Insurance Agents and Adjusters Regulation

Insurance Agents and Adjusters Regulation, M.R. 389/87 R The Insurance Act , C.C.S.M. c. I40 Regulation 389/87 R Registered November 13, 1987 bilingual version (HTML) Table of Contents Section 1 Definitions PART 1 INSURANCE AGENTS AND ADJUSTERS GENERALLY 2 Examination — insurance agent licence 3 Repealed 4 When an examination may not be required 5 Temporary licence 6-9 Repealed 10 Fines and costs and interest rates 11 Exemptions re licence application approvals 12 Liability insurance — life, accident and sickness 13 Liability insurance — general insurance 14 Liability insurance — accident and baggage insurance 15 Liability insurance — hail insurance agents 16 Liability insurance — adjusters other than hail insurance adjusters 16.1 Liability insurance — restricted insurance agent licence 17 Coverage in respect of more than one class of agent licence 18 Security by special insurance brokers 19 Limit on adjustable claims — agents 20 Transition provisions re liability insurance 21 Limited exemption for lawyers — title insurance PART 2 RESTRICTED INSURANCE AGENT LICENCES 22 Application of Part 2 23 Definitions 24 Persons and entities eligible for restricted licence 25 Classes or types of insurance for which a restricted licence may be issued 26 Applying for a restricted licence 27 Employees of other entities 28 Qualifications of designated official 29 Replacement or incapacity of designated official 30 Restricted licence holder's responsibilities 31 Qualified entity's responsibilities 32 Personal information received from consumer 33 Responsibilities of insurers 34 Non-application of subsection 371(1.1) of the Act to certain restricted licence holders 35 Exemption of certain persons from application of subsection 369(1) of the Act PART 3 GENERAL PROVISIONS DEFINITIONS OF GENERAL APPLICATION Definitions 1 In this regulation, "Act" means The Insurance Act ; (« Loi ») "agent" means a person required, under Part XV of the Act, to obtain a licence to act as an insurance agent, and includes an individual designated to represent a firm, partnership, or corporation as operating agent, and a salaried employee or officer of a firm, partnership, or corporation that holds a licence, who is named as the operating agent thereof; (« agent ») "appeal board" means The Insurance Agents' and Adjusters' Licensing Appeal Board established under subsection 389.2(1) of the Act; (« Commission d'appel ») "insurance council" means the General Insurance Council, the Life Insurance Council and the Insurance Adjusters Council established by the Insurance Councils Regulation ; (« conseil d'assurance ») "Insurance Council of Manitoba" means the Insurance Council of Manitoba established by the Insurance Councils Regulation ; (« Conseil d'assurance du Manitoba ») "licence" means a licence issued, under Part XV of the Act, to a person authorizing that person to act as an agent. (« licence ») M.R. 52/2001 PART 1 INSURANCE AGENTS AND ADJUSTERS GENERALLY EXAMINATIONS Examination — insurance agent licence 2(1) Subsection (1.1) applies to a person (a) who makes a first application for an insurance agent licence; (b) who (i) applies to renew his or her insurance agent licence, and (ii) is required by the superintendent to meet the requirements of subsection (1.1); (c) who is required by the superintendent to meet the requirements of subsection (1.1) as a condition of terminating the suspension of the person's insurance agent licence; (d) who applies for an insurance agent licence after his or her last-issued licence was revoked or cancelled by the superintendent; or (e) who applies to renew his or her insurance agent licence later than 12 months after his or her last-issued licence expired. 2(1.1) A person described in any of clauses (1)⁠(a) to (e) must, within the 12 months before the licence is issued or renewed, (a) have met the educational requirements imposed by the superintendent; and (b) have passed a written examination set by the superintendent. 2(2) to (6) [Repealed] M.R. 71/2003. 2(7) An applicant who fails an examination may take the examination again, but an applicant may not take an examination more than three times in any six-month period. M.R. 71/2003 3 [Repealed] M.R. 71/2003 When an examination may not be required 4 Despite any provision of this regulation, the superintendent may not require an applicant for an insurance agent licence to pass an examination of any type if (a) the applicant (i) is a resident of another province of Canada, a territory of Canada or a state of the United States, but is duly licensed in that province, territory or state as an agent for the class of insurance being applied for, and (ii) is otherwise qualified and suitable; and (b) the laws of the applicant's province, territory or state of residence provide that an applicant from the Province of Manitoba may be licensed in that province, territory or state as a non-resident agent. M.R. 71/2003 ; 215/2014 TEMPORARY LICENCES Temporary licence 5 The superintendent may issue a temporary licence for a period not exceeding six months without a written examination in the case of applicants other than applicants for a licence to transact life insurance, in any of the following circumstances: (a) where the applicant is the surviving spouse, surviving common-law partner, next-of-kin or personal representative of a deceased agent, who, at the time of death, held a subsisting licence; or (b) where the applicant is the spouse, common-law partner, next-of-kin, employee, legal guardian or committee of an agent who immediately preceding his or her disability through sickness, mental incapacity or injury held a subsisting licence. M.R. 97/2004 6 [Repealed] M.R. 71/2003 7 to 9 [Repealed] M.R. 52/2001 ; 215/2014 FINES AND COSTS IN CONNECTION WITH INVESTIGATIONS AND DISCIPLINE HEARINGS Fines and costs and interest rates 10(1) A fine imposed by the superintendent under clause 375(1.1)⁠(c) of the Act, or by the appeal board under subsection 389.3(5) of the Act, must not (a) be more than $25,000. for an individual; and (b) be more than $50,000. for a body corporate. 10(2) For the purposes of clause 375(1.1)⁠(d) of the Act, the costs of an investigation include (a) time spent by the superintendent or his or her staff or by an insurance council or its staff, assessed at a rate of $75. per hour; (b) costs incurred with respect to any persons retained by the superintendent or insurance council for the purpose of the investigation, including costs of legal counsel; and (c) disbursements, including but not limited to travel expenses and costs of searches. 10(3) Fines assessed by an insurance council or the appeal board are payable to the Minister of Finance and may be paid through the office of the Insurance Council of Manitoba. 10(4) Costs assessed by an insurance council or the appeal board are payable to and may be retained by the Insurance Council of Manitoba. 10(5) Costs payable to the Insurance Council of Manitoba are a debt due to the Council and may be recovered by it by action. 10(6) For the purposes of subsection 375(1.7) of the Act, the interest rate on the unpaid portion of any fine or costs shall, (a) for the period January 1 to June 30 in each year, be the sum of the prime lending rate of the principal banker of the province plus 2% per year, as the prime rate stood on January 1 of that year; and (b) for the period July 1 to December 31 in each year, be the sum of the prime lending rate of the principal banker of the province plus 2% per year, as the prime rate stood on July 1 of that year. M.R. 52/2001 ; 215/2014 EXEMPTIONS RESPECTING LICENCE APPLICATION APPROVALS Exemption for property and casualty licences 11(1) Subject to subsection (2), applicants for property and casualty insurance agent licences, except for those applicants who are named as operating agents under subsection 371(4) of the Act, are exempt from the operation of subsection 370(2) of the Act. 11(2) The application of an applicant who is exempt under subsection (1) must be approved by the operating agent of the applicant's employer. M.R. 52/2001 LIABILITY INSURANCE REQUIREMENTS FOR AGENTS AND ADJUSTERS Liability insurance — life, accident and sickness 12(1) For the purposes of subsection 371(1.1) of the Act, an applicant for an insurance agent licence of any of the following types or classes shall have, and an agent who holds any of such licences shall maintain, liability insurance of at least $1,000,000. in respect of any one occurrence, with an overall policy aggregate of at least $5,000,000.: (a) life; (b) accident and sickness; (c) life, accident and sickness. 12(2) The liability insurance required by subsection (1) (a) shall, at a minimum, (i) include extended reporting for a period of five years, (ii) include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after June 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance, (ii.1) include extended coverage for fraudulent acts and dishonest acts, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage that covers all of the insurance products that the insured is or will be licensed to sell, (v) include coverage for (A) financial planning services provided by the insured, if applicable, (B) the insured's supervisory activities, if applicable, and (C) any unlicensed employee for whose acts the insured is responsible; and (b) shall not be restricted to particular insurers' products. 12(3) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 371(1.1) of the Act shall not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 52/2001 ; 47/2010 Liability insurance — general insurance 13(1) For the purposes of subsection 371(1.1) of the Act, an applicant for a general insurance agent licence shall have, and an agent who holds such a licence shall maintain, liability insurance of at least $1,000,000. in respect of any one occurrence, with an overall policy aggregate of at least $2,000,000. 13(2) The liability insurance required by subsection (1) (a) shall, at a minimum, (i) include extended reporting for a period of 12 months, (ii) include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after June 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance, (ii.1) include extended coverage for fraudulent acts and dishonest acts, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage that covers all of the insurance products that the insured is or will be licensed to sell, (v) include coverage for (A) the insured's supervisory activities, if applicable, and (B) any unlicensed employee for whose acts the insured is responsible; and (b) shall not be restricted to particular insurers' products. 13(3) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 371(1.1) of the Act shall not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 52/2001 ; 47/2010 Liability insurance — accident and baggage insurance 14(1) For the purposes of subsection 371(1.1) of the Act, an applicant for an accident and baggage insurance agent licence shall have, and an agent who holds such a licence shall maintain, liability insurance of at least $500,000. in respect of any one occurrence, with an overall policy aggregate of at least $1,000,000. 14(2) The liability insurance required by subsection (1) (a) shall, at a minimum, (i) include extended reporting for a period of 12 months, (ii) include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after June 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance, (ii.1) include extended coverage for fraudulent acts and dishonest acts, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage that covers all of the insurance products that the insured is or will be licensed to sell, (v) include coverage for (A) the insured's supervisory activities, if applicable, and (B) any unlicensed employee for whose acts the insured is responsible; and (b) shall not be restricted to particular insurers' products. 14(3) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 371(1.1) of the Act shall not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 52/2001 ; 47/2010 Liability insurance — hail insurance agents 15(1) For the purposes of subsection 371(1.1) of the Act, an applicant for a hail insurance agent licence shall have, and an agent who holds such a licence shall maintain, liability insurance of at least $250,000. in respect of any one occurrence, with an overall policy aggregate of at least $500,000. 15(2) The liability insurance required by subsection (1) (a) shall, at a minimum, (i) include extended reporting for a period of 12 months, (ii) include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after June 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance, (ii.1) include extended coverage for fraudulent acts and dishonest acts, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage that covers all of the insurance products that the insured is or will be licensed to sell, (v) include coverage for (A) the insured's supervisory activities, if applicable, and (B) any unlicensed employee for whose acts the insured is responsible; and (b) shall not be restricted to particular insurers' products. 15(3) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 371(1.1) of the Act shall not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 52/2001 ; 47/2010 Liability insurance — adjusters other than hail insurance adjusters 16(1) For the purposes of subsection 385(5.1) of the Act, an applicant for an insurance adjuster licence shall have, and the holder of such a licence shall maintain, liability insurance of at least $1,000,000. in respect of any one occurrence, with an overall policy aggregate of at least $1,000,000. 16(2) Subsection (1) does not apply to an applicant who applies for, or a licensee who holds, an insurance adjuster licence only for hail insurance claims. 16(3) The liability insurance required by subsection (1) (a) shall, at a minimum, (i) include extended reporting for a period of 12 months, (ii) include extended coverage for errors or omissions that were made before the inception of the insurance, provided that the errors and omissions were made on or after July 1, 2001 and the insured had no knowledge of the claims before the inception of the insurance, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage for (A) the insured's supervisory activities, if applicable, and (B) any unlicensed employee for whose acts the insured is responsible; and (b) shall not be restricted to particular insurers' products. 16(4) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 385(5.1) of the Act shall not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 52/2001 Liability insurance — restricted insurance agent licence 16.1(1) For the purposes of subsection 371(1.1) of the Act, an applicant for a restricted insurance agent licence under section 380.1 of the Act must have, and an agent who holds such a licence must maintain, liability insurance of at least $1,000,000 in respect of any one occurrence, with an overall policy aggregate of at least $2,000,000. 16.1(2) The liability insurance required by subsection (1) (a) must, at a minimum, (i) include extended reporting for a period of 12 months, (ii) include extended coverage for fraudulent acts and dishonest acts, (iii) provide coverage amounts that are exclusive of defence and investigative expenses, (iv) include coverage that covers all of the insurance products that the insured is or will be licensed to sell, (v) include coverage for (A) the insured's supervisory activities, if applicable, and (B) any unlicensed employee for whose acts the insured is responsible; and (b) must not be restricted to particular insurers' products. 16.1(3) The underwriting insurer of a liability insurance policy issued, or a group liability insurance policy providing coverage, to satisfy the requirements of subsection 371(1.1) of the Act must not, without providing the superintendent and the Insurance Council of Manitoba with at least 15 days' prior notice by registered mail, (a) cancel, terminate or refuse to renew the policy or group policy; or (b) delete an insured from the group policy. M.R. 215/2014 Coverage in respect of more than one class of agent licence 17 When an applicant is applying for a licence in more than one of the classes referred to sections 12 to 15, or an licensee holds a licence of more than one of those classes, the applicant or licensee may satisfy the combined liability insurance requirements for the licences through one policy or group policy, if that policy (a) provides for coverage amounts in the highest amounts required for any of the licences; (b) includes coverage that covers all of the insurance products that the insured is or will be licensed to sell under each of the licences; and (c) meets all of the other coverage requirements set out in sections 12 to 15 applicable to the licences. M.R. 52/2001 SECURITY BY SPECIAL INSURANCE BROKERS Security by special insurance brokers 18 For the purposes of subsection 381(5) of the Act, the security that a person must provide and maintain must (a) be in the amount of $15,000; and (b) be of a type or in a form that is satisfactory to the superintendent. M.R. 166/2008 LIMIT ON ADJUSTABLE CLAIMS — AGENTS Limit on claims that agents may adjust 19 For the purpose of subclause 385(9)⁠(f)⁠(i) of the Act, the prescribed amount is $5,000. M.R. 166/2008 GENERAL PROVISIONS Transition provisions re liability insurance 20(1) Subclauses 12(2)⁠(a)⁠(ii.1), 13(2)⁠(a)⁠(ii.1), 14(2)⁠(a)⁠(ii.1) and 15(2)⁠(a)⁠(ii.1) do not apply in respect of a person who (a) applies for a licence; or (b) holds a licence; until he or she applies for a licence that takes effect on or after June 1, 2010, or to renew a licence to take effect on or after that date. In such a case, the person must satisfy the superintendent that he or she will have the required insurance in effect on the effective date of the licence. 