Steps To Becoming An Auto Insurance Agent In Alberta

To become an auto insurance agent in Alberta, you must be licensed by the Alberta Insurance Council (AIC). The first step is to pass the General Insurance Level 1 exam administered by the AIC. Before taking the exam, you must study with an Approved Education Provider. Once you have passed the exam and obtained your license, you can sell car insurance in Alberta, as well as other types of general insurance such as home, business, and liability insurance.

Pass the General Insurance Level 1 exam

To become an auto insurance agent in Alberta, you must pass the General Insurance Level 1 exam. This exam is administered by the Alberta Insurance Council (AIC) and is a requirement for selling car insurance in Alberta.

The General Insurance Level 1 exam covers a range of topics, including technical skills, risk management, property insurance, liability insurance, auto insurance, travel insurance, ethics, and industry knowledge. To prepare for the exam, you must complete an approved course, such as the General Licensing Qualification Program (GLQP), which is offered by various institutions. These courses will provide you with the necessary knowledge and skills to pass the exam.

The GLQP course will cover topics such as insurance fundamentals, industry regulations, contract law, insurance processes, property insurance policies, liability insurance policies, and more. It is important to choose a reputable course provider that offers comprehensive training and resources to ensure you are well-prepared for the exam.

Once you have completed the required course, you can register for the General Insurance Level 1 exam. The exam consists of multiple-choice questions, true-or-false statements, and short answer questions. A minimum score of 70% is required to pass.

It is recommended that you allow adequate time to study and prepare for the exam. There are also exam preparation programs available, such as the ILScorp L1 Program, which offers practice exams, review tests, flashcards, and other resources to help you succeed.

Passing the General Insurance Level 1 exam is a crucial step towards becoming a licensed auto insurance agent in Alberta. It ensures that you have the necessary knowledge and understanding of insurance principles, regulations, and industry practices to provide effective services to your clients.

Study with an Approved Education Provider

To become an auto insurance agent in Alberta, you must pass the General Insurance Level 1 exam administered by the Alberta Insurance Council (AIC). Before you can take the provincial licensing exam, you need to study with an Approved Education Provider.

The General Licensing Qualification Program (GLQP) Level 1 course is offered by a variety of Approved Education Providers. These include:

• Advance Insurance Educational Services Inc.
• Insurance Brokers Associations of Alberta (IBAA)
• ILS Learning Corporation
• LJB Training Solutions Inc.
• The Royal Alberta College
• Business Career College
• PDTC Inc (Professional Development Training Center) / Jane Davis
• PNC Learning
• The Insurance Institute of Northern Alberta
• The Insurance Institute of Southern Alberta
• Stellar Training and Consulting Inc. o/a Stellar Business Career Institute (SBCI)
• University of Calgary Continuing Education

These providers offer courses and study materials to prepare you for writing the licensing exam. It is important to note that the contact information and web links provided by the Alberta Insurance Council may not always be current or accurate. Therefore, it is recommended to contact the AIC or visit their website for the most up-to-date information on approved education providers.

Submit a security clearance document

To become an auto insurance agent in Alberta, you must be licensed by the Alberta Insurance Council (AIC). As part of the licensing requirements, you must submit a security clearance document. Here is a detailed guide on submitting a security clearance document:

Understand the Purpose of the Security Clearance Document:

The security clearance document is a crucial aspect of the licensing process, as it helps ensure the safety and protection of consumers. By obtaining this document, the AIC can verify that you do not have any criminal convictions that would render you unfit to receive a certificate of authority to sell insurance.

Obtain a Criminal Record Check:

You must obtain a recent criminal record check to be submitted as your security clearance document. This can be done through MyBackCheck or your local police or RCMP detachment. The report should be no older than three months, and it must be shared on MyBackCheck or uploaded as a scanned PDF. If you are a US resident, you must obtain an FBI or First Advantage criminal record check.

Review the Criteria for Criminal Convictions:

The criteria for criminal convictions that would impact your eligibility for an insurance agent's certificate are outlined in the Insurance Agents and Adjusters Regulation. Any convictions must be disclosed and reviewed by the AIC to determine your fitness to hold a certificate of authority.

Provide the Security Clearance Document:

When submitting your online application through the AIC Portal, you will be required to include your security clearance document. Ensure that you have the document readily available in the required format (either shared on MyBackCheck or uploaded as a PDF).

Maintain a Clean Criminal Record:

It is important to maintain a clean criminal record throughout your career as an insurance agent. If your license is suspended or cancelled, and you wish to re-apply, you may be required to provide an updated criminal record check as part of the licensing process.

By following these steps and submitting your security clearance document, you can be well on your way to obtaining the necessary licensing to become an auto insurance agent in Alberta. Remember to refer to the AIC website for the most up-to-date information and requirements.

Be recommended by an authorized person

To become an auto insurance agent in Alberta, you must be licensed by the Alberta Insurance Council (AIC). One of the requirements to obtain this license is to be recommended by an authorized person. This means that your application for an insurance agent's certificate must be recommended by a person who has been specifically authorized by the Head Office to recommend agents for that insurer. This is a mandatory requirement to obtain a license.

If you are applying for a Life and/or Accident & Sickness insurance license, you must be recommended by an authorized person from the insurer. You may apply as an employee of an insurer or as an employee or independent contractor of a business.

If you are applying for a General Insurance license, you must be recommended by an authorized person from the insurer or the licensed Designated Representative. Again, you may apply as an employee of an insurer or as an employee or independent contractor of a business.

It is important to note that you must meet all the requirements to obtain an insurance agent's license in Alberta, including submitting a security clearance document, carrying Errors and Omissions Insurance, and passing the required examinations.

Carry Errors and Omissions Insurance

To become an auto insurance agent in Alberta, you must be licensed by the Alberta Insurance Council (AIC). One of the requirements to obtain this license is to carry Errors and Omissions Insurance. This is a type of liability insurance that provides coverage for professionals who provide advice or services to clients. It protects professionals from claims made by clients for mistakes, negligence, or failure to perform their professional duties.

Errors and Omissions Insurance is important because it shields your business from claims of inadequate or negligent work. It covers legal costs and damages that arise from claims made by clients due to errors, omissions, or negligence in the services provided by the insured professional. For example, if a client sues you for incorrect advice or a service you provided, your E&O insurance can cover your costs.

The amount of E&O coverage you need depends on the size and nature of your business, and the type of services you provide. In Alberta, the E&O insurance required for a business holding a certificate of authority must provide coverage of at least $500,000 per claim, with a maximum policy payout of $2,000,000 in a policy year. This coverage must be issued in the name of the business and provide coverage for employees and independent contractors of the business who hold certificates of authority.

You can purchase E&O insurance from an insurance broker who specializes in professional liability insurance. It is recommended to research and obtain quotes from several providers to ensure you are getting the best coverage at a reasonable price.

Frequently asked questions