Independent Financial Brokers of Canada (IFB) yesterday announced a mid-term reduction in premiums for its professional liability program that will see rates for some plan members drop by as much as $500.

Rates for the majority of plan members were reduced in July 2006 when the IFB program renewed and with these latest reductions IFB has taken the next step in an overall revamping of its E&O program.

The newly introduced rate structure substantially reduces premiums across the plan for those seeking higher limits of $2 million, as well as introducing lowered rates for mutual fund sales representatives.

The new rate structure and premiums will be available on a pro-rated basis as of April 1 for new plan applicants, with similar savings for current plan members when the plan renews later this year.

Featuring a simple “what you see is what you get” pricing structure, the IFB plan has no hidden charges or administration fees, and features premiums that include all applicable taxes and provincially mandated minimum coverage requirements.

In the new simplified rate structure, plan applicants fall into one of two main categories: life insurance brokers with less than 50% of revenues derived from the sale of mutual funds, or brokers with a mixed book of business in which over 50% or earnings come from the sale of mutual funds. The plan also offers a third category for the assistants of mutual fund brokers who hold a mutual fund license but are in a non-selling position.

Independent Financial Brokers is a not-for-profit professional association representing nearly 4,000 independent life insurance and mutual fund advisors.