B.C. Brokers: Licensed to continue….

The Insurance Council of B.C. is already underway with a new, continuous licensing system for B.C. brokers.
Under the new system, licenses will no longer expire and all brokers will have a common annual filing date. The system will be fully integrated by May 31, 2008.
“It will be easier for brokerages to manage the licenses in the office,” noted Michael Gaschler, the licensing course coordinator at the Insurance Brokers Association of B.C. (IBABC).
Gaschler wrote about the changes in an article posted on the IBABC Web site. “Licenses will be kept current with just one payment per year, at the same time every year,” he wrote. “This will help everyone’s cash flow, as less of [brokers’] money will sit in Council’s hands as deferred revenue.
“Council’s administration burden will be lightened, which should stave off potential fee increases down the road.”
As of June 1, 2006, all new and renewed licenses are being issued for a one-year period, Gaschler writes. “Licensing fees for first applications and renewals for this one-year period are half of what they were for two years.”
At this point, licenses are maintaining their unique renewal dates. Renewals after May 31, 2007, will be pro-rated and will license brokers until May 31, 2008, at which time all licenses will become continuous and require only an annual filing and fee to keep them active.
The changeover has caused some confusion over continuing education (CE) requirements, the IBABC notes. Basically, the uncertainty is around how CE credits are allocated during the two-year transitional phase.
“If you’ve been thinking that you’ll only need 12 credits because you’re moving into a one-year term, which only requires half the CE credits that a two-year term did, think again,” Greg Mansfield wrote in an article posted on the IBABC Web site.
“Here’s an example: If you are a Level 2 licensee, currently holding a two-year license, and about to renew for a one-year term (as all licensees will have to do during the 2006-08 transition phase to continuous licensing), you’ll need 24 CE credits to be able to renew.
“That’s because you must satisfy the CE requirements of your current license before you can move into the next term, even if the subsequent renewal is for just one year. Then, once you have renewed and are in the one-year license term, you need only satisfy that term’s requirements for your subsequent renewal, which is 12 CE credits per year’s license.”