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Insurance brokerage licenses
An insurance agent, who acts on behalf of more than one insurer in respect of one class of insurance business being long-term or general, is deemed for the purpose of this Act to be acting as an insurance broker.
General requirements:
- A professional indemnity insurance in respect to the broker´s insurance activities may be required by the Commission. This is in case of any loss. Usually it is no less than $100,000, but the Commission may set another figure. The professional insurance will cover the activities on behalf of the broker or of his/her sub-agents if any. A broker cannot conduct any insurance business without said professional insurance.
- A power of attorney or an agreement between the broker and the insurer must be filed to the Commission as guarantee. Said document should extend to include the activities on behalf of the insurer and the agent or his/her sub-agents, if any. A broker cannot conduct any insurance business without said document.
- An insurance manager or a licensed principal representative may carry on insurance business as an insurance broker, as long as he or she holds a license for such activity.
Every insurance broker should also file to the Commission within 3 months of the end of his financial year the following information in respect of his domestic business:
- A list of all insurers for whom the broker is authorized to act, and the premium income to each insurer the last financial year.
- Evidence of the existence of professional indemnity insurance in respect of his activities as an insurance broker as required under section 9 of the Insurance Act
- A list of the sub-agents, if any, whom are authorized by the broker to solicit domestic business on his/her behalf and on behalf of the insurers represented by the broker
- Confirmation in writing that the information set out in the application of the broker´s license, as modified by subsequent notifications of changes in accordance with section 5(5)(a) of the Act, remains correct and gives a full and fair picture of the broker´s business.