The Financial Services Commission of Ontario has published a regulatory bulletin dealing with several issues affecting life insurance agents–most notably, the discontinuation of the Level II life insurance exam and its new policy on rewriting the Life Licensing Qualification Program exam.

The FSCO bulletin notes that Advocis is discontinuing the Level II life insurance exam after December 31, 2005. It found it was no longer economically feasible to offer this service due to significantly reduced enrollment in the Level II self-study course and declining interest in writing the Level II exam. So, Level I agents who intend to complete the Level II exam must do so before the end of 2005. “There is still sufficient time for Level I agents to prepare and take the examination,” FSCO says.

FSCO also says it has written to the licensing coordinators at life insurance companies carrying on business in Ontario to advise them of this change. The letter asks companies to remind their Level I agents that they must provide FSCO with proof of successful completion of either the Level II exam, or its equivalent, either by the fourth year of obtaining their Level I license or by December 31, 2006, whichever comes first.

Agents who successfully complete the Level II exam are deemed to meet the LLPQ standard. However, Level I agents are encouraged to complete the LLQP, as an alternative to completing the Level II examination, as the LLQP has become the national proficiency standard, FSCO says. And, on that front, Ontario has adopted a new policy on the number of times candidates can rewrite the LLQP examination for life and accident and sickness insurance licenses.

Starting September 1, after three unsuccessful attempts at passing the LLQP exam, candidates will be required to wait six months before writing it again. Each subsequent unsuccessful attempt will also require a further six-month waiting period, it notes. “This rewrite policy is being introduced to harmonize Ontario’s policy with that in other jurisdictions in Canada,” FSCO says. “It will also help to promote preparedness for the exam and ensure the most suitable candidates are entering the insurance industry.”

The notice also says that agents must provide the Superintendent with an address in Ontario that is suitable for service of documents by registered mail; and, it reminds agents to use FSCO’s Internet Application System.

It notes that since the IAS was introduced, approximately 25,000 applications have been submitted via the Internet and almost half of all life agent renewals are done via the IAS. “We are encouraged by the number of transactions occurring via the IAS,” it says. “However, a significant number of routine transactions are still dealt with through paper-based processes. Use of the IAS for all routine transactions must become the standard, in order to control licensing transaction costs. FSCO will continue to contact insurers concerning their IAS usage and is committed to ensuring the system addresses the needs of the industry.”