July 2009

July 2009

Comments requested regarding the Proposed Regime for the regulation and licensing of Restricted Insurance Agents

July, 2009 – For the past several years the Life Insurance Council of Saskatchewan (the "LIC") has been preparing to regulate the sale of previously unregulated insurance products that fall under the authority of the Saskatchewan Insurance Act.

In April of 2007, the Supreme Court of Canada rendered a decision confirming that federally regulated institutions are subject to provincial law with respect to insurance related activities. 

As a result of the clarification provided by this court decision the LIC sent notice to stakeholders in December 2007 that it intended to proceed with regulating the sale of “incidental” insurance products.  These products were defined as “insurance products that are sold incidental to another product.”

In July of 2008, the LIC provided a proposed a model for regulating the selling of incidental insurance products to stakeholders and requested their feedback.

The LIC subsequently received feedback from a number of stakeholder organizations, many of whom advocated a harmonized national approach.  Saskatchewan regulatory model as closely as possible with the regulatory model that already exists in Alberta.

The LIC and the General Insurance Council of Saskatchewan (the "GIC"), which will be responsible for specific parts of the proposed regulatory structure, along with the Superintendent of Insurance have now completed a draft of the required regulations and bylaws. The regulations attempt to harmonize, as much as possible, with the regulatory regime already in place to regulate the sale of incidental insurance products in Alberta.

The proposed regime consists of three draft documents: the Draft Amendment to the Saskatchewan Insurance Regulations, the Draft Specification of the Superintendent of Insurance; and the Draft Bylaws of the Life and General Insurance Councils of Saskatchewan.

If you cannot access these documents, please call (306) 787-6700 or email fid@gov.sk.ca to request a paper copy.

Please provide your comments by August 21, 2009 to both:

Insurance Councils of Saskatchewan        Saskatchewan Financial Services Commission  
310-2631-28th Avenue                          Suite 601-1919 Saskatchewan Drive
Regina, SK  S4S 6X3                              Regina, SK  S4P 4H2
 
Attn: John Waugh                                   Attn: Elaine Thompson
 
All comments received will be subject to the provisions of The Freedom of Information and Protection of Privacy Act (Saskatchewan).

• Draft Specifications
• Proposed Draft of The Saskatchewan Insurance Amendment Regulations, 2009
• Proposed Draft of Council Bylaws
• General Insurance Council of Saskatchewan Bylaw 2