Life and/or Accident and Sickness Insurance Agents

Becoming an Insurance Agent:

What You Need to Know
About the Insurance Council of BC
The Insurance Council of BC (Insurance Council) is the body appointed by the BC provincial
government that regulates and licenses life and/or accident and sickness insurance agents (life
insurance agent), general insurance agents, salespersons, and adjusters. The Insurance Council
protects the public by ensuring that licensees act ethically, with integrity and competence.

About this Guide

As you prepare for work as a life insurance agent in British Columbia, this document provides
information you need to be aware of:

• What is a life insurance agent?

• What professional obligations does a life insurance agent have?
• What’s expected when working as a life insurance agent?
• How do I become a life insurance agent?
• Where can I find more information?
• Important terms and definitions

1 BECOMING A LIFE INSURANCE AGENT

What is a Life Insurance Agent?
A life insurance agent (also known as a life agent) is an intermediary (a middle person) who has
a contract with at least one insurance company and is authorized to sell life and/or accident and
sickness insurance products and services to clients.

In British Columbia, life insurance licensees are authorized to sell life and accident and sickness
insurance products, whereas accident and sickness insurance licensees are authorized to sell
accident and sickness insurance only.

Professional Obligations
To become a life insurance agent, you are required to write an exam and obtain a life and/or
accident and sickness insurance licence; however, this is only the first step in becoming a life
insurance agent. Upon receiving your insurance licence, you are responsible for meeting the
ongoing professional obligations of being a licensee with the Insurance Council. This includes:

• Completing your Continuing Education (CE) requirements annually

• Maintaining your Errors and Omissions (E&O) insurance
• Submitting your annual filing (licence renewal)
• Providing Mandatory Notifications to the Insurance Council
• Fulfilling the requirements set out in the Insurance Council Rules and Code of Conduct.
Failure to meet your professional obligations may lead to disciplinary action and/or fines.

Licensees have a responsiblity to be aware of

and comply with regulatory requirements.

Practice advisories about important changes or

requirements for insurance licensees are published in
the Notices section of the Insurance Council website:
[Link]/notices

BECOMING A LIFE INSURANCE AGENT 2

Working as a Life Insurance Agent: What’s Expected of Me?
Life insurance is a fast-paced, competitive industry that requires licensees to demonstrate
commitment and competence. As a life insurance agent, you will be expected to demonstrate the
following attributes in your day-to-day activities.

This includes:

Protection of Client’s Interests: You are committed to your professional and ethical obligation to
put the clients’ best interests first at all times.

Resilience: You are capable of handling the stress and client rejection that you may experience
from cold-calling or knocking on doors to gain prospects.

Adaptability and Flexibility: You work outside 9-5 hours and assist your clients during evenings
and weekends outside the office to cater to their availability.

Compliance with Regulatory Obligations: You are compliant with your professional
responsibilities as an Insurance Council licensee, staying up-to-date with the Insurance Council’s
Rules, Code of Conduct, and insurance legislation.

Commitment to Continuous Learning: You have an in-depth knowledge of insurance products

and services to ensure that you are making the best recommendation for your client’s needs. You
are well-informed about current insurance trends and help consumers understand the current
market conditions.

Self-Motivation: You understand that time and effort are required to build your reputation and a
client base in order to attain a steady income. Compensation varies depending on your contracting
agreement with insurers or insurance agencies. If you are an independent contractor, you are
likely to be paid based on commission. As such, you ensure you have sufficient funds to support
yourself, taking into account potentially unstable income while you establish your practice.

Financial Capability: You are aware of the costs you may incur to obtain a licence and expenses to
do business. While costs vary, the opposite page provides an approximate estimate of how much
licensure costs.

3 BECOMING A LIFE INSURANCE AGENT

For Example:

Licence fees may amount to over $1,000 before you begin working. Fees can include* (and are not
limited to):

• LLQP Prequalification Course $300 - $800

• LLQP Exam $100-$200 (for first attempt)
• Licence Application $225
• Criminal Record Check $50-85
• Council Rules Course $75-$90

This does not include the following:

Ongoing costs of maintaining an insurance licence

• Annual Filing (licence renewal) $225

• Continuing Education courses Cost varies
• Errors and Omissions insurance Cost varies

Costs of doing business

• Overhead expenditure
• Training
• Potential commission chargebacks (if a client cancels their policy within the
first two policy years)

Note: Expenses may vary depending on your contractual agreement with an agency or insurer.

*Example costs from October 2020

BECOMING A LIFE INSURANCE AGENT 4

How Do I Become a Life Insurance Agent?

Before you can apply for a life insurance agent licence, you’ll need to complete the
prequalification requirements:

• Complete the Life Licence Qualification Program (LLQP) through an Insurance Council–
approved course provider.

• Successfully pass the required LLQP exam modules for your licence within one year of
completing the LLQP course:

¾ For a life insurance agent licence, you’ll need to complete all four exam modules: Life
Insurance, Accident and Sickness, Ethics and Professional Practice - Common Law, and
Segregated Funds and Annuities.
¾ For an accident and sickness insurance agent licence, you’ll need to pass two
qualification exam modules: Accident and Sickness, Ethics and Professional Practice -
Common Law.

