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CLHIA comments on the November 2015 position paper, Modernizing the New Brunswick Insurance Licensing Framework

Release Date: 01/21/2016
Staff Reference: Peter Goldthorpe

January 21, 2016

Financial and Consumer Services Commission
200-225 King Street
Fredericton, NB
E3B 1E1

Attention: Insurance Division

The Canadian Life and Health Insurance Association is pleased to provide comments on the Commission's November 2015 position paper, Modernizing the New Brunswick Insurance Licensing Framework. These comments reiterate and build on comments we made in response to the Commission's earlier 2013 discussion paper on these matters.

Established in 1894, CLHIA is a voluntary trade association that represents the collective interests of its member life and health insurers which, together, account for 99% of the life and health insurance in force in Canada. Our members contribute to the financial well-being of millions of Canadians by providing a wide range of financial security products, including over $4.2 trillion of life insurance coverage. During 2014 in New Brunswick, life and health insurers made benefit payments of $1.8 billion, or roughly $33 million a week, to policyholders and beneficiaries.

Item 1.1 Resident and Non-Resident Licences

For the reasons stated in our October 28, 2013 comments, we agree with the Commission's recommendation to eliminate the distinction between resident and non-resident licences and to recognize equivalent qualifications from other jurisdictions.

Item 3.3 Probationary Period for New Entrants

We understand this applies only to other-than-life agents. Significant improvements to the Life Licence Qualification Program for new life agents went into effect at the beginning of the year. These changes lend even greater weight to the reasons in our October 28, 2013 comments explaining why such a period is not needed for new life agents...