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Difference between a Level 1 and a Level 2 or 3 license.

The higher your level the higher you have responsibilities and authorities.

  • For practitioners in a province with a graduated licensing scheme, a Level 1 license allows you to begin practicing insurance, however, there are certain restrictions on payment of commissions or location in which you’re able to practice.  In most provinces, Level 1 agents are only allowed to practice insurance inside the brokerage and under the supervision of a Level 2 or 3 agent.
  • As a Level 2 agent, you have more responsibilities and authority.  You are allowed to practice insurance outside and also work as a “producer” finding your own clients and earning a commission.  In Ontario, this class of license is called RIBO 2 (Unrestricted - Technical)
  • As a