Special Brokers

Special Brokers

A Special Broker is a licensed insurance agent that is authorized to broker insurance from unlicensed insurers in certain circumstances. The requirements to carry on business in Saskatchewan as a Special Broker are outlined in Part VI Division 3 of The Insurance Act (the “Act”) and Part 6 Division 2 of The Insurance Regulations (the “Regulations”). 

Who Can Apply to Become a Special Broker?

In order to act as a Special Broker in Saskatchewan, you must apply for an endorsement. In order to qualify for an endorsement, you must:

• have a valid Saskatchewan level 3 insurance agent licence as set out in the bylaws of the General Insurance Council of Saskatchewan; and
• provide and maintain financial security in the amount of $25,000 or in any greater amount that Superintendent may order, in one of the following forms: 
  • letter of credit; 
  • bond; 
  • any other form satisfactory to the Superintendent. 

Documents You Will Require to Complete Application:

In order to review your submission, we require that you submit electronic copies of several important documents: 

1. A copy of the document that you will provide to the insured in accordance with 6-7 of the Act. 
2. A copy of your valid Saskatchewan Level 3 insurance agent licence and any terms or conditions attached therein.
3. A copy of your bond or financial security document. 
4. Name of your attorney for service in Saskatchewan.
5. A business plan which outlines your proposed unlicensed insurance activities and projections of the amount of unlicensed insurance you plan to effect. 

Please note that depending on the information submitted, the Superintendent of Insurance may require additional information in order to approve your application. 

The application must be accompanied by a one-time fee of $500.

Please contact our office if you have any questions on these requirements (financial.institutions@gov.sk.ca or 306-787-6700).  

Once our office has received all necessary information, it can take up to 20 business days to approve your application. 

Pursuant to Section 10-11 of the Act, the Superintendent may refuse an application. Before refusing an application, the Superintendent will set out in writing their reason for refusal. An applicant may inform our office that they wish to request a hearing or set forth their own written representations to the Superintendent.  

Compliance Requirements

Special Brokers are required to make monthly reports detailing the unlicensed insurance they have brokered each month. For those months where no unlicensed insurance has been brokered, the Special Broker is required to submit a “nil” report.
This report is accompanied by tax payable equivalent to 10% of the total of the premiums paid or payable to unlicensed insurers.

The application form, the monthly reports, and updates to your information, are made using FCAA’s “Registration and Licensing System” (RLS), a secure online system. 

Launch RLS to do the following:

• File an application for a special broker endorsement;
• File an annual return; and
• File an unlicensed premium tax submission.

 

The following documents provide guidance and instruction on how to use RLS and make the above submissions:

• RLS User Guide – Special Broker Endorsement
• Read the RLS Basics Guide
• RLS Basics – Adding a Delegated User