20(2) Despite subsection (1), if a licence holder's existing liability insurance has a term that expires after May 31, 2010, the superintendent may renew the person's licence on the basis of the person's existing liability insurance. However, the person must obtain replacement liability insurance that takes effect immediately after the expiration of that term and fully complies with whichever of sections 12 to 15 applies to him or her. M.R. 47/2010 Limited exemption for lawyers — title insurance 21 In respect of a lawyer's services in obtaining for a client, or assisting a client in obtaining, title insurance in order to complete a purchase or financing of real estate or to protect the client's interest in real estate, the lawyer is exempt from the requirement to hold a licence under subsection 369(1) of the Act if the lawyer (a) is entitled to practice law in Manitoba and provides the services in the usual course of his or her profession; and (b) is not, whether directly or indirectly, paid or offered a commission or other compensation or anything of value by any person for providing the services. M.R. 215/2014 PART 2 RESTRICTED INSURANCE AGENT LICENCES Application of Part 2 22 For the purpose of section 380.1 of the Act, this Part applies in respect of restricted insurance agent licences within the meaning of that section. M.R. 215/2014 Definitions 23 The following definitions apply in this Part. "cargo insurance" means insurance that is within the class of property insurance and provides coverage only against damage to or the loss of goods in transit. (« assurance des marchandises ») "creditor's disability insurance" means insurance (a) that is within the class of accident and sickness insurance and is creditor's group insurance as defined in section 203 of the Act; and (b) under which the insurer undertakes to pay all or part of the amount of a debtor's debt to the creditor named in the policy in the event of bodily injury to, or the illness or disability of, (i) the debtor, when the debtor is an individual, or the spouse of such a debtor, (ii) an individual who is a guarantor of all or part of the debt, (iii) a director or officer of the debtor, when the debtor is a corporation, or (iv) an individual who is essential to the ability of the debtor to meet the debtor's financial obligations, when the debtor is an entity other than an individual or a corporation. (« assurance invalidité de crédit ») "creditor's life insurance" means insurance (a) that is within the class of life insurance and is creditor's group insurance as defined in section 148 of the Act; and (b) under which the insurer undertakes to pay all or part of the amount of the amount of a debtor's debt to the creditor named in the policy or, if the debt is a line of credit for a small business or a farm, fishery or ranch, all or part of the amount of the credit limit of the line of credit owing to the creditor, in the event of the death of (i) the debtor, when the debtor is an individual, or the spouse of such a debtor, (ii) an individual who is a guarantor of all or part of the debt, (iii) a director or officer of the debtor, when the debtor is a corporation, or (iv) an individual who is essential to the ability of the debtor to meet the debtor's financial obligations, when the debtor is an entity other than an individual or a corporation. (« assurance-vie de crédit ») "creditor's loss-of-employment insurance" means insurance (a) that is within the class of credit protection insurance; and (b) under which the coverage is limited to the insurer's undertaking to pay, without any individual assessment of risk, all or part of the amount of a debtor's debt to the creditor named in the policy in the event (i) that the debtor — being an individual — becomes involuntarily unemployed, or (ii) that an individual who is a guarantor of all or part of the debt becomes involuntarily unemployed. (« assurance crédit en cas de perte d'emploi ») "creditor's vehicle inventory insurance" means insurance that is within the class of credit protection insurance and provides coverage only against direct and accidental loss of or damage to vehicles — some or all of which have been financed by a creditor — that are held in stock for display and sale purposes by a debtor of the creditor. (« assurance crédit pour stock de véhicules ») "deposit-taking institution" means (a) a bank; (b) a credit union that is incorporated or continued under The Credit Unions and Caisses Populaires Act ; (c) a loan corporation or trust corporation that is incorporated or continued under The Corporations Act and entitled to carry on business under Part XXIV of that Act; or (d) an extra-provincial loan corporation or extra-provincial trust corporation, as defined in section 315 of The Corporations Act , that is entitled to carry on business under Part XXIV of that Act. (« établissement de dépôt ») "export credit insurance" means insurance (a) that is within the class of surety insurance; and (b) under which the insurer undertakes, to an exporter of goods or services, to guarantee payment for goods or services exported by the exporter. (« assurance crédit des exportateurs ») "financial institution" means: (a) a bank; (b) a credit union that is incorporated or continued The Credit Unions and Caisses Populaires Act , or a credit union incorporated under the laws of a jurisdiction other than Manitoba that is registered as provided by section 129 of that Act; (c) a loan corporation or trust corporation incorporated or continued under The Corporations Act and entitled to carry on business under Part XXIV of that Act, or an extra-provincial loan corporation or extra-provincial trust corporation, as defined in section 315 of that Act, that is entitled to carry on business under Part XXIV of that Act; (d) an entity licensed to transact insurance under the Act, or an entity incorporated, continued or licensed under a similar Act of Parliament or of any province or territory of Canada; (e) a local cooperative credit society as defined section 2 of the Cooperative Credit Associations Act (Canada); (f) an association incorporated or continued under the Cooperative Credit Associations Act (Canada); (g) an entity that is incorporated, continued or licensed under an Act of Parliament or of any province or territory of Canada and is primarily engaged in dealing in securities, including portfolio management and investment counselling; or (h) an entity that (i) is engaged primarily in the business of providing financial services, including deposit, loan or trust services, transacting insurance or dealing in securities; and (ii) is incorporated or continued under the laws of a jurisdiction outside Canada or is otherwise