How Is Life Insurance Regulated in British Columbia?
All across Canada, provincial regulatory bodies for insurance exist to protect the public from unscrupulous insurance salespeople and inferior products. Insurance in British Columbia is governed by the Insurance Council of British Columbia, and they are responsible for ensuring insurance and those who sell it are acting with integrity and in line with the Financial Institutions Act.
Today we will discuss life insurance BC regulations.
The council’s responsibility and power
Those who sell insurance are required to be licensed, and in order to be licensed you must be trained and educated to provincial standards. The Council is responsible for ensuring the minimum standards are met and held by licensees. Certain licenses require a minimum amount of experience on top of the minimum required education/coursework, and everyone who holds an insurance sales license in British Columbia is required to maintain and update their insurance knowledge through regular continuing education.
The Council is responsible for awarding licenses and ensuring that all those who apply for an insurance license are competent and trustworthy. Further to this, they are required to confirm financial reliability of the applicants and to confirm that the intent to sell and promote insurance in BC is done in accordance to usual practice.
Any licensee who commits an act that contravenes the Financial Institutions Act or the Council’s Rules and Code of Conduct, is subject to discipline by the Council. This could result in the suspension of licensing or the revocation of a license. Licensees are not the sole jurisdiction of the Council, and when and where contravention of the rules and codes of conduct cross lines with the law of the land, the Council reserves the right to forward complaints and cases to the appropriate authorities. It is possible to be penalized by the insurance Council and by local authorities if a situation warrants it.
Public protection is paramount
We live in a world filled with phishing scams and all kinds of telephone schemes designed to separate people from their hard-earned money. Although there have been insurance scams in the past, the public should be able to rely on the insurance agent or broker they willingly choose to represent their interests. The rigorous standards and governance of licensed insurance salespeople are maintained to defend the public from bad-faith sales, and to give the public confidence in the trustworthiness of their insurance providers, agents, and brokers.
Whether you are just looking to review insurance quotes in BC, or you are on the hunt for the best life insurance policy for your situation, we want you to know that when shopping for insurance products in BC, you can trust your licensed brokers and agents.
You can never be too careful
Never give your insurance information to unsolicited callers claiming to work for your current insurance provider, or trying to sell you a new product. If in doubt about an email, text message, or telephone call regarding your insurance, call your provider directly to confirm whether or not they contacted you. Never agree to anything over the phone and never provide your financial information. If you receive an email with attachments and it seems suspect, delete it. If you do not currently have insurance but keep receiving calls or threatening emails, contact your local authorities to report the harassment.
Your life insurance plan is a very important aspect your financial wellbeing, and there are many rules and regulations in place to maintain the standard of insurance products and transactions. If you have any questions about life insurance in BC, insurance sales, regulations, or simply require assistance getting insurance quotes, contact us today. We can help find you an approved insurer that can work within your budget.