
Yes |
No |
Do switches or exchanges |
Yes |
No |
Process any redemptions |
Yes |
No |
Complete T2033 |
Yes |
No |
Accept instructions from client to change Automatic Cheque Plan amounts or allocation and process |
Yes |
No |
Complete Automatic Monthly Exchange or Automatic Withdrawal request |
Yes |
No |
Complete RRIF or annuitizing of a registered segregated fund |
Yes |
No |
A replacement occurs:
- Where the purchase of an individual life insurance contract is likely to result in termination, cancellation or reduction in benefits of another insurance contract. A reduction of benefits may include:
- the use of significant cash values of an existing policy for the ongoing funding of a new policy;
- changed to paid-up insurance or continued as extended term insurance or under automatic premium loan;
- the loss of certain tax benefits;
- converting a term insurance to a permanent insurance. A term conversion is a contractual right where a term insurance (policy or benefit) is being converted to a permanent insurance. In circumstances where a client's protection would be reduced, this would be considered a replacement.
- Example: A client has a term insurance (policy or benefit/rider) with a face amount of $500,000 and wishes to convert to a permanent insurance of $300,000, and keep the remaining $200,000 term in force - it is not a replacement. However, if the $200,000 term were to be cancelled, it would be a replacement.
Quebec specific
In Quebec, an individual life insurance contract includes health insurance (long term care insurance, critical illness insurance, Personal health insurance and disability insurance.) In addition to #1 (above) a replacement in Quebec also occurs:
- Where a client's adhesion to a group insurance contract is likely to result in the termination, cancellation or reduction of benefits of an individual insurance policy.
- In certain situations where a person has coverage without an actual policy having been issued such as:
- a signed insurance proposal for which:
- the mode premium has been paid in full, by cheque;
- the signatory of the proposal has given either a bank authorization or a written authorization to transfer funds from one policy issued by an insurer to another policy issued by the same insurer;
- a signed insurance proposal providing for temporary coverage of not more than one year, for which the temporary insurance premium has been paid.
- a signed insurance proposal for which:
Where an insurer is prepared to issue a contract in accordance with the terms and conditions of the insurance proposal, but subject to payment of an additional premium, the representative must follow the replacement procedure before he obtains a similar contract without any additional or extra premium from another insurer.