Module 2: Chapter 19 Flashcards
Definition: Insurance Broker
An insurance broker is any person for any compensation, commission or other thing of value, with respect to persons or property in ON deals directly with the public and:
• Acts or aids in any manner in solicits, negotiates or procures the making of any contract of insurance or reinsurance
• Provides risk management services, including claims assistance where required
• Provides consulting or advisory services with respect to insurance or reinsurance
• Holds him/her-self out as an insurance consultant or examines, appraises, reviews or evaluates any insurance policy, plan or program or makes recommendations or gives advise with regards to any of the above
*No person shall act as an insurance broker unless the person is a registered insurance broker under this act (person: includes a partnership and an unincorporated association)
EXCEPTIONS:
a) Lawyers, accountants or actuaries acting under their professional capacity
b) An insurance agent licensed under the Insurance Act, while acting within the authority of his/her license
c) An insurance adjuster licensed under the Insurance Act, while acting within the authority of his/her license
d) Any individual, partnership or corporation who acts solely as a reinsurance broker
e) A person registered under the Travel Industry Act, acting in respect of travel accident and sickness, baggage or trip cancellation insurance
f) An employee of a person registered under this act performing clerical or administrative duties
g) A regular salaried employee of an insured who duties include negotiating insurance coverage on behalf of his/her employer if the employee does not receive compensation, or commission or other thing of value from any insurance agent, broker or insurer for, or in connection with such services (e.g., the secretary of a commercial client who is communicating with the broker for a quote and not receiving any compensation)
h) A trustee appointed under this act
i) An insurer or subsidiary or an affiliate of an insurer or any employee, officer or director thereof if he or she is not acting in any manner in soliciting, negotiating or procuring the making of any insurance contract (e.g., the bookkeeper at an insurance company)
j) Such other person as are exempted by the regulations
* Only holders of a valid Certificate under this act can hold themselves out as an insurance broker
Definition: Incapacitated Member
is a member suffering from:
• A physical or mental condition or
• Disorder of a nature and extent making it desirable in the interest of the public or
• The member that he or she no longer be permitted to carry on business as a registered insurance broker or that his or her business be restricted
Definition: Membership
- Every person who is registered by the corporation is a member of the corporation
- The manager may cancel a registration for non-payment of any prescribed fee after giving the member at least one month notice in writing of the default and intention to cancel the registration subject to the continuing jurisdiction of the corporation (pg. 3)
*The Corporation aka RIBO
Council Requirements
is the governing body and the board of directors of the Corporation and shall manage and administer its affairs
6(2) consists of 13 people
How many Who How Term
9 Individual RIBO members Elected by members • 5 people have a 3-year term
• 4 people have a 5-year term
4 Individuals from the general public (not RIBO members) Appointed by the Lieutenant Governor in Council • 4 years (or less)
• Eligible for one reappointment
6(3) Council size can vary but at least ¼ of the members of the council shall be persons appointed by the Lieutenant Governor in Council who are NOT members of the corporation
Definition: Annual Report
The Corp. must within 4 months after the termination of each financial year (July 31) provide its members and the Minster an annual report
The report must include:
a) Financial statements and auditors report
b) Summary of complaints received against its members
c) Summary of disciplinary proceedings undertaken against members
d) Summary of the applications for registration and disposition of applications
e) Membership statistics of the Corp, categorized by size and type of member
f) An identification of matters of policy currently under review by the council and any proposed changes in policies or programs
g) Any info considered relevant by the Corp or requested by the Minister
By-Laws
11(1) The council may pass by-laws relating to the administrative and domestic affairs of the corp not inconsistent with this act and the regulations
What does the Qualification & Registration Committee do?
13(2) Determine the eligibility of applicants for certificates or renewals and may require an applicant to take and pass such additional examinations as the council may set
13(3) May direct the Manager to issue or refuse to issue certificates and renewals
13(4) May impose a limitation on a member’s certificate pending demonstration of standard of competence through the completion of experience, courses of study or continuing education
13(5) Maintain a register of all persons who a certificate has been issues identifying the terms of the certificate, registration, revocations, suspension, cancellation and expiration
Duties and Powers of Qualifications & Registration Committee
14(1) Where the QUALIFICATION & REGISTRATION committee proposed to refuse to grant a certificate to an applicant, the Manager on behalf of the Committee shall serve notice of the proposal of the Committee together with written reasons therefore, on the applicant
14(7) After the hearing the committee will:
a) Confirm the decision;
b) Require the applicant to a qualifying exam or training or
c) Direct the manager to register the applicant and issue a certificate
Complaints Committee Requirements
15(1) Each complaints committee shall be composed of such a number of persons as the Council may determine by at least one of the Committee shall be a person who is not a member of the Corporation and who is appointed to the Council or to the panel of lay persons by the Lieutenant Governor in Council
15(3) No member of the discipline committee can also be a member of the complaints committee
15(4) Council will name one member as the chair
15(5) A majority of members constitutes a quorum
Duties and Powers of the Complaints Committee
16(1) Considers and investigates complaints regarding the conduct or actions of any member
a) Must receive a written complaint and the member being investigated has 2 weeks to submit in writing an explanation concerning the matter
b) Must examine (or make a reasonable effort) all records and other documents relating to the complaint
16(2) The complaints committee may:
a) Direct that the matter be referred to the discipline committee
b) Direct that the matter not be referred to the discipline committee
c) Take such action as it considers appropriate
Discipline Committee
17(1) The council determines how many members they want to appoint but at least 4 members must be a person who is not a member of the corporation
17(3) Council will name one member as the chair
17(4) The Chair may appoint a panel of 5 members to hold a hearing
17(5) Three members of a panel (1 of who shall be a person appointed to the council or panel of lay persons by the LG) constitutes a quorum for a hearing and all disciplinary decisions require the vote of a majority of members of the discipline committee presiding at the hearing
17(7) Where directed by the council or a complaints committee, hear and determine allegation of misconduct or incompetence against any member
Duties and powers of Discipline Committee
18(1) The Discipline Committee Shall
a) When so directed by the Council or by a Complaints Committee, hear and determine allegations of misconduct or incompetence against any member
b) Hear and determine matters
c) Perform such other duties as are assigned to it by the Council
18(2) In cases of allegations of misconduct or incompetence:
a) Consider the allegations, hear the evidence and ascertain the facts of the case
b) Determine if the allegations have been proved
c) Determine if the member is guilty of misconduct or incompetence
d) Determine the penalty to be imposed
Discipline Proceedings
(1) The corporation and the member being investigated are parties to the proceeding
(2) Member afforded an opportunity to examination of documentary evidence
(3) Members not to have taken part in investigation
(5) Oral evidence taken before the discipline committee shall be records; copies of transcript are available (at a cost)
(6) Findings of facts are based exclusively on evidence admissible or matters that may be noticed
(7) Only members at the hearing to participate in decision
(8) Release of documentary evidence within a reasonable time after the matter in issue has been determined
Reference to Board of Inquiry
20(1) Reference – manager receives info that a member may be incapacitated, the manager shall make an inquiry as heshe sees appropriate and report to the council. The council may, after giving notice to the member, appoint a board of inquiry consisting of at least 2 members of the corporation and one member of the council appointed by the LG
20(2) Examination – makes inquiries as it considers appropriate and may require the member to submit to physical or mental examinations; if the member refuses or fails to submit to the examination the board may order the certificate be suspended until the member complies
Restraining Orders
21(1) If a member does not comply with their restrictions or suspensions the corporation may apply to a judge of the ON court General Division for a restraining order