governed by the laws of such a jurisdiction. (« établissement financier ») "funeral expense insurance" means insurance that is within the class of life insurance and under which the insurer undertakes to pay a maximum of $15,000 for funeral services for the insured under a prearranged funeral plan as defined in The Prearranged Funeral Services Act . (« assurance des frais funéraires ») "guaranteed asset protection insurance" means insurance that is within the class of property insurance or automobile insurance and (a) provides coverage to a vehicle or equipment owner or lessee — in the event of the unrecovered theft of the vehicle or equipment or its total loss — for some or all of the amount owed on the purchase financing for the vehicle or equipment or on the lease agreement, after credit for money received in respect of the theft or loss from any other insurance under which the owner or lessee has coverage for the vehicle's or equipment's value; and (b) may also provide coverage for some or all of the cost of purchasing or leasing a replacement vehicle or replacement equipment. (« garantie d'écart ») "line of credit" means a commitment on the part of a deposit-taking institution or sales finance company to lend one or more amounts to a debtor without a predetermined repayment schedule. (« marge de crédit ») "mortgage broker" means a mortgage broker, as defined in The Mortgage Brokers Act , that is registered in accordance with that Act. (« courtier d'hypothèques ») "mortgage insurance" means the class of mortgage insurance prescribed in the Classes of Insurance Regulation , Manitoba Regulation 165/2008. (« assurance hypothèque ») "personal travel insurance" means insurance that is within the class of life insurance or the class of accident and sickness insurance, or within both those classes, and (a) that provides coverage to an individual with respect to a trip by the individual away from the place where the individual ordinarily resides (i) against expenses incurred while on the trip that result from an illness or disability of the individual that occurs on the trip, (ii) against expenses incurred while on the trip that result from the death of or bodily injury to the individual caused by an accident while on the trip, (iii) against expenses incurred by the individual for dental care necessitated by an accident while on the trip, or (iv) in the event of the individual's death while on the trip, against expenses incurred for the return of the individual's remains to the place where the individual ordinarily resided before death, or for travel expenses incurred by a relative of the individual who is required to travel to identify the individual's remains, or (b) under which the insurer undertakes to pay one or more sums of money in the event of an illness or the disability of the individual that occurs on the trip, or in the event of the death of or bodily injury to the individual that is caused by an accident while on the trip. (« assurance voyage ») "portable electronics insurance" means insurance that is within the class of property insurance and provides coverage against damage to or the loss of a portable electronic device. (« assurance des appareils électroniques portatifs ») "portable electronics vendor" means a person or entity that (a) sells or leases portable electronics devices; or (b) otherwise provides portable electronics devices in connection with a transaction between the person or entity and another person or entity. (« vendeur d'appareils électroniques portatifs ») "rent" , in relation to a vehicle, means rent the vehicle for a period of 90 days or less. (« louer ») "rented-vehicle accidental injury or death insurance" means insurance that is within the class of automobile insurance and provides coverage to a vehicle renter and other occupants of the rented vehicle for bodily injury or death and reimbursement for medical expenses resulting from a vehicular accident involving the rented vehicle that occurs during the rental period. (« assurance accidents corporels accompagnant une location de véhicule ») "rented-vehicle contents insurance" means insurance that is within the class of property insurance and provides coverage to a vehicle renter and other occupants of the rented vehicle against damage to or the loss of personal property in the rented vehicle during the rental period. (« assurance des biens se trouvant dans un véhicule de location ») "rented-vehicle liability insurance" means insurance that is within the class of automobile insurance and provides coverage to a vehicle renter and other authorized drivers of the rented vehicle for liability arising from its operation. (« assurance responsabilité civile pour véhicule de location ») "restricted licence holder" means a person who holds a restricted insurance agent licence issued under subsection 380.1(2) of the Act. (« titulaire de licence restreinte ») "sales finance company" means a corporation, other than a financial institution, that provides consumer loans, or provides or arranges for credit. (« société de financement de ventes à crédit ») "small business" means (a) a business that is a small business corporation as defined in subsection 248(1) of the Income Tax Act (Canada); or (b) an unincorporated business that would, if incorporated, be a small business corporation as defined in subsection 248(1) of the Income Tax Act (Canada). (« petite entreprise ») "travel agency" means a business that sells travel services to consumers when the travel services are provided by a person other than the travel agency. ( « agence de voyage ») "travel interruption and property-loss insurance" means insurance that (a) is within the class of property insurance; and (b) without any individual assessment of risk, provides coverage — to an individual with respect to a trip by the individual away from the place where the individual ordinarily resides — against (i) loss that results from the cancellation or interruption of the trip, (ii) the loss of or damage to personal property that occurs while on the trip, or (iii) loss that is caused by the delayed arrival of personal baggage while on the