New Brunswick insurers must fill out new form when terminating sponsorship of agents/brokers

New Brunswick insurers terminating sponsorship of an agent or broker must fill out a new reporting form and return it to the Office of the Superintendent of Insurance.

The Insurance Act requires all agents and brokers in the province to be sponsored by an insurer. Subsection 352(6) of the province’s Insurance Act requires an insurer who is terminating sponsorship to give written notice of such termination with reasons to the superintendent within 30 days.

“Effective immediately, an insurer terminating sponsorship of an agent/broker licence, for any reason, including instances where an agent/broker resigns or changes sponsors and where a brokerage or agency terminate a licensee, must complete a full review of the agent/broker and complete and return the form Termination of Sponsorship of Insurance Agent/Broker,” says a bulletin posted online by the province’s insurance regulator.

The new reporting form is designed to allow better reporting by insurers of the reasons for termination of sponsorship.

“In order to determine whether there are compliance issues, the Office of the Superintendent of Insurance requires as much detail as possible when an insurer terminates sponsorship,” the bulletin says. “Please note that all questions must be answered for the form to be accepted.”