Permissible activities - For a life licensed person

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.

Advisor Marketing assistant
(Life and accident & sickness licence)
Non-licensed assistant
(Administrative 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
activities ever

Advisor Marketing assistant
(Life and accident & sickness licence)
Non-licensed assistant
(Administrative
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
premium payment
Yes Yes
Completion of Disclosure
Replacement forms
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
(Life and accident & sickness licence)
Non-licensed assistant
(Administrative 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:

  1. 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:

  1. 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.
  2. 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.

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.