Ontario broker regulator issues best practices guide related to province’s auto reforms

Ontario’s insurance brokers should be establishing procedures for educating all of their clients about Ontario’s upcoming auto insurance reforms, according to the Ontario Auto Reform 2010 Best Practices Guideline posted by the province’s broker regulator.
The Registered Insurance Brokers of Ontario (RIBO) says these procedures would include a number of elements:
•Sending out the province’s ‘More Choice Mailer’ – which contains a detailed list of the auto insurance reforms to be implemented on Sept. 1, 2010 – to all broker clients. Insurance companies are legally obligated to send the forms to their clients, but brokers should do this as well, RIBO advises.
•Maintaining consistency of all messaging to consumers about the province’s auto reforms. This should include a “script” for all licensed brokers to follow in their dealings with clients.
•Seeking and documenting detailed and informed instructions from clients on the changes they want to make to their auto insurance policies.
•Meticulous record-keeping.
The last point relates to potential errors and omissions claims that might arise from a broker’s failure to explain the available insurance options to a client.
“Brokers will be able to mitigate the risk of being on the wrong end of an errors and omissions claim or a misconduct complaint by being able to show by detailed notation on a file that a customer was specifically advised of the options for that coverage and chose not to add coverage, for the reasons noted on that file,” RIBO’s best practices document reads. “This will go some distance toward refuting a customer’s claim that ‘No one told me about this.’
“Client records should be individualized and reflect both the discussion and any instructions received.
“If it is the brokerage’s practice to have sent the ‘More Choices Mailer,’ that should also be noted in the client files.”
RIBO advises using a checklist to document accepted or declined coverage. (A sample checklist is contained in the guide.)
The full best practices guide is available online at:
http://www.ribo.com/index.php?option=com_content&view=article&id=37&Itemid=51