Is Your Business Card Compliant?
A broker must carry on business in good faith as a life insurance agent in conformity with the provisions of the law of each jurisdiction in which the broker holds a life insurance license. To that end, the broker must hold out under the name on the license unless provincial regulation allows otherwise.
The provincial guidelines are generally the same in all provinces but it is important to note that not all allow the use of trade / business names. In many provinces, the life licensed broker can add their business name to their license and the license application and renewal process is quite clear regarding options. It is important to note that in:
British Columbia: Licensees are required to hold themselves out to the public in the manner in which they are licensed. This assists in assuring that the public knows with whom they are dealing. This means that letterhead, business cards, signage and advertising must properly reflect the name(s) shown on the licensee’s license, or the agency or firm the individual is authorized to represent. Prior to conducting insurance activities, every agent is required to disclose that he or she is an insurance agent. It is recommended that all insurance agents include on their letterhead and business cards a reference that clearly identifies them as an insurance agent to assist in meeting this license condition.
Newfoundland: If you do not have a registered and licensed corporation, you can use a trade name with the following conditions:
1. Both your first and last name must appear in the trade name
2. The fact that you are not incorporated must be reflected in the trade name
3. The consumer must not be misled by the trade name selected and must easily identify the services you are qualified to offer
Ontario: Individual brokers cannot use a business name in their insurance activities unless they hold a corporate license.
Individuals
Individually licensed agents may only do business in the name in which they are licensed. Individual agents may not operate under a trade name or style.
Style or trade names
All agents, whether a corporation, a partnership or an individual, may only do business in the name in which they are licensed. It is not acceptable to “hold out,” that is, answer the phone, provide business cards, advertise or do any business in a name other than that which appears upon the license.
Corporations
Companies may be licensed only in the corporate name as it appears in the Articles of Incorporation. However, corporations may ask to have a registered trade name (operating as) or style added to the license.
Partnerships
A partnership license is generally the collaboration of multiple corporations where there is a business reason to do business together. A partnership may also choose to carry on business under a registered trade name or style which may be added to the license by submitting a request to FSCO.
In addition, the broker must avoid terms that indicate meaningful specialized training and competency unless the broker has actually achieved the claimed level of training and/or competency. For example, the broker must not:
- mislead as to qualifications or the nature of business being conducted,
- claim to have “associates” unless there is at least one licensed individual with equal or better qualifications,
- hold out as a financial planner unless holding a planning designation recognized by the Financial Planning Standards Council.
It is also important to note that a broker cannot use the business name of an Insurer or MGA on their business card without their express permission.
Remember,
Good Business is Compliant and Compliance Matters!