VSA BULLETIN -
January 15, 2010
Issue #3 - 2010
Licensing to sell anti-theft insurance
Clarification of Insurance Council requirements
Insurance industry representatives expressed concern that this week's VSA Bulletin,
dispatched January 13, overstated the licensing requirements of the Insurance Council
of B.C. for so-called “etching” anti-theft coverage.
If anti-theft insurance is sold by a dealership, the requirement is as follows:
- Each dealership needs a corporate licence = $225
- Each individual selling the product needs a restricted licence = $225 per
person
A dealership is also required to name a "Nominee"
- most likely the Business Manager - who would
be the primary contact for the Insurance Council
(questions, complaints, inquiries, notifying the
office of personnel changes) and to ensure that
the dealership is compliant with the rules and
regulations.
The Insurance Council outlined that the "restricted" licences would not face all the
prerequisites for a normal "brokers" licence.
Council determined the following would be
waived:
1. requirement to hold errors and
omissions insurance;
2. requirement for the nominee to attend
a Level 3 seminar;
3. requirement for all applicants to
submit a criminal record check;
4. requirement to complete Council’s
continuing education program; and
5. requirement to meet Council’s
qualifying education.
Anti-Theft or “etching” insurance
must be disclosed as optional
The current series of events followed an
investigation by the Financial Institutions
Commission of B.C. (FICOM) into one dealer's
practices. In November, the Insurance Council
of B.C. dispatched an "open letter" to industry
outlining the new requirements.
FICOM, the Insurance Council and the VSA
share three principal concerns:
- The product is categorized as insurance
and anyone selling it must be licensed;
- There must be full disclosure of all
component parts of the end price:
insurance premium, dealer service charges
and any other add-ons;
- The customer must be advised in writing
that the anti-theft package is OPTIONAL.
www.vehiclesalesauthority.com
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