Getting A Life Insurance License In Ontario: A Guide

If you're looking to become a life insurance agent in Ontario, you'll need to obtain a license from the Financial Services Regulatory Authority of Ontario (FSRA). The process is straightforward and involves just a few key steps. Firstly, you'll need to complete the Life License Qualification Program (LLQP), which consists of several modules. After that, you'll need to pass the LLQP exam, which is offered by an official administrator. Once you've passed the exam, you'll need to find an insurance company or employer to sponsor your licensing application. Keep in mind that you'll also need to acquire errors and omissions (E&O) insurance, which protects you from client claims. Finally, you'll submit your application, pay the necessary fees, and await processing.

Enrol in the Life Licence Qualification Program (LLQP)

To enrol in the Life Licence Qualification Program (LLQP), you must first find an approved course provider. The LLQP course is offered by various institutions, including the IFSE Institute, and is available in both English and French. The associated fees are determined by the respective course providers. The course can be taken online or in person, and it covers the following five modules:

• Accident & Sickness Insurance
• Segregated Funds & Annuities
• Ethics & Professional Practice
• Ethics & Professional Practice (Quebec)

Depending on the type of license you wish to obtain, you will need to complete a combination of these five modules. The course typically takes around 100 hours to complete, but this may vary. After completing the course, you will be given a certificate of completion, which is a prerequisite for taking the LLQP exam. It is important to note that you only have one year after completing the course to pass the exam. If you fail to pass the exam within a year, you will need to retake the course.

Pass the LLQP exam

Passing the LLQP exam is a crucial step in obtaining a life insurance license in Ontario. Here's a detailed guide to help you prepare for and pass the exam:

Understanding the LLQP Exam:

The LLQP (Life Licence Qualification Program) exam is designed to test your knowledge and understanding of the material covered in the LLQP course. The exam is comprehensive and will assess your proficiency in various aspects of life insurance. It consists of four modules, including:

• Accident and Sickness Insurance: This module focuses on understanding the need to provide financial protection for individuals and their families in the event of a serious illness or injury.
• Segregated Funds and Annuities: This module covers the importance of saving and investing for retirement, including different types of investments and their unique features and benefits.
• Ethics and Professional Practice: This module discusses the legal framework governing life insurance and your professional responsibilities as an insurance agent.

Exam Structure and Format:

The LLQP exam is an open-book exam, and you will need to complete all four modules to pass. Each module has a mix of case-study style multiple-choice questions. You will have 1 hour and 15 minutes to complete each module, and there are no bathroom breaks allowed during the exam. The passing grade for the exam is 60% in all jurisdictions.

Preparation Tips:

To increase your chances of passing the LLQP exam on your first attempt, consider the following strategies:

• Enroll with an Approved Course Provider: Ensure you take the LLQP course with an approved provider, such as the IFSE Institute. They will guide you through the regulator's course material and help you understand complex concepts.
• Study Thoroughly: Allocate sufficient time for studying, as the LLQP exam covers a wide range of topics. Industry experts recommend spending between 80 and 120 hours preparing for the exam.
• Utilize Study Tools and Resources: Make use of study guides, flashcards, practice exams, and chapter quizzes offered by your course provider. These resources can help reinforce your understanding of the material and identify areas that need improvement.
• Understand the Exam Process: Familiarize yourself with the exam structure, format, and rules beforehand. Know what to expect during the exam, including the time allotted and any restrictions, to help reduce exam-day anxiety.
• Practice Time Management: The LLQP exam has time limits for each module. Practice answering questions within the given time frame to improve your time management skills.

Retake Policy:

If you don't pass a module on your first try, don't worry. You can retake the exam for that particular module. You have a total of three attempts for each module. After the third unsuccessful attempt, you must wait three months before trying again. If you don't pass after the fourth attempt, you'll need to wait an additional three months. For subsequent failed attempts, the waiting period increases to six months.

Passing the LLQP exam is a significant step towards obtaining your life insurance license in Ontario. With dedication, comprehensive preparation, and a good understanding of the material, you'll be well on your way to a successful career in the life insurance industry.