trip. (« assurance interruption de voyage et assurance des biens ») "travel services" means transportation or sleeping accommodation for the use of a traveller, tourist or sightseer and includes other services combined with the transportation or sleeping accommodation. (« services de voyage ») "vehicle" has the same meaning as in subsection 1(1) of The Highway Traffic Act . (« véhicule ») M.R. 215/2014 ; 153/2016 Persons and entities eligible for restricted licence 24 For the purpose of section 380.1 of the Act, the following persons and entities may apply for and hold a restricted insurance agent licence (a) a deposit-taking institution; (b) a sales finance company; (c) a person or entity that provides transportation service for people or goods; (d) a person or entity that carries on the business of a travel agency; (e) a person or entity that carries on the business of an automobile dealership, watercraft dealership, recreational vehicle dealership, farm implement dealership or construction equipment dealership; (f) a mortgage broker that carries on business in Manitoba in accordance with The Mortgage Brokers Act ; (g) a person or entity that carries on the business of a customs brokerage; (h) a person or entity that carries on the business of freight forwarding; (i) a person or entity that carries on the business of renting vehicles to the public; (j) a funeral director who holds a licence under The Prearranged Funeral Services Act ; (k) a portable electronics vendor. M.R. 215/2014 Classes or types of insurance for which a restricted licence may be issued 25 The following are the classes or types of insurance in respect of which a restricted license may be issued: (a) cargo insurance; (b) creditor's disability insurance; (c) creditor's life insurance; (d) creditor's loss-of-employment insurance; (e) creditor's vehicle inventory insurance; (f) export credit insurance; (g) funeral expense insurance; (g.1) guaranteed asset protection insurance; (h) mortgage insurance; (i) personal travel insurance; (j) portable electronics insurance; (k) rented-vehicle accidental injury or death insurance; (l) rented-vehicle contents insurance; (m) rented-vehicle liability insurance; (n) travel interruption and property-loss insurance. M.R. 215/2014 ; 153/2016 Applying for a restricted licence 26(1) An application for a restricted insurance agent licence must (a) be filed with the superintendent; (b) be made in the form required by the superintendent; (c) specify the class or type of insurance that the applicant wishes to transact as an incidental seller; and (d) contain the information and be accompanied by the material required by the superintendent, including the information and material described in subsection (2). 26(2) An application for a restricted insurance agent licence must be accompanied by (a) the written recommendation of an insurer that (i) has an agreement with the applicant under which the applicant is to be authorized to transact insurance for the insurer as an incidental seller, and (ii) is licensed under the Act to transact the class of insurance (A) for which the licence is to be issued, or (B) that includes the type of insurance for which the licence is to be issued; (b) the written designation of a designated official under the licence who is designated to be responsible for receiving notices and other documents on the applicant's behalf and for supervising the applicant's insurance activities under the restricted licence; (c) a statement of the number of persons who will be authorized to negotiate, solicit or transact insurance on behalf of the applicant when and if the licence is issued; and (d) evidence acceptable to the superintendent that the applicant has liability insurance that satisfies the requirements of subsection 371(1.1) of the Act. 26(3) For greater certainty, subsection 371(1.1) of the Act applies to restricted insurance agent licences under this section, except as provided in subsection (4). 26(4) Clause (2)⁠(d) does not apply to a person who applies for restricted insurance agent licence or to renew such a licence if the person is a member institution of the Canada Deposit Insurance Corporation or is a credit union incorporated under The Credit Unions and Caisses Populaires Act . 26(5) To obtain the renewal of a restricted agent licence, the holder of the licence must apply in accordance with clauses (1)⁠(a), (b) and (d), and those clauses together with clause (2)⁠(d) apply, with necessary changes, to the application. 26(6) The superintendent may issue a restricted insurance agent licence if the superintendent is satisfied that (a) the applicant (i) is an incidental seller as defined in subsection 380.1(1) of the Act, (ii) qualifies under section 24, and (iii) has complied with this section; and (b) the application is in respect of a class or type of insurance listed in section 25 and satisfies the requirements of this section. 26(7) The superintendent may specify (a) which class or type of insurance listed in section 25 the restricted licence holder may transact as an incidental seller; and (b) the category of business activity in relation to which the restricted licence holder may transact insurance as an incidental seller. M.R. 215/2014 Employees of other entities 27(1) Without limiting the application of subsection 380.1(3) of the Act, a restricted insurance agent licence authorizes the holder, through the employees of another entity that qualifies under subsection (2) (referred to in this regulation as a "qualified entity"), to act or offer to act as an agent in respect of the class or type of insurance specified in the licence. 