Within one year of successfully completing the LLQP exams, you can apply for an insurance
licence. Before applying, you will need to:

• Complete the Council Rules Course;

• Obtain a contract to represent an insurance company;
• Ensure you have a qualified life agent supervisor who will supervise you for your first two
years of licensing (see Guidelines for Supervision of New Life and/or Accident & Sickness
Agents);
• Ensure you have the minimum required Errors and Omissions Insurance coverage;
• Determine if you will be an independent contractor (unaffiliated with any agency) or
employed by an insurance agency; and
• Ensure you have reviewed and met all requirements for suitability and conflict of interest
as stated in the licence application.

Submit your completed licence application and supporting documentation to the Insurance
Council.

Once your application has been reviewed and approved, you will receive confirmation from the
Insurance Council that you have successfully achieved your life licence.

Where can I find more information?

Contact the Insurance Council of BC for more on licensing requirements and professional
obligations for life insurance agents, at 604-688-0321 or practice@[Link].

5 BECOMING A LIFE INSURANCE AGENT

 Becoming a Life Insurance Agent: An Overview

Prequalification

1. Complete LLQP Prequalification Course

Pass the LLQP Exams

2. (Within one year of LLQP course completion)

Complete Council Rules Course

3. (Before applying for licence, within one year of application)

Licence Application

Review and ensure you meet the application requirements:

4.
You have a contract with at least one insurance company.
You have a supervisor who meets the requirements of the
New Life Agent Supervision Guidelines.
You have the minimum required Errors and Omissions
Insurance coverage.
You have completed a criminal record check within 90
days of application.
You meet all other requirements listed in the licence
application, including suitability and conflict of interest.

Submit a completed licence application to the Insurance

5. Council of BC

Maintaining Licensure

Meet ongoing licence requirements:

6. • Hold current Errors and Omissions Insurance
• Provide mandatory notifications to Council
• Comply with the Insurance Council Rules and Code of Conduct

By May 31 annually:
7. • Complete your CE Program requirements
• Complete your annual filing (licence renewal)

BECOMING A LIFE INSURANCE AGENT 6

Glossary of Terms
Annual Filing: Annual licence renewal process that consists of completing a declaration to confirm
that the licensee meets their professional licensing requirements and submitting a filing fee.

Code of Conduct: This document establishes standards of conduct for the business of insurance
to be followed by licensees. Council Rule 7(8) requires all licensees to comply with the Code of
Conduct in addition to Council Rules.

Continuing Education (CE) Program: Insurance Council of BC licensees are required to complete
continuing education annually to develop and maintain their knowledge of practice and insurance
legislation requirements, and insurance products related to their class of licence.

As a part of the Insurance Council’s CE Program, life insurance agents must complete continuing
education that is directly related to:

• Life insurance products;

• Financial planning, provided the education is focused on life insurance and not
non-insurance sector, such as securities and mutual funds;
• Compliance with insurance legislation and requirements such as the Insurance Council’s
Rules, Code of Conduct, the Insurance Act, privacy legislation, and anti-terrorism/money
laundering legislation;
• Ethics; and
• Errors and omissions.

More information about the Insurance Council’s CE Program, is available on our website.

Insurance Council of BC: Insurance regulatory body appointed by the BC provincial government
for the licensing and oversight of insurance agents, salespersons, and independent adjusters.

Council Rules: A set of rules that sets out licence conditions and requirements for all insurance
licensees in BC, in addition to requirements already set out under the provincial Financial
Institutions Act and other legislation.

Council Rules Course: A mandatory course that must be completed to qualify for insurance
licensure in BC, and which provides instruction on a licensee’s responsibilities under Council

7 BECOMING A LIFE INSURANCE AGENT

Rules, provincial legislation, and other regulatory responsibilities.

Errors and Omissions (E&O) Insurance: Professional liability insurance that protects the insured
person against claims of error or negligence. All insurance licensees are required to maintain or
be covered by Errors and Omissions insurance that includes minimum coverage of $1,000,000 per
claim and $2,000,000 in the aggregate that extends to all insurance activities.

Financial Institutions Act: A provincial statute that provides the regulatory framework to govern
how insurance companies and intermediaries (which includes insurance agents, salespersons,
and adjusters licensed by Insurance Council), credit unions, and trust companies operate in British
Columbia.

Insurance Act: A provincial statute that sets out the statutory requirements of insurance contracts
made or deemed to be made in British Columbia.

Insurance Agent: Defined in the Financial Institutions Act as a person “who solicits, obtains or takes
an application for insurance, or negotiates for or procures insurance, or signs or delivers a policy,
or collects or receives a premium.”

Life Agent: Also known as a Life and/or Accident and Sickness insurance agent. A life agent is
authorized to act as an insurance agent for both life and accident and sickness insurance.

Life Agent Supervisor: A licensed individual who directly supervises a new life agent and who is
qualified to do so under the Insurance Council guidelines for the supervision of new life agents.

Life Licence Qualification Program (LLQP): The LLQP course and exam is a licensing qualification
standard that applies to all individuals who want to become licensed as life insurance agents in
Canada.

Mandatory Notifications: Licensees have an obligation to provide notification to Council of

certain changes or decisions that are related to their insurance licence. These may be related to
personal or business-related changes, or disciplinary or legal decisions. For a list of all required
notifications, please visit our website.

BECOMING A LIFE INSURANCE AGENT 8

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© insurance council of british columbia, 2020

Suite 1400, 745 Thurlow Street, Vancouver, BC V6E 0C5

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