We’ve made a few updates to material on the Compliance section of the BridgForce website. Please review these and make adjustments to your practice as needed.
As discussed at several of the recent BridgeForce meetings, carriers and Ontario’s insurance regulator FSCO are actively assessing advisor compliance with these compliance obligations.
Two CLHIA Reference Documents have been updated in consultation with Advocis, CAILBA and IFB
The Approach: Serving the client through needs-based sales practices
- Originally published in 2007, The Approach addresses the principle that the product recommended is suitable to the customer’s needs by setting out the elements of needs-based sales practices, including detailed information on needs analysis.
- What’s new? A new step has been added to the sales process. Following the Recommendation and Advice step, advisors need to provide a “reason-why” letter: a written explanation of the recommendation. Four sample letters have been developed that you could use. More information on this step, including FAQ, can be found in the explanatory notes section, #25-30. Our chart on the steps in the needs based sales process has been updated to include this new step and template letters.
IVIC Suitability: Needs-based sales practices
- This Reference Document describes industry practices intended to clarify the relation of the features of an Individual Variable Insurance Contract (IVIC) to the needs of a customer, including conducting a needs analysis.
- What’s new? Language has been added to reinforce the need for a “reason-why” letter.
Hold out appropriately
It’s important to represent yourself or ‘hold out’ to the public appropriately. FSCO has provided some guidance for advisors, whether a corporation, a partnership or an individual, about holding out correctly. The BridgeForce Code of conduct also addresses holding out.
Frequently Asked Questions
To help brokers quickly find relevant material on specific topics within the Compliance section of our website, we’ve created a new feature called Frequently Asked Questions. Check out the Compliance section of our site for specific information on how to comply with Carrier and FSCO compliance audits, what should be included in your compliance regime, and more.