Ch.13/RIB Act Flashcards
Who is RIBO?
- overseer of in’s. Broker biz
- self governing organization for general ins. Brokers
- regulates licensing, professional competence, ethical conduct, insurance related financial obligations
- examine candidates
- investigates complaints + penalizes
RIBO is governed by?
The council:
13 ppl
- 9 elected brokers
- 4 public members
Acts as “board of directors “
council elected annually
Councils main authority(Q/RCD)
- Qualification and registration committee
- Complaints committee
- Discipline Committee
RIBO 5 departments
- Admin and finance 2. Complaints and investigation 3. Corporation legal services 4. Marketing and communication 5. Qualification and registration
Administration and finance
-financial matters - clerical and office services
Complaints and investigations Dept
- monitor broker conduct and financial position
- spot checks every 3-5 years
- hears and reviews initial complaints
- if serious, assigned to investigator
- once broker notified of complaint agains them, they have 2 week to respond in writing
Corporate legal services
- legal services to council , committees, etc -reports to general manager - counsels any RIBO member on RIBO act
Communication and marketing
-Responsible for all marketing materials and newsltters
Qualification and Registration
-Administers qulification an registration requirements of RIB act -reviews all applications and renewal applications -reponsible for broker examinations and any changes necessary -gives advice and guidance on all q&r issues
policy/certificate
must be provided to cient within 21 days after placing such covrage
fees for services
PRIOR TO PLACING- must be disclosed to the person: the amount of fee, portion of premium retained, total premium
brokers responsibilities
- give knowledgeable advice
- counsel on risk management
- give adequate knowledge of risk to insurer
- co-operate w/ insurer
broker trust account
-premiums from clients must be deposited in to trust account within 3 banking days
brokers are fiduciary in nature
- special trust/confidence in handling/supervising affairs/funds of others
discipline committee
if violation, brought before complaints commiitee -may direct matter to Discipline committee - power to: revoke,
place conditions,
imposr a fine,
impose reimbursement
who can be a broker
see pic
when does RIBO cert. expire
sept 30 every year
notify RIBO of change in status
within 30 days
issuing with unlicenced insurers
-must inform clients that insurer not licensed before place client -req written consent -cannot place auto insurance UNLESS is in excess of min limits -file quarterly w/ superintendent re: UN licence
what investments can be purchased w/ trust funds
- marketable securities
- stock certificates
- bonds
- debentures
- treasury billd or any other thing of value tha can be negotiated by broker
Minimum equity capitalization member needs
$2500 sole prop
$5000 partnership/corp
errors and omissions insurance minimum
$3,000,000
Fidelity Insurance min
$100,000
can broker make other arragements for payment of policy?
YES must be disclosed before insurance placed + shown as service fee no rebating (giving back to cust some of commission or paying part of premium)
RESTRICTED LICENCE
can: -deal w/ public -aid in obtaining insurance/reinsurance -provide risk mgmt -provide insurance consulting services
can broker pay referral lead fees
991-15 misconduct #12 (pg30-31) Can pay referral fees to ppl only if: - licences insueanre agent/broker -licences to seek mutual funds - licenced to sell real estate -licenced mortgage broker Financial planner Providing financing for payment Providing a prod/sec that reduces risk
RIBO misconduct
false advertising rebating harassing potential clients acting as a broker when no see list
what is a principal broker
-has a uthority to act in the name/on behalf of the firm -personally responsible for inproper acts of the firm -responsible to see that all trust accounts/book; records, and accounts maintained
Fine for misconduct
- Maximum: $100,000
- UNLESS member is an individual: max $25000
By law 20
- mus t renew membership every year
- applocation and fees must be filed on/before aug 31
- otherwise, suspended by sept 30
