Licensing Changes for First Quarter 2010

 

Bulletin

No. G-02/10
 
– General

The Financial Services Commission of Ontario (FSCO) is releasing the following information about licensing changes during the first quarter, January 1 to March 31, 2010:

 

  • statistics on the disposition of applications for new licenses and renewals,  
  • applications for licence changes and cancellations, and
  • statistics on other licensing and related services provided by FSCO. 

These changes relate to individuals and organizations in the financial services sectors under FSCO's jurisdiction: insurance, credit unions/caisses populaires, co-operatives, trust and loan companies, and mortgage brokering.  General information on pensions, another financial services sector under FSCO's jurisdiction, can be obtained by visiting FSCO's website at www.fsco.gov.on.ca.

 

 

INSURANCE COMPANIES

(Listed by effective date)

Amalgamation:

 

Effective Date

Germania Farmers’ Mutual Fire Insurance Company

Culross Mutual Insurance Company           

                                                  

    • On January 1, 2010, Germania Farmers’ Mutual Fire Insurance Company and Culross Mutual Insurance Company amalgamated their operations, and now operate as Germania Mutual Insurance Company.  The licences for the former Germania Farmers’ Mutual Fire Insurance Company and the former Culross Mutual Insurance Company were cancelled effective January 1, 2010.

January 1, 2010

Licence Cancellations:

 

The licences of the following insurers were cancelled after satisfactory arrangements were made for any insurance liabilities.

 

Cancellation Date

 Forethought Life Insurance Company

 

    • The company has discontinued its operations in Canada.  The company’s insurance business was transferred to Unity Life of Canada effective December 31, 2008.

January 15, 2010

Licence Amendments:

 

Effective Date

Intact Insurance Company

 

    • Restriction deleted:  "Limited to the business of reinsurance." from its legal expenses class.

January 25, 2010

Poultry Insurance Exchange Reciprocal of Canada   

                       

    • The reciprocal is licensed for property (restricted to business interruption loss due to salmonella, mycoplasma synoviae and mycoplasma gallisepticum).  Avian influenza has now been added to the restriction.

February 8, 2010

State Farm Fire and Casualty Company

 

    • Class of insurance added: marine.

March 26, 2010

Hannover Ruckversicherung AG              

     

    • Class of insurance added: marine (limited to the business of reinsurance).

March 29, 2010

National Liability & Fire Insurance Company 

                                           

    • Restriction deleted: "limited to the business of reinsurance" from its property class.

 

March 31, 2010

LICENSING STATISTICS

 

 

The statistics below provide information on FSCO's review of common applications for insurance licences and other related services.  All of the provided figures represent the quantity of applications that were received, issued or pending, unless otherwise indicated.

Individual Variable Insurance Contracts (IVICs)

 

January 1, 2010 to March 31, 2010

Received

Issued

Pending

6

(3 pending from the 4th  quarter)

 

8

1

IVIC information folders issued by life insurance companies are reviewed for compliance with the requirements under the Insurance Act and related Ontario Regulation 132/97.  All of the receipts were issued within the 30 day time period specified in Ontario Regulation 132/97.

 

Please note that updated IVIC information folders must be filed at least annually, even in the absence of a material change, in accordance with Ontario Regulation 132/97.

Insurance Agents and Adjusters

 

January 1, 2010 to March 31, 2010

Application Type

New Licences

Renewal Licences

Individual Agent Licences*

1,448

4,060

Corporate Agent Licences

78

349

Individual Adjuster Licences

42

34

 

*FSCO completed its review and issued individual agent licences in five days or less for 99 per cent of applications received.

Credit Unions/Caisses Populaires

 

January 1, 2010 to March 31, 2010

Application Type

Pending as of Dec. 31, 2009

Received

Complete on Receipt

Issued

Closed (incomplete or withdrawn)

Pending as of Mar. 31, 2010

Average Days to Issue

Certificate of Status

0

3

3

3

0

0

2

Offering Statements

0

1

0

1

0

0

34

Articles of Amendment

0

1

1

1

0

0

24

Amalgamations

0

0

0

0

0

0

-

Orders

0

1

0

1

0

0

16

Certified Copies of Documents

0

2

2

2

0

0

3

Co-operatives

 

January 1, 2010 to March 31, 2010

Application Type

Pending as of Dec. 31, 2009

Received

Complete on Receipt

Issued

Closed (incomplete or withdrawn)

Pending as of Mar. 31, 2010

Average Days to Issue

Certificates
of Status

0

34

34

34

0

0

2

Offering Statements

4

5

0

4

0

5

40

Articles of Amendment

2

1

0

1

0

2

12

Articles of Continuance

0

0

0

0

0

0

0

Articles of Dissolution

0

1

0

0

0

1

-

Articles of Incorporation

1

14

4

10

1

4

18

Certified Copies of Documents

0

0

0

0

0

0

0

Cancellation Order

0

0

0

0

0

0

0

Material Change

0

0

0

0

0

0

0

Extra Provincial

0

0

0

0

0

0

0

Persons or Businesses Engaged in Mortgage Brokering

 

January 1, 2010 to March 31, 2010

Licence Type

Appli-cation
Type

Pending as of Dec. 31, 2009

Received

Complete on Receipt

Issued


With-drawn

Pending as of Mar. 31, 2010

Average Days to Issue

Mortgage Brokerage1

new

7

27

0

27

6

21.13

Mortgage Adminis-trator1

new

2

2

0

0

1

3

-

Principal
Broker2

new

0

4

4

4

N/A

0

2

renewal

0

1,118

1,118

1,118

0

1

Mortgage Broker2

new

0

5

5

5

N/A

0

2

renewal

0

1,314

1,314

1,314

0

1

Mortgage Agent2

new

0

771

771

735

N/A

36

2

renewal

0

6,868

6,868

6,868

0

1

 

1Although mortgage administrators have perpetual licences, they were required to pay a regulatory fee by March 31, 2010.   As of March 31st, 72 of the 83 licensed mortgage administrators paid the regulatory fee, 11 mortgage administrators have yet to pay the regulatory fee.  During this quarter, 57 mortgage brokerages and 1 mortgage administrator have surrendered their licences.

 

2 Principal brokers, mortgage brokers and mortgage agents that wanted to continue dealing and trading in mortgages were required to renew their licences by March 31, 2010.  The licence renewal period was from February 1 to March 31, 2010.  On January 31, 2010, before the licence renewal started, there were 1,241 principal brokers, 1,521 mortgage brokers and 8,380 mortgage agents.  On April 1st, 2010, there were 1,092 principal brokers, 1,316 mortgage brokers and 6,699 mortgage agents.

 

Grant Swanson
Executive Director
Licensing and Market Conduct Division

Financial Services Commission of Ontario    

June 2, 2010

 ISSN 1481-1499