Ontario regulator extends insurance exam deadline

(December 20, 2002) Ontario’s insurance regulator has granted a one-month extension to students trying to write their Level 1 exam before a new life licensing regime kicks in. The exams must be booked by the end of the year, but Ontario residents now have until January 31, 2003, to write the test.

Advocis (formerly CAIFA/CAFP), the exam provider in Ontario, says the Financial Services Commission of Ontario is responding to the “unprecedented” demand by students rushing to beat a January 1, 2003, deadline. That’s when the life licensing qualification program (LLQP), a new educational standard for agents, is scheduled to become the only accepted method of approval.

“Basically, we’re like a store closing its doors at closing time, but FSCO is allowing us to stay open just long enough to satisfy every customer,” says Dave Traynor, vice-president of programs at Advocis. “Our phones have been ringing off the hook and we want to accommodate everyone’s request.” Earlier this year, Advocis said the number of people taking insurance exams in Ontario had jumped 10% in 2002, due to the LLQP deadline.

Once students obtain their Level 1 licence, they have two years to obtain their Level 2 licence. New entrants to the industry must study the LLQP, a cross-Canada initiative. Advocis is one of 10 approved LLQP course providers.

The Canadian Insurance Services Regulatory Organizations began work on the LLQP in 1998. The Canadian Council of Insurance Regulators endorsed the proposals last year. The system will not be implemented in Quebec, which has its own insurance licensing regime.

Responding to complaints the LLQP program was too onerous, regulators agreed to the creation of a restricted life insurance agent licence. Restricted life agents have two years to pass the LLQP and must work under the supervision of a qualified agent during that period.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca