Letters (September 01, 1999)

Dear Editor,

We read the article by Lowell Conn, titled “Faith & Honour”, in your April 1999 publication and would like to comment on a couple of statements attributed to Ginny Bannerman.

Ms. Bannerman is quoted as saying, in reference to Alberta’s new Insurance Act and Alberta’s educational requirements for general insurance brokers, “the requirement — now the lowest in the country — will pave the way for less qualified part-time brokers”. We would like to point out that Alberta’s requirement is not the lowest in the country. In fact, general insurance agents (brokers) in Alberta have to pass two examinations that are of the same or of a higher standard than other jurisdictions. Also, the government has already stated that the initial qualifying examinations will be upgraded to ensure applicants are qualified.

The article goes on to quote Ms. Bannerman as saying “this legislation will allow credit unions and other small financial institutions into insurance.” We would like to point out that the Insurance Act does not give credit unions any broader insurance powers than they already have under the Credit Union Act. In fact, Alberta will be the first province to regulate the current, limited insurance activities of credit unions and other financial institutions with respect to the sale of creditors’ group insurance.

Overall, Alberta’s new Insurance Act will remove barriers to competition and significantly enhance market conduct regulation for the benefit of insurance customers.

Thank you for your attention.

Yours truly,

Marlene Graham, Q.C. MLA Calgary Lougheed