Life Insurance

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Life Insurance

The Life Insurance Councils of Saskatchewan ("LICS") operates under an authority delegated by the Director, Insurance and Real Estate Division to licence and regulate insurance agents and agencies in the province of Saskatchewan.

The Life Insurance Council is committed to a fair, ethical and professional industry which ensures that consumers receive responsible, trustworthy advice and service regarding insurance and related financial matters.

Below you will find the educational requirements and licence restrictions related to the licensing of each category of licence.

Definitions

According to The Insurance Act, an "insurance agent" means, subject to subsection (2), any person who for any compensation and through any medium does one or more of the following:

acts or aids in any manner in soliciting, negotiating, effecting or procuring the making of any contract of insurance or reinsurance or the continuance or renewal of a contract of insurance or reinsurance on behalf of an insurer, potential insured or insured, whether or not the person has agreements with insurers allowing the person to bind coverage and countersign insurance documents on behalf of insurers;
holds himself, herself or itself out as an insurance agent, broker or consultant;
provides consulting, advisory or administrative services with respect to the insurance or contracts of insurance that are described in section 1-14 or 1-15;
provides advice to a person with respect to a specific insurance policy, plan or program;
evaluates or managers insurance risks on behalf on an insured;
Not yet Proclaimed
transmits for another person an application for or a policy of insurance to or from an insurer;
retains as compensation any portion of a premium received by the person;
enrols individuals in prescribed contracts of insurance;
engages in any other prescribed activity;

According to The Insurance Act, “managing general agent” means an insurance agent that manages all or part of the business of an insurer and carries out specific activities on behalf of that insurer, including:

soliciting, negotiating or accepting applications for insurance from licensed insurance agents;
effecting and countersigning contracts of insurance;
accepting risks;
underwriting insurance contracts;
entering into written agency agreements with licensed insurance agents;
supervising and monitoring the activity of licensed insurance agents with whom it has entered into written agency agreements; and
undertaking any other prescribed duties or activities;

What Type of Life Insurance Licence Are You Applying For?

LICENCE LEVEL/CATEGORY

Life and/or Accident & Sickness Agent or Insurer Representative

LICENSING REQUIREMENTS

An individual applying for a Life and Accident & Sickness Agent licence must successfully complete:

a) The Life Licensing Qualifying Program (LLQP) course and examination

An individual applying for an Accident & Sickness Agent licence must successfully complete:

a) The Life Licensing Qualifying Program (LLQP) Accident and Sickness course and examination

LICENCE RESTRICTIONS

1. A licensee who is subject to New Agent Supervision shall not:

act in the transaction of insurance unless he or she is supervised by a licensee having at least three years experience as a licensed agent.

2. A licensee who is subject to New Agent Supervision shall:

within ten days of taking an application for insurance have a Supervision Certificate completed and signed by a licensee who is qualified to act in a supervisory capacity; and
if replaced a life insurance policy, attach a copy of the completed Life Insurance Replacement Declaration document to the Supervision Certificate.

3. A licensee shall not:

act as a supervisor unless he or she has:
1. at least three years experience as a licensed agent;
2. is not subject to New Agent Supervision; and
3. is knowledgeable about the product being sold by the supervised licensee; or
act in the transaction of or supervision of segregated funds transactions unless he or she has passed an investment funds course approved by council.

4. A licensee shall:

prior to replacing an existing life insurance policy, present and review with the consumer a fully completed Life Insurance Replacement Declarations document that has been approved by LICS; and
provide a copy of the Life Insurance Replacement Declaration document to the consumer and retain a copy in his or her client's file.

7-3 (2) An individual applying for a licence, who has not held a life and/or accident and sickness agent licence in any jurisdiction in Canada during the past two consecutive years, will be considered a new applicant.

(3) For a new applicant applying for a life and/or accident and sickness agent licence, only courses completed in the year prior to their application for licence are considered valid.

(4) An individual licensed BEFORE January 1, 2020 is subject to New Agent Supervision until he or she completes two years as a licensee.

(5) An individual licensed AFTER January 1, 2020 is subject to New Agent Supervision until he or she:

1. completes a minimum of 50 placed and inforce policies;
2. completes a minimum of one year as a licensee; and
3. provides evidence of completion to LICS.

Click HERE to apply.

LICENCE LEVEL/CATEGORY

Third Party Administrator (TPA) Designated Representative

LICENCE RESTRICTIONS

A Third Party Administrator Designated Representative shall not:

act as an agent for any type of insurance product.