Find a sponsoring insurance company

To obtain a life insurance license in Ontario, you must find a sponsoring insurance company. This is a crucial step, as the insurer will assess whether you've fulfilled all the licensing criteria and will monitor your activities to ensure compliance with the rules and regulations governing insurance agents. Here are some detailed instructions and considerations to help you find a sponsoring insurance company:

Understanding the Role of a Sponsoring Insurance Company

The sponsoring insurance company, or insurer, will essentially be contracting with you to act as their insurance agent. They will be responsible for evaluating your suitability for licensing and ensuring your adherence to the industry's rules and regulations. This includes overseeing your activities and conduct as an insurance agent.

Identifying Potential Sponsoring Companies

When looking for a sponsoring insurance company, you can explore options by researching and reaching out to insurance providers in your area. You can inquire about their sponsorship opportunities and discuss the possibility of a contractual agreement. It is essential to find a company that aligns with your interests and career goals.

Demonstrating Your Value

When approaching potential sponsoring insurance companies, it is beneficial to showcase your strengths and how you can contribute to their organization. Highlight your relevant skills, qualifications, and any experience you have in the insurance industry or related fields. Demonstrating your value can increase your chances of being selected as their sponsored agent.

Understanding the Requirements

Before finalizing a sponsorship agreement, ensure you thoroughly understand the requirements and expectations of both the insurance company and the regulatory body. In Ontario, your license must be sponsored by an insurer for the first two years. During this period, your sponsoring insurer will provide oversight and support, after which you will be responsible for maintaining your license independently.

Completing the Necessary Steps

Once you have identified a potential sponsoring insurance company and discussed the opportunity with them, there will be specific steps to finalize the sponsorship. This may include submitting the necessary documentation, providing proof of your qualifications, and completing any additional requirements specified by the insurance company or the Financial Services Regulatory Authority of Ontario (FSRA).

Maintaining a Good Relationship

Throughout your sponsorship, it is essential to maintain a good relationship with your sponsoring insurance company. This includes adhering to their guidelines, seeking their support when needed, and representing their organization with integrity. A positive relationship can lead to a more successful and mutually beneficial sponsorship experience.

Acquire errors and omissions insurance

Errors and omissions (E&O) insurance is a mandatory requirement for anyone looking to obtain a life insurance license in Ontario. This professional liability insurance protects you from client claims made against any unintentional mistakes you may make.

Before applying for your license, you must acquire E&O insurance, and you must maintain this coverage throughout the duration of your license, even if you are not actively selling insurance. The Financial Services Regulatory Authority of Ontario (FSRA) conducts random audits to ensure that agents are adhering to this obligation.

As a newly licensed agent, you may be covered by your sponsoring insurer's E&O policy. Your sponsoring firm will also likely help you find an E&O provider.

Once you have obtained your E&O insurance, you can proceed with submitting your license application, with the help of your sponsor. This process includes paying the necessary fees, ensuring the clearance of all background checks, and providing all the necessary information.

Submit the application

Once you have found an insurance provider to sponsor your licence application, you can submit the application. The first step is to ask your sponsoring insurer to set up the new application on your behalf through the Licensing Link Portal. Your sponsoring insurer will be asked to verify that you are suitable to hold a licence and disclose any details that may be important for the regulator to know. Depending on the arrangement, your sponsoring insurer may pay the application fee.

Your sponsoring insurer will send you an email with two links. The first link will direct you to complete a criminal background check through Triton Canada (Triton), the FSRA-approved vendor. After completing the background check, you will then return to your sponsoring application email and complete your licensing application on the FSRA website. A fee of $19.15 applies for Triton's service, and the background check is valid for 90 days.

You will then return to the sponsoring application email and use the second link to continue your application process. You will need to verify your suitability to have a licence by confirming the following:

• You are familiar with the laws of Ontario relating to the licensing of life insurance agents.
• You will hold yourself out publicly and carry out business in good faith as a life insurance agent in the name in which you are licensed.
• You are not engaged in any other business or occupation that would jeopardize your integrity, independence or competence as an insurance agent.
• You are of good character and reputation.
• You have provided all information about bankruptcies, lawsuits, criminal records, decisions from other regulators or licensing bodies, and other employment information.
• You successfully completed the LLQP exam (you will need to provide the score from your confirmation email).
• You are a suitable person to receive a licence and meet all licensing requirements.

If you need to pay the fee yourself, you can do so on Licensing Link with a credit card (Visa or Mastercard) or debit cards (Visa Debit or Mastercard Debit). You will then submit the application to the FSRA through Licensing Link.

Frequently asked questions