Legislation

The Insurance Act provides the legislative framework for the regulation of agents, brokers and insurance companies operating in Saskatchewan.

The Superintendent has delegated authority over agents, brokers and adjusters to the General Insurance Council, the Life Insurance Council and the Insurance Council of Saskatchewan (Councils). The Councils, on behalf of the Superintendent, are now responsible for:

• Licencing
• establishing bylaws
• conducting investigations and handling complaints
• conducting hearings on agent and adjuster licensing and disciplinary matters.

Supervision Certificate

The Supervision Certificate has two distinct purposes:

• its primary purpose is to ensure that sales made by new, inexperienced licensees are reviewed by a more experienced licensee - to confirm whether the product and amount sold are appropriate to the client's situation and needs; and
• its secondary purpose is as a teaching tool to help develop the knowledge of new licensees through their first 50 placed and inforce policies as a Life including Accident & Sickness licensee. 

Expectations of the Supervised Licensee
As outlined in Bylaw 4-1(2)(e), licensees are required to "reasonably ascertain, through prudent fact gathering, a consumer's insurance needs" when making a sale. Further, as outlined in Bylaw 7-3, new licensees are subject to specific supervision on a minimum of their first 50 sales. The specific supervision includes the completion of this Supervision Certificate on those 50 sales.

The supervised licensee must complete the form fully and accurately and provide the supervising licensee with all pertinent information required for the supervising licensee to review the sale and assess whether the product and amount sold are appropriate to the client's situation and needs.

When the supervised licensee signs the Supervision Certificate, he or she is attesting to the fact that the information is accurate, and that they have provided to the supervising licensee a copy of all material used with the named applicant/insured.

Expectations of the Supervising Licensee
As outlined above, the Supervision Certificate has two distinct purposes. Based on that, the role of the supervising licensee also has two distinct parts:

• the primary role of the supervising licensee is to verify that the product and amount sold are appropriate to the client's situation and needs; and
• the secondary role of the supervising licensee is to identify learning opportunities for the supervised licensee so that they can fully develop an ability to assess and meet the needs of consumers.

The supervising licensee should ensure that they receive all of the information they need from the supervised licensee in order to review the sale and assess whether the product and amount sold are appropriate to the client's situation and needs.

When the supervising licensee signs the Supervision Certificate, he or she is attesting to the fact that they have reviewed the material provided by the supervised licensee, and that the insurance applied for is appropriate to the needs and circumstances of the applicant/insured.

The supervising licensee should also take the opportunity to dialogue with the supervised licensee to fully understand the process they completed, and their reasons for the product/amount that were recommended to the applicant/insured. That dialogue should also cover any possible areas for development that the supervising licensee has identified during the review process.

Supervision Certificate

Life insurance Replacement Declaration Form (LIRD)

Life Insurance Bylaws Bylaw 7-3(5)

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

(a) completes a minimum of 50 placed and inforce policies;

(b) completes a minimum of one year as a licensee; and

(c) provides evidence of completion to LlCS.*