LICENSING REQUIREMENTS

1. An agency must:

1. provide evidence that the agency is registered with the Corporate Registry of the Information Services Corporation; and
2. maintain that the registrations for as long as they hold an active licence.

2. Unless exempt from the requirement to register with the Corporate Registry of the Information Services Corporation, a Restricted Insurance Agent must:

1. provide evidence that the Restricted Insurance Agent is registered with the Corporate Registry of the Information Services Corporation; and
2. maintain that registration for as long as they hold an active licence.

3. An agency of Restricted Insurance Agent must appoint an individual to be the designated representative.

4. Failure to appoint and maintain a designated representative shall result in the suspension of the licence of the business.

A designated representative must be:

for life and/or accident and sickness agencies, an individual who holds an active life and/or accident and sickness licence; and
for Restricted Insurance Agents, an individual who is responsible for receiving notices and other documents, pursuant to the Act, on behalf of the Restricted Insurance Agent.

Click HERE to apply.

If the insurance products being offered exceed what is defined below, the applicant would require a licence other than RIA.

Classes of Insurance

Creditor’s Disability Insurance	means a group insurance policy, or a creditor’s group insurance policy, that will pay all or part of the amount of a debt of a debtor to the creditor insured under the policy, in the event of bodily injury to, or an illness or disability of: (a) if the debtor is an individual, the debtor or the spouse of the debtor; (b) an individual who is a guarantor of all or part of the debt; (c) if the debtor is a corporation, any director or officer of the corporation; or (d) if the debtor is an entity other than an individual or a corporation, an individual who is essential to the ability of the debtor to meet the debtor’s financial obligations.
Creditor’s Life Insurance	means a group insurance policy, or a creditor’s group insurance policy, that will pay to a creditor insured under the policy all or part of the amount of a debt of a debtor or, if the debt is with respect to a small business or a farm, fishery or ranch, all or part of the amount of the credit limit of a line of credit, in the event of the death of: (a) if the debtor is an individual, the debtor or the spouse of the debtor; (b) an individual who is a guarantor of all or part of the debt; (c) if the debtor is a corporation, any director or officer of the corporation; or (d) if the debtor is an entity other than an individual or a corporation, an individual who is essential to the ability of the debtor to meet the debtor’s financial obligations.
Creditor’s Loss of Employment Insurance	means a policy that will pay, without any individual assessment of risk, all or part of the amount of a debt of a debtor to the creditor insured under the policy in the event that: (a) if the debtor is an individual, the debtor becomes involuntarily unemployed; or (b) an individual who is a guarantor of all or part of the debt becomes involuntarily unemployed
Funeral Expense Insurance	means insurance that is within the class of life insurance and under which the insurer undertakes to pay a maximum of $25,000 for funeral services or cremation services, as those terms are defined in The Funeral and Cremation Services Act.
Personal Life Insurance	means a group insurance policy that provides insurance to an individual: (a) where the insurer undertakes to pay one or more sums of money in the event of bodily injury to or the death of that individual caused by an accident; or (b) where the insurer undertakes to pay a certain sum for each day that the individual is hospitalized in the event of: (i) bodily injury to that individual caused by an accident; or (ii) an illness or disability of that individual.

RIA Entity Types

Automobile Dealership	must be licensed with Saskatchewan Financial and Consumer Affairs Authority of Saskatchewan as an automobile dealership
Construction Equipment Dealership	Regulated through the Saskatchewan Agricultural Implements Act.
Crematorium	means a crematorium as defined in The Funeral and Cremation Services Act that is licensed pursuant to that Act. Regulated by the Funeral & Cremation Council of Saskatchewan.
Customs Brokerage
Deposit‐Taking Institution	means: (a) a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada); (b) a loan corporation or trust corporation incorporated by or pursuant to an Act, an Act of the Parliament of Canada or an Act of the Legislature of another province or a territory of Canada; (c) a credit union incorporated by or pursuant to an Act, an Act of the Parliament of Canada or an Act of the Legislature of another province or a territory of Canada; or (d) any other prescribed entity.
Farm Implement Dealership	must be licensed in Saskatchewan under The Agricultural Equipment Dealerships Act.
Financing Corporation	means a financing corporation, as defined in The Trust and Loan Corporations Act, 1997, that holds a valid licence issued pursuant to that Act but does not include a person carrying on the business of advancing money if the money being advanced: (a) is in an amount of $1,500 or less; (b) is for a term of 62 days or less; and (c) is in exchange for a post‑dated cheque, a pre‑authorized debit or a future payment of a similar nature, but not for any guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, a line of credit or a credit card. Regulated by FCAA.
Funeral Home	means a funeral home as defined in The Funeral and Cremation Services Act that is licensed pursuant to that Act. Regulated by the Funeral & Cremation Council of Saskatchewan.
Marine Dealership
Mortgage Broker	as defined in The Mortgage Brokerages and Mortgage Administrators Act. Regulated by FCAA.
Recreational Vehicle Dealership

LICENSING REQUIREMENTS

1. An MGA must:

provide evidence that the MGA is registered with the Corporate Registry of the Information Services Corporation; and
maintain that registration for as long as they hold and active licence.

2. An MGA must appoint an individual to be the designated representative.

3. Failure to appoint and maintain a designated representative shall result in the suspension of the MGA's licence.

4. An MGA must have in place a Compliance Program approved by LICS.

Click HERE to apply.

LICENCE LEVEL/CATEGORY

Third Party Administrator (TPA)

LICENSING REQUIREMENTS

1. A TPA must:

1. provide evidence that the TPA is registered with the Corporate Registry of the Information Services Corporation; and
2. maintain that registration for as long as they hold an active licence.

2. A TPA must appoint an individual to act as the designated representative.

3. Failure to appoint and maintain a designated representative shall result in the suspension of the TPA licence.

4. A TPA must have a written agreement with an insurer acceptable to LICS, setting out the specific responsibilities of the TPA.

5. A TPA must establish reasonable procedures to ensure the TPA's employees are properly trained and knowledgeable about the insurance being administered on behalf of the insurer and ensure the procedures established are being used.

A designated representative must be licensed.

Click HERE to apply.

Application for Licence

Persons applying for a licence in one of the life or accident and sickness categories set out in Schedule A, Table 1-1 shall provide to LICS:

(a) proof of having met the licence requirements as set out in sections 7-3, 7-4, 7-5, or 7-6;

(b) proof of having met the financial security requirement (errors and omissions insurance and/or bond), pursuant to sections 5-10 or 5-23 of the regulations;

(d) payment of the required fee for the category of licence as set out in Schedule A;

(e) if the person is an MGA or TPA, copies of all currently in force or draft agency contracts, pursuant to clauses 5-11 (g) and 5-11 (h) of the Act; and

(f) if the person is a restricted insurance agent, copies of all currently in force or draft agency contracts, pursuant to clause 5-70(2)(b) of the Act.

Life Insurance Licencing Fees

- A business or individual licence ($125):
  - for life and accident and sickness insurance;
  - for accident and sickness insurance;
- An individual licence ($125):
  - for an insurer's representative; and
  - for a designated representative of a third party administrator;
- A business licence ($125):
  - for a managing general agent; and
  - for a third party administrator.

Number of Employees of Restricted Insurance Agent	Fees
1 to 4	$150
5 to 10	$225
11 to 15	$375
16 to 20	$500
21 to 99	$700
100 to 249	$1,500
250 to 499	$3,000
500 or more	$5,500

A licensee who fails to comply with the requirements outlined in section 8-1 on or before the annual reporting date shall be assessed, in addition to the annual fee, a late filing fee equal to 50% of the annual fee.

A refund of an annual fee shall not be made once a licence has been issued.

An administration fee of $50 shall be retained when an application for a licence has been denied.

(1) An administration fee of $50 shall be charged for:

(a) a reinstatement of a licence; and

(b) discontinuation of a licence application after processing by ICS has begun.

(2) Subject to subsection 5(3), an administration fee of $25 shall be charged for:

(a) a certificate of licence status;

(b) a non-resident endorsement used to apply for licensing in another jurisdiction;

(d) a duplicate licence;

(e) cheques returned to ICS;

(f) deletion or addition of licence class to an existing licence;

(g) a change of licence recommendation; and

(h) changes to a licence that may be required to ensure compliance with the requirements of the Act, regulations and or an insurance council's bylaw.

(3) In cases where the administration fee in clauses 5(2) (g) or 5(2) (h) involves all licensees in an agency or adjusting firm, council may, at its sole discretion, set a flat rate for completion of the transactions. The total flat rate fee cannot exceed the per transaction fee amount generated by applying clauses 5(2)(g) or 5(2)(h).

An administration fee of $250 will be charged for electronic copies of the Insurance Register.

LLQP Information

Completion of the Life Licence Qualification Program ("LLQP") and passing the LLQP exam is required if you or your organization want to sell life insurance products in Saskatchewan.

The providers identified below offer their course through a distance learning format. Details about their respective courses can be obtained by contacting the organizations directly.

Life Licencing Qualification Program (LLQP)

Complete an approved LLQP certification course from the LLQP Course Listing. Upon registration, you will receive a Canadian Insurance Participant Registry number (CIPR), which is used to sign into Durham College's LLQP exam registration system.
Once you have obtained certification to write the LLQP, proceed to register for the exam through Durham College at https://llqp.durhamcollege.ca/.
After registering through Durham College, you will receive confirmation of your exam schedule.

You must have a Canadian Insurance Participant Registry (CIPR) number, which is provided by your LLQP certification Course Provider.
You must provide confirmation of successful completion of the LLQP certification course through an approved course provider within the last 12 months. If your course certification expires, you will no longer be certified to write any exam module and will need to re-certify by completing an approved LLQP certification course.
You must present valid government-issued ID, such as a driver's license, passport, or other identification containing the applicant's residential address.

Life Licence Qualification Program (LLQP) examination (exam) integrity is fundamental to the Canadian Insurance Services Regulatory Organizations (CISRO)’s consumer protection mission in the Life Insurance Industry. Standardization of examination procedures is a way to support exam integrity, ensure fairness in testing, and reinforce the core values of CISRO.

Online exam administration procedures

➢ Examinees are responsible for being present during their scheduled exam day and time.

➢ Examinees shall have their login credential to access the system and present an officially recognized ID card with photo to a live proctor upon successful login.

➢ Examinees are required to be equipped with appropriate, properly functioning technology such as a computer with one display or monitor, webcam, microphone, and stable internet connection. Exam space must be walled with a closed door, well-lit and free from any disruptions. The workstation shall be clean and clear of all materials. A shared office or public space shall not be accepted.

➢ Examinees’ surroundings shall be monitored before and during the exam upon request of the live proctor.

➢ Examinees shall only use authorized materials during the examination. Use of cellphones, programmable calculators, personal computers, smart watches, cameras, and other unauthorized electronic devices is strictly prohibited.

➢ Examinees shall be recorded at all times during the exam session (face, voice and physical room where they sit to write the exam). The video will be viewed by authorized personnel and for audit purposes only.

➢ Examinee shall comply with all rules specified before, during and after the examination
session.

Exam Retake policy

➢ An examinee who fails an exam is entitled to write three supplemental exams (three retakes), provided that the minimum qualifications (training) are valid. The validity period of this training is twelve months from the date on which it was successfully completed.

➢ A 24-hour waiting period is mandatory between attempts.

➢ An examinee who fails the 3rd retake (4th attempt) has to wait for a period of one year as of the date of the failed fourth attempt to register for the initial exam. They also have to retake pre-requisite courses in order to have their minimum qualifications valid upon initial exam registration.

➢ An examinee who has failed an exam and who does not register for the supplemental exam (retake) within a period of one year as of the date they failed the said exam must complete the minimum qualifications before registering for the initial exam.

Exception to Exam Retake Policy effective April 1, 2024

➢ An examinee who fails the 1st exam attempt before April 1, 2024, is entitled to write four supplemental exams (4 retakes).

➢ An examinee who fails the 1st retake (2nd attempt) may without a waiting period make a subsequent attempt.

➢ An examinee who fails the 2nd retake (3rd attempt) has to wait for a period of three months before a subsequent attempt.

➢ An examinee who fails the 3rd retake (4th attempt) has to wait for an additional period of three months before a subsequent attempt.

➢ An examinee who fails the 4th retake (5th attempt) has to wait for a period of one year and recertify through the prerequisite LLQP course before a subsequent attempt.

Examinee misconduct and rule violations
Any practice occurring before, during or after the exam determined to compromise the security and reliability of the examination may result in termination of the exam and a failing grade. CISRO takes a serious view of all misconduct and determines appropriate consequences for examinees who are found guilty of exam integrity breaches.

Consequences of LLQP exam breaches and outcomes

➢ Information on the breach/violation and its consequences will remain on the examinee’s record at RO in accordance with applicable law and in CIPR.

➢ Based on the level of severity, careful observation or/and subsequent statistical analysis of the examinee’s responses, an LLQP exam breach may result in one or more of the following consequences:

A zero on the exam to which the misconduct or rule violation refers and a notation of an attempt logged on the examinee’s file.
Re-write a new form of the original module in person, on a date and time specified by the Life Insurance Council.
Re-write new forms of other modules in person, whether exam violation is detected in these modules or not.
Suspension from the LLQP exam process for a period of two or three years (from the date of the integrity breach) based on the level of severity of the exam breach.
Permanent removal from the LLQP exam process and denial of certification.