Starting 2017 new restrictions are being imposed on the Level 1 Insurance Salesperson.
I’ve recently been receiving lots of questions about the “new” licensing restrictions imposed by the Insurance Council on Level 1 agents.
Before, a Level 1 General Insurance Salesperson were not able to sign contracts of insurance on behalf of an insurer (ie. they cannot bind) nor could they conduct insurance business without the direct supervision of a Level 2 or higher insurance agent. If you’ve had a Level 1 License for a while, you might be grandfathered.
With the new rules imposed at the start of 2017, there are some added restrictions. In addition to the restrictions explained above, Level 1 Licensees cannot “carry on insurance business [outside of the premises of the agency].” If you wish to do business outside of your brokerage premises, there are certain criteria you must meet:
- Be licensed for 6 of the 9 preceding months
- Met council rules on minimum training and experience in automobile insurance (ie. for road runners or people selling insurance at car dealerships)
If you meet these 2 criteria, you are able (as a Level 1 Agent) to sell automobile insurance at a dealer or car rental business.
There are also new rules surrounding compensation. Level 1 Agents can still make a commission, but 60% of their remuneration must be in salary (whether that is hourly, daily, monthly, or some other regular rate).
As you can see, there are a lot of restrictions for Level 1 Agents. If you’re currently a Level 1 Agent and need to get a Level 2, our course bundle can help (and since you’ve read this far, you can use the coupon code [allhub] to save $20 on any of our courses).