27(2) A restricted licence holder may only act or offer to act as an agent through the employees of another entity if (a) the entity provides its employees' services to the restricted licence holder under a contract that provides adequate consumer protection and adequate control by the restricted licence holder so that the restricted licence holder is able to meet its obligations under the licence and to comply with this regulation; and (b) the restricted licence holder provides the superintendent with the information about the entity and the contract that the superintendent requires. M.R. 215/2014 Qualifications of designated official 28 A person may not be the designated official under a restricted insurance agent licence unless (a) the person (i) is a director, officer or employee of the restricted licence holder if it is a body corporate, (ii) is a member of the partnership if the restricted licence holder is a partnership, or (iii) in a case where the restricted licence is issued to an individual in connection with a business — carried on by the individual — that is not a body corporate or a partnership, is that individual; and (b) the person has the qualifications, and satisfies the educational, training and other standards, established under section 396.1 of the Act. M.R. 215/2014 Replacement or incapacity of designated official 29(1) If a restricted licence holder's designated official ceases to be eligible under subclause 28(a)⁠(i) or (ii) or the designation of a person as the designated official under a restricted insurance agent licence is otherwise to be terminated, the restricted licence holder must, without delay, inform the superintendent and provide the superintendent with a designation of a replacement designated official. 29(2) If a restricted licence holder's designated official is unable to discharge the responsibilities expected of the designated official, the restricted licence holder must, without delay, inform the superintendent and provide the superintendent with a designation of a replacement designated official. M.R. 215/2014 Restricted licence holder's responsibilities 30(1) A restricted licence holder must (a) have reasonable and demonstrable policies and procedures to ensure that anyone who solicits, negotiates or transacts insurance on behalf of the restricted licence holder is knowledgeable, competent and suitable taking into account the class or type of insurance; (b) ensure that anyone who solicits, negotiates or transacts insurance on behalf of the restricted licence holder complies with the policies and procedures mentioned in clause (a); (c) upon receiving an application for insurance in relation to the restricted licence holder's goods or services, ensure (i) that the person applying is informed that the person is contracting with the insurer and not with the restricted licence holder, (ii) that the person applying is provided with a summary of (A) the terms, including limitations and restrictions, of the insurance, and (B) the circumstances under which the insurance commences or terminates and the procedures to follow in making a claim, and (iii) that the person applying is notified that, upon approval of the application, (A) the insurance policy and documentation describing the insurance coverage will be sent to the person, or (B) a certificate will be sent the person if the insurance applied for is group insurance; (d) ensure that, within 20 business days after a person's insurance coverage comes into force, the person applying is provided with (i) documentation evidencing the insurance coverage and stating the name of the insurer and how it may be contacted, (ii) documentation stating the information required by subclause (c)⁠(i), and (iii) the policy and documentation referred to in paragraph (c)⁠(iii)⁠(A) or the certificate referred to in paragraph (c)⁠(iii)⁠(B); and (e) ensure that, if the restricted licence holder or a qualified entity acting for it receives direct or indirect compensation, or a direct or indirect inducement or benefit, from the insurer for soliciting, negotiating or transacting the insurance, that fact is disclosed to any person considering obtaining the insurance. 30(2) A restricted licence holder must not (a) make its provision of goods or services conditional upon the consumer's purchase of insurance (i) through it or, if applicable, through a qualified entity acting for it, or (ii) from an insurer specified by it or, if applicable, specified by a qualified entity acting for it; (b) permit a person to solicit, negotiate or transact insurance on its behalf unless the person has been suitably trained to be able to knowledgeably solicit, negotiate or transact the class or type of insurance involved, as may be applicable; or (c) permit an employee of the restricted licence holder or a qualified entity to tell a consumer or potential consumer of the restricted licence holder's goods or services that (i) the consumer is required to purchase insurance in relation to the goods or services through the restricted licence holder or qualified entity or from an insurer specified by either of them, or (ii) should the consumer wish to purchase insurance in relation to the goods or services, the consumer may only purchase insurance through the restricted licence holder or qualified entity or from a specified insurer. 30(3) When a consumer purchases (a) rented-vehicle accidental injury or death insurance; (b) rented-vehicle contents insurance; or (c) rented-vehicle liability insurance; through a restricted licence holder or a qualified entity acting on its behalf, or from an insurer specified by either of them, the restricted licence holder must inform the consumer that the insurance may provide a duplication of coverage already provided by the vehicle renter's automobile insurance policy or by another source of coverage. M.R. 215/2014 Qualified entity's responsibilities 31(1) A qualified entity that acts on behalf of a restricted licence holder must (a) ensure that its employees who solicit, negotiate or transact insurance in relation to the restricted licence holder's goods or services comply with the policies and procedures mentioned in clause 30(1)⁠(a); (b) upon receiving an application for insurance in relation to the restricted licence holder's goods or services, ensure (i) that the person applying is informed that the person is contracting with the insurer and not with the restricted licence holder or the qualified entity, (ii) that the person applying is provided with a summary of (A) the terms, including limitations and restrictions, of the insurance, and (B) the circumstances under which the insurance commences or terminates and the procedures to follow in making a claim, and (iii) that the person applying is notified that, upon approval of the application, (A) the insurance policy and documentation describing the insurance coverage will be sent to the person, or (B) a certificate will be sent the person if the insurance applied for is group insurance; (c) ensure that, within 20 business days after a person's insurance coverage comes into force, the person applying is provided with (i) documentation evidencing the insurance coverage and stating the name of the insurer and how it may be contacted, (ii) documentation stating the information required by subclause (b)⁠(i), and (iii) the policy and documentation referred to in paragraph (b)⁠(iii)⁠(A) or the certificate referred to in paragraph (b)⁠(iii)⁠(B) is provided to the person applying within 20 days after the insurance coverage comes into force; and (d) ensure that, if the restricted licence holder or the qualified entity receives direct or indirect compensation, or a direct or indirect inducement or benefit, from the insurer for soliciting, negotiating or transacting the insurance, it discloses that fact to any person considering obtaining insurance from it. 31(2) A qualified entity acting on behalf of a restricted licence holder must not (a) permit any of its employees to solicit, negotiate or transact insurance in relation to the restricted licence holder's goods or services unless the employee has been suitably trained to be able to knowledgeably solicit, negotiate or transact the class or type of insurance involved, as may be applicable; or (b) permit any of its employees to tell a consumer or potential consumer of the restricted licence holder's goods or services that (i) the consumer is required to purchase insurance in relation to the goods or services through the qualified entity or restricted licence holder or from an insurer specified by either of them, or (ii) should the consumer wish to purchase insurance in relation to the goods or services, the consumer may only purchase insurance through the qualified entity or restricted licence holder or from a specified insurer. 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215/2014 Personal information received from consumer 32(1) A restricted licence holder must not (a) use personal information given by a consumer who applies for or obtains insurance coverage through the restricted licence holder, unless it is used for the purpose for which it is given and the consumer provides a consent that meets the requirements of subsection (2); or (b) release the information described in clause (a) to a person who is not an employee of the restricted licence holder, unless (i) the consumer provides a consent that meets the requirements of subsection (3), or (ii) subsection (4) applies in respect of the release of the information. 32(2) Before a consumer provides a consent for the purpose of clause (1)⁠(a), the restricted licence holder must inform the consumer that the consent is being given for the purpose of that clause. The consent provided must state the purpose for which the restricted licence holder may use the personal information covered by the consent. 32(3) Before a consumer provides a consent for the purpose of subclause (1)⁠(b)⁠(i), the restricted licence holder must inform the consumer that the consent is being given for the purpose of that subclause. The consent provided must state (a) the personal information that may be released; (b) to whom the personal information may be released; and (c) the purpose for which the released personal information may be used. 32(4) Clause (1)⁠(b) does not apply if the personal information (a) is released to a person as required by law; or (b) is released to the insurer on whose behalf the restricted licence holder is transacting insurance. 32(5) Subsections (1) to (4) apply, with necessary changes, to a qualified entity that acts on behalf of a restricted licence holder. M.R. 215/2014 Responsibilities of insurers 33(1) An insurer for whom a restricted licence holder solicits, negotiates or transacts insurance must (a) establish reasonable policies and procedures to ensure that anyone who solicits, negotiates or transacts insurance on behalf of the restricted licence holder is knowledgeable and competent taking into account the class or type of insurance; and (b) ensure that the policies and procedures are complied with. 33(2) To avoid doubt, subsection (1) applies whether the restricted licence holder solicits, negotiates or transacts insurance through its own employees or through a qualified entity. M.R. 215/2014 Non-application of subsection 371(1.1) of the Act to certain restricted licence holders 34 Subsection 371(1.1) of the Act does not apply to a person who holds a restricted insurance agent licence if the person is a member institution of the Canada Deposit Insurance Corporation or is a credit union incorporated under The Credit Unions and Caisses Populaires Act . M.R. 215/2014 Exemption of certain persons from application of subsection 369(1) of the Act 35(1) A person who is the designated official under a restricted insurance agent licence is exempt from the requirement to hold a licence under subsection 369(1) of the Act while the person is acting within the scope of the person's duties as designated official. 35(2) A person who is recorded as a person authorized by a restricted licence holder to solicit, negotiate or transact insurance on the restricted licence holder's behalf is exempt from the requirement to hold a licence under subsection 369(1) of the Act while the person is acting within the scope of the person's authorization. M.R. 215/2014 PART 3 GENERAL PROVISIONS Disclosure of premium allowances and fees 36 For the purpose of clause 113(2.1)⁠(b) of the Act, the person proposing to charge a premium allowance or fee (within the meaning of that clause) must, before placing the insurance or providing a service for which the premium allowance or fee is to be charged, disclose in writing — to the person to be charged — the total amount of the proposed premium allowance or fee. M.R. 215/2014