Are HUB Financial and the Insurers you do business with aware of your current compliance status?
 
Insurer and HUB Codes of Conduct detail the requirement for Brokers to provide notification of any interruptions or changes to the status of your insurance license and E&O coverage. We call your attention to section 11 of the HUB Code of Conduct which indicates the Broker requirement to notify HUB in writing of any material changes which may affect your status and/or ability to service clients.
 
Brokers must hold the appropriate license in the province where the application is signed.
 
Sales cannot be made PRIOR to the issue date of a valid license by the provincial regulator. Where this occurs, the Insurer will deem the sale invalid and it will need to be re-visited with your client at a later date or by another licensed Broker. Policy conversions are considered new sales and the Broker must hold the appropriate license. Where sales are completed on a non face-to-face basis, the Broker must decline to submit business for clients in provinces where they are not licensed.
 
Do you know the ramifications of a lapse in E&O coverage?
 
If a claim is received during a gap in your E&O coverage and there is no policy in force, you likely will have no coverage, despite having previously held coverage. Generally, the requirement in E&O policies to grant past acts coverage is that you have maintained continuous coverage. When you do not renew your E&O program at the renewal date and reactivate later, your new effective date becomes the first date of continuous coverage, meaning there is no past acts coverage prior to this date. Talk to your E&O provider to confirm your status in the event of a claim.
 
As some Regulators no longer send renewal reminder notices, we encourage you to place recurring reminders in your calendar for all license and E&O renewal dates. Don’t get caught without appropriate compliance certificates in place! Please ensure that you submit a copy of your updated license and E&O renewal certificates to [email protected] on an annual basis. Please also remember to advise HUB Financial Inc. in the event of any lapse in licensing or E&O coverage.
 
Remember, 
Good Business is Compliant and Compliance Matters!