In order to obtain a licence, an applicant must meet the following requirements:
- Complete the application with applicable documents and pay the required fee of $200 for a partnership or $400 for a corporation.
- Be familiar with the laws of Ontario relating to the licensing of corporation and partnership agencies.
- Hold itself out publicly and carry on business in good faith only in the name in which the corporation or partnership is licensed.
- Not be engaged in any other business that would jeopardize the integrity, independence or competence of the corporation or partnership.
- Be of good character and reputation.
- Be legally entitled to carry on business in Canada and make all the required provincial and federal government regulatory filings.
- Provide an Ontario mailing address that is suitable for registered mail.
- Life insurance corporation and partnerships must acquire the appropriate Errors and Omissions (E & O) insurance coverage and maintain this coverage through the term of the licence.
- Corporation applications must include a copy of the Articles of Incorporation plus any amendments. Extra-Provincial incorporations must be registered with the Ontario Ministry of Government Services. Information on their Directors and Officers must also be provided.
- Partnership applications must include the Partnership Declaration registered with Ministry of Government Services and all partners must hold a valid Ontario insurance agent’s licence.
Life insurance corporation and partnerships must maintain E & O insurance coverage with a minimum of $1 million coverage per incident and an aggregate limit of $2 million with two years tail coverage and extended coverage for fraud. The name of the coverage provider and the policy or certificate number must be provided with the corporation or partnership application.
Sponsoring companies are responsible for investigating the record of the applicant and confirming the following:
- That the corporation or partnership and its principals are of good character and reputation.
- That the corporation or partnership, if previously engaged in business, has a satisfactory record in business.
- That the corporation or partnership is in all respects a suitable corporation or partnership to receive a licence.
- That the sponsoring insurer has established and maintains a system to ensure that the corporation or partnership complies with the Ontario legal requirements and the requirements of the agency's licence.
Insurers can terminate sponsorship for a corporation or partnership by providing written notice to FSCO. The termination suspends the licence and the corporation or partnership licence will not be active until a new sponsor is identified and the relevant documents are submitted to FSCO for review.
Corporations or partnerships not incorporated or registered in Ontario or under the Canada Business Corporations Act must include a copy of their Business Registration, filed under the Corporations Information Act with the Ontario Ministry of Government Services, on which the corporation or partnership's Ontario Corporation Number is shown.