You are here: Home Product Sales NEW 2010 Etch Requirements

 

 

Effective January 31, 2010, all dealers and sales people who sell "etching" programs (categorized as anti-theft insurance) must be licensed by the Insurance Council of BC in order to sell the product.

 

BASICS

WHO is the Financial Institutions Commission and what is their mandate?

The regulatory agency of the provincial Ministry of Finance. FICOM that is responsible for administering 10 statutes that regulate the pension, financial services and real estate sectors in British Columbia.

 

WHO is the Insurance Council of BC and what is their mandate?

They provide a level of protection to the public regarding the sale of insurance products and services under the framework provided by the Act. Their role is to provide:  Education and Experience; Licensing; and Discipline.

 

WHO is the Motor Vehicle Sales Authority of BC and what is their mandate?

They are an administrative authority delegated by the provincial government to administer and enforce the Motor Dealer Act and its regulations, the Business Practices and Consumer Protection Act as it relates to the sale of motor vehicles, and other related statutes.

 

 

HISTORY

WHY was this new policy adapted by the Insurance Council of BC?  Following an investigation, a cease and desist order was issued by the Financial Institutions Commission (FICOM) in April 2009 against a dealership that was selling the etching program as a mandatory add-on to vehicle sales.  FICOM determined that the motor vehicle anti-theft product programs/products/packages are insurance products, deeming they could only be sold by licensed insurance brokers.  Based on its understanding of the motor vehicle anti-theft products being offered and the training provided, the Insurance Council of BC determined they were prepared to issue a license to the dealers and sales people selling these products, that would be restricted to the sale of the motor vehicle anti-theft offerings.

 

 

THE POLICY

The policy of the Insurance Council of BC governing this issue clearly states:

1)The product is categorized as insurance and anyone selling it must be licensed;

2) There must be full disclosure of all component parts of the end price: insurance premium, dealer service charges and any other add-ons;

3) The customer must be advised in writing that the anti-theft package is OPTIONAL

Note: Further inquiries are being pursued with the Insurance Council of BC to address the requirement to disclose the cost of this product to the consumer.

 

 

LICENSING REQUIREMENTS

For those dealerships selling anti-theft insurance the following are required:

-Each dealship must have a corporate license.  Cost is $225.00

-Each individual selling the product must have a restricted license.  Cost per individual is $225.00

-Each dealership must name a "Nominee" - typically the Business Manager - who is the primary contact for the Inurance Council of BC (questions, complaints, inquiries, notifying the office of personnel changes) and to ensure that the dealership is compliant with the rules and regulations.  This Nominee will be issued a Level 3 license.  Cost per Nominee is $225.00

 

Remember, you must submit a Training Letter with your remittance, identifying that your staff have been trained to sell this product.  Refer to your product vendor for the letter.

Note:  All individuals other than the Nominee will be issued a restricted Level 1 Salesperson license

 

 

LICENSE RESPONSIBILITY

As a licensee, the dealership has a number of responsibilities under the Financial Institutions Act and Council Rules.  The Insurance Council of BC recommends that you download a copy of these documents to assist you in understanding your responsibilities:

Insurance Council of BC Council Rules

Insurance Council of BC Code of Conduct

Additional reference:  Statute administered by FICOM: Financial Institutions Act

 

 

WAIVED LICENSING REQUIREMENTS

The Insurance Council of BC has waived the following prerequisites for a normal "brokers" license, ONLY for those issued a restricted license as described above:

-requirement to hold errors and omissions insurance;

-requirement for the nominee to attend a Level 3 seminar;

-requirement for all applicants to submit a criminal record check;

-requirement to complete Council's continuing education program; and

-requirement to meet Council's qualifying education.

 

 

 

Disclaimer: Although Profit Drivers has made every effort to ensure that the information presented in this site is accurate and up to date, every consumer assumes ultimate responsibility for ensuring that they operate according to the current policies, procedures and legislation applicble to their jurisdiction.