Holding a valid licence from the provincial regulator is a pre-condition for acting as a life insurance agent. The core prohibition is absolute: no person may act as a life insurance agent or solicit insurance from the public without a valid licence.
Unlicensed activity includes:
- Conducting an insurance needs assessment and recommending a product
- Accepting an insurance application from a client
- Collecting premiums on behalf of an insurer
- Holding out as a life insurance agent in any advertising or communication
The prohibition extends to supervision: a licensed agent cannot delegate licensed activities to an unlicensed employee or associate and simply review the result. The licensed agent must personally perform the activities that require a licence.
Licence conditions vary by province but typically require:
- LLQP examination completion
- Errors and omissions (E&O) insurance in force at a minimum prescribed limit
- Background check clearance
- Affiliation with a licensed insurer or managing general agent
Common mistake: believing a licence from one province automatically authorizes activity in another. Provincial licences authorize activity in the issuing province. An agent soliciting in multiple provinces typically requires a licence or recognition in each. CISRO's harmonized LLQP framework facilitates this but does not create automatic multi-provincial authority.
Recall: Name three activities that constitute unlicensed activity. What conditions does a provincial licence typically impose at issuance?