Advocis has obtained leave to intervene in the Supreme Court of Canada case Canadian Western Bank v. Alberta regarding provincial jurisdiction to require mandatory licensing for individuals selling credit insurance products.

The issue is whether a federally chartered bank must obtain a license under the Alberta Insurance Act in order to promote certain insurance products in the province. The case will be heard in Ottawa on April 11.

In 2001 the Alberta Government issued a regulation requiring any individual who sells any type of insurance to be licensed by the Insurance Council. This would include not only credit insurance, but travel insurance and even some extended warranties. The banks immediately challenged the regulation arguing that Alberta does not have jurisdiction to regulate banks. Moreover, the banks argued, among other things, that the selling of credit insurance is incidental to the business of banking and is not a core insurance product but rather a risk management tool.

The banks failed to persuade the lower court and the Alberta Court of Appeal, and were granted leave to appeal to the Supreme Court of Canada.

The federal government and five provincial governments (Quebec, Saskatchewan, Ontario, New Brunswick and British Columbia) are also intervening. The federal government is intervening in support of the banks’ argument that federal jurisdiction prevails; the provincial governments are intervening in support of Alberta In addition, the non-bank insurance companies have been granted standing to intervene.

Legal materials must be filed by March 31. Advocis will be working very closely with its legal representatives to prepare and file legal arguments with the Court in the coming weeks.

“This is fundamentally an issue of fairness – everyone should be bound by the same rules. Consistent with our strategy for a single, common regulatory framework that applies to everyone, we believe that all those who sell insurance products should be properly licensed,” said Advocis Chairman Gary McLeod, in a release.

“Advocis is the only industry association to have sought – and be granted leave to intervene. We are the only non-governmental party to put forward the views of advisors and consumers,” said McLeod. “It is fitting that in our centennial year Advocis will play a key role in a landmark case that goes to the root of how insurance is regulated.”

The Supreme Court grants leave to intervene to interested parties who can demonstrate their unique perspective and relevance to the proceedings and show they would be impacted by the outcome.