It is your responsibility to provide disclosure to every client or prospect prior to the signing of an application.

Key areas of disclosure include:

• Insurers you are contracted to represent,
• The nature of your relationship with the Insurer or any other business you may be involved with,
• How you are compensated and eligibility for additional compensation or volume perks,
• Potential conflicts of interest,
• The client's right to request additional information.

To learn more, read the CLHIA Advisor Disclosure Reference Document.

Templates and documents to help you Implement Advisor Disclosure:

• Advisor Disclosure – HUB Sample Template
• Corporate Disclosure Letter - Canada Life Sample Template
• Advisor Disclosure Letter - Canada Life Sample Template
• Advisor Engagement Letter - Canada Life Sample Template
• Advisor Engagement Agreement- Empire Sample Template
• Insurance Council of B.C. - Conflict of Interest Guideline Document

When collecting information from clients and prospects, you must be prepared to explain the purposes for which you are collecting this information. Client consent to an advisor’s collection and use of personal information is generally included within the Insurer application signed by the client. This provides authorization to the advisor for this single purpose and to this single Insurer. Where the advisor will retain ANY of this information collected in order to build a client file or to assist the client with future requirements, consent should be obtained from the client in writing at all times. It is a good business practice to provide information to a client or prospect about your own privacy practices. Sample wording is provided in HUBLINK that you can use on your business letterhead to assist you in preparing documentation. This information can be given to the client at an initial meeting.

Templates and documents to help you Client Consent:

• Privacy Consent & Authorization - Empire Life Sample Template
• Privacy Consent Document - HUB Template
• Broker Privacy Statement Client Consent - HUB Template
• The CASL Consent - HUB Template
• Trusted Contact Consent
• Trusted Contact Person Form

HUB advisors are required to ensure that their recommended product or service are appropriate to the needs of the client as determined by a needs-based assessment done by the advisor and/or as identified by the client.

To assist you in meeting your obligation to needs-based selling, please see the reference documents and tools found below. By following the principles outlined in these documents, you can show that your sales practices are consistent with the regulators' requirement that your recommendations fit your clients' needs.


Templates and documents to help you with client suitability:
 

• The Approach-Serving the Client through Needs-Based Sales Practices
  
• IVIC Suitability Needs-Based Sales Practices
  
• Life Insurance Point of Sale Process - Flowchart

A replacement must always be in the best interest of the client. The Broker must follow provincial regulations for the replacement of a life insurance contract in the appropriate jurisdiction, including but not limited to the following:
 

• The Broker should document why changes to the existing policy could not meet the policy owner needs
• The Broker must document the intention to replace a contract. Usually this is done via the new application.

Where replacement is intended the Broker must:

• Complete replacement form fully and accurately
• Explain the contents of the form to the client
• Have the replacement form countersigned where required

To learn more, refer to Policy Replacement FAQ

Templates and documents to help with Policy Replacement
 

• Life Insurance Replacement Declaration
  
• Advantages and Disadvantages of Replacement
  
• AMF Notice of Replacement Form

To learn more, read The Approach-Serving the Client through Needs-Based Sales Practices.

Reasons Why Letter FAQ

Templates and document to help you
 

• Template for Reasons Why Letter
• Reasons Why Letter Template and Instructions Samples

All Brokers should maintain sufficient information in Client Files to demonstrate the appropriateness of any sale or any advice given. It is extremely important that you retain all material information that was utilized in the sales process as well as the maintenance or servicing of a policy/contract. Accurate and secure records will help to:
 

• Demonstrate that you fulfilled your duty of care,
• Avoid any possible breach of client’s privacy and confidentiality,
• Defend against allegations of misconduct,
• Provide ongoing service to clients,
• Add value to your business and your relationship with the client.

A CEM is not simply defined as an e-mail communication but rather a text or SMS message, for example, can also be identified as a CEM. An e-mail offering potential clients a free consultation of their financial well-being could be viewed as commercial activities. Statutory exemptions exist:
 

• between individuals who have a personal or family relationship
• if a Broker receives a referral about a potential new client, from someone who has an existing relationship with both Broker and prospect, the Broker can send one introductory message to that prospect
• where there is an “active” existing business relationship. “Active” is defined as within a 2 year period from purchase or within a 6 month period since last service provided.
• where the recipient visibly publishes their electronic address without stating it does not welcome CEMs
• where you are handed the persons business card containing their electronic address

Maintaining good client files will help to clearly indicate how your recommendations met the client needs and mitigate any conflicts of interest that may arise from the sale of an insurance product. At minimum, a well-documented Client File will include the following:
 

• Consent to collect and retain personal information,
• Know your client worksheets,
• Personal and any product specific disclosure documents,
• Evidence of needs analysis
• Copies of illustrations (signed by client where appropriate)
• Notes of client meetings