To the attention of all insurance companies licensed to transact life insurance in Ontario
The Ontario Insurance Commission (OIC) is releasing a Code of Ethics that sets out standards of conduct for life insurance agents under the Government's initiative to reform Ontario's scheme of regulation for agents.
This Code is one of several achievements resulting from this initiative, known as Life Agent Reform (LAR), that was inaugurated on December 24, 1994 through OIC Bulletin No. 27/94 - General. Since then, the OIC has introduced an implementation plan for LAR (OIC Bulletin LH-1/95) as well as Errors & Omissions (E&O) insurance as a LAR prescribed requirement for life insurance agents.
The Code has been developed through close consultation with numerous organizations and individuals. A Working Group was established in May, 1994, and comprises representatives of the Consumers Association of Canada, the Life Underwriters Association of Canada (LUAC), the Independent Life Insurance Brokers of Canada (ILIBC), and the Canadian Life and Health Insurance Association of Canada (CLHIA).
In the near future, the OIC intends to ask the Government to consider making this Code into a regulation under the Insurance Act. The Code is not binding until it is a regulation.
The OIC is of the view that agents who adhere to the standards in the Code are acting in accordance with fair and responsible business practices. More importantly, the industry's adherence to the Code's standards of conduct in relation to consumers will inspire consumer confidence and strengthen the industry.
If you have any questions on the attached Code of Ethics for life insurance agents, please contact Calvin Johansson at the OIC. Tel. no. is (416) 590-7232.
Acting Superintendent of Insurance
June 2, 1995
Attachment (PDF) : Code of Ethics