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GR-9.1.3

Insurance firms that appoint appointed representatives take full responsibility for the actions of their appointed representatives and must ensure the following:

(a) The appointed representatives and ‘designated individuals’ in the case of incorporated entities acting as appointed representatives have good conduct and have the experience and qualifications consistent with the licensee’s internal policies relevant to employees undertaking similar functions;
(b) The appointed representatives do not subcontract any of the activities undertaken on behalf of the insurance firm;
(c) The appointed representatives do not approach clients for the renewal of policies originally sold through them;
(d) Compliance with CBB law and relevant regulations by their appointed representatives for the activities undertaken on the licensee’s behalf;
(e) The relationship between the licensee and its appointed representatives must be governed by an agreement that addresses, among other matters, the following:
i. Adherence to the licensee’s internal policies in respect of customer safeguards including avoidance of conflicts of interest and adequate disclosures to customers regarding terms of the insurance policy;
ii. Effective handling of customer complaints and prompt and timely escalation of the complaints to the insurance firm and maintenance of records for the same;
iii. The arrangements for receipt of premiums/contributions (see Paragraph GR-9.1.6);
iv. Where a person acts as appointed representative for more than one insurance firm, it must ensure reasonable segregation of business and confidential data attributable to different licensed principals in order to mitigate conflicts of interest;
v. Adequate recourse, legal or otherwise, to the appointed representative in case of its non-compliance with the CBB law and regulations; and
vi. Access to the CBB, its appointed experts, the insurance firm and its external auditors to all information and records relevant to the insurance activities undertaken by the appointed representatives on behalf of the insurance firm.
(f) Perform periodic reviews of the arrangements with appointed representatives with respect to their quality of service and compliance with CBB requirements.
Added: July 2023