The Amendment Instrument to the Financial and Consumer Services Commission of New Brunswick Rule INS-001 introduces several modifications to the existing regulatory framework governing insurance intermediaries, particularly in licensing and obligations. The amendments refine definitions, clarify supervision requirements, and improve oversight procedures to align with industry standards and regulatory best practices. The definitions of general insurance agents at different levels have been revised to clarify their respective roles. A Level 1 General Insurance Agent is now defined as an individual authorized to act under supervision per Sections 20 to 25, while a Level 2 General Insurance Agent operates under oversight rather than direct supervision. A Level 3 General Insurance Agent is authorized not only to act as an agent but also to manage an insurance agency.

Additional amendments address licensing and educational qualifications. The licensing requirements have been updated to ensure consistency with the Canadian Free Trade Agreement by specifying that recognition of prior experience and qualifications should align with this agreement. A new qualification criterion has been introduced, allowing proof of the Chartered Insurance Professional (CIP) designation from the Insurance Institute of Canada to be considered for licensing. Changes in employment relationships also warrant updates, as agents, adjusters, or special insurance brokers who change firms must update their information, and agents switching sponsors must submit a new application with the associated fee.

Another key revision concerns the Superintendent’s discretionary power in waiving or modifying supervision requirements. Specifically, individuals who have been licensed in another jurisdiction within the past 24 months or those intending to apply in a jurisdiction with differing supervision requirements may receive exemptions if they can demonstrate sufficient employer oversight. The amendments also remove references to Level 2 General Insurance Agents in certain supervisory clauses, likely to streamline oversight responsibilities. Similarly, adjustments to the licensing framework for travel insurance specify that life or accident and sickness agents do not need a separate education program or a distinct travel insurance license but must declare their intent to sell travel insurance in their applications or renewals. Moreover, the definition of insurance products has been expanded to include pet insurance.

Travel agencies themselves must now ensure that individuals selling travel insurance possess the appropriate agent license. Oversight requirements have been updated to specify that training, supervision, and oversight must be commensurate with an agent’s qualifications, education, and experience.

The amendments also introduce new privacy and cybersecurity obligations for insurance intermediaries. These provisions require compliance with applicable privacy legislation, ensuring that personal information is collected and used only as permitted by law. Insurance intermediaries must notify the Superintendent of any cyberattack or privacy breach that necessitates notification under privacy regulations, including unauthorized access, collection, use, or disclosure of personal data.

New Brunswick (Proposed) March 5, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.