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Licence

A licence in the context of insurance refers to the official authorization granted by a provincial or territorial regulatory body that allows an individual or company to sell, advise on, or administer insurance products. Licensing ensures that insurance professionals meet educational, ethical, and legal standards required to operate in their jurisdiction. It protects consumers by ensuring that only qualified and accountable individuals provide insurance advice and services.

How It Works

In Canada, insurance is regulated at both the federal and provincial level, with the federal level focused on the financial stability of insurance companies and the provincial level handling the licensing of individuals. Each province and territory has its own insurance regulator that determines which insurance roles require a licence and what an individual must do to earn that licence. Those requirements typically include a course or program of study followed by one or more examinations. To obtain a licence to sell life insurance products in Canada, a person must take the Life Insurance Qualification Program (LLQP). In Ontario, FSRA licences and regulates Life and Health insurance agents who sell products including life, health and dental insurance, and these agents may represent one or more insurance companies. FSRA protects consumers by ensuring insurance companies and life and health agents are properly licensed to operate in Ontario and comply with the Ontario Insurance Act.

Example:

A Canadian who wants advice on a personal health and dental insurance plan typically works with a life and accident and sickness insurance agent. In Ontario, that agent must hold a current FSRA licence to legally sell health and dental coverage. Before trusting an agent or company, a consumer can confirm the licence is valid through their provincial regulator, since selling insurance without a licence is an offence.

What to Watch For:

It is an offence to act as an insurance agent or broker in a Canadian jurisdiction before a licence has been issued, so confirming a licence is active matters before you accept advice or buy a policy. A standard out-of-province application for an Ontario life and accident and sickness insurance licence results in a licence valid for two years. Under Ontario's "as of right" labour mobility rules, an eligible out-of-province agent can be deemed certified and conduct insurance business in Ontario for six months pending a full licence application.

Related Terms

Laser Eye Surgery Allowance

A laser eye surgery allowance is a vision care benefit included in some health insurance plans that provides reimbursement toward the cost of corrective laser procedures such as LASIK or PRK. These procedures permanently reshape the cornea to improve vision and reduce or eliminate the need for glasses or contact lenses. Because laser eye surgery is considered elective and not medically necessary, it is not covered by provincial health insurance plans, making this allowance a valuable feature in private coverage.

Premium

A premium is the amount of money an individual or organization pays to an insurance company in exchange for coverage under an insurance policy. It is the cost of maintaining protection against financial loss and ensures that the insurer can pay claims, manage risk, and cover administrative expenses. Premiums can be paid monthly, quarterly, semi-annually, or annually, depending on the policy and payment arrangement.

Plan Member

A plan member is an individual who is enrolled in and eligible to receive benefits under a group insurance plan. Typically, the plan member is an employee of a company or a member of an organization that sponsors the group policy. The plan member is covered for the benefits outlined in the plan - such as health, dental, life, and disability insurance - and may also extend coverage to eligible dependents, including a spouse or children.

Certificate of Insurance

A certificate of insurance is an official document issued by an insurance company that summarizes the key details of your coverage. It serves as proof that you are insured and outlines the essential terms of your policy, including the type of coverage, effective dates, benefit limits, exclusions, and any dependents or beneficiaries listed under the plan.

Contestability

Contestability refers to the period of time after an insurance policy is issued during which the insurer has the right to review and investigate the accuracy of the information provided in the application. If the insurer discovers that any information was omitted, misstated, or misrepresented during this period, it can deny a claim or void the policy.

Relevant Plans

Plans that relate to Licence

Alberta Blue Cross - Blue Assured - Basic

Alberta Blue Cross - Blue Assured - Basic

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Enhanced

Alberta Blue Cross - Blue Assured - Enhanced

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Enhanced+

Alberta Blue Cross - Blue Assured - Enhanced+

Can apply at anytime, at any age.

Alberta Blue Cross - Blue Assured - Premium

Alberta Blue Cross - Blue Assured - Premium

Can apply at anytime, at any age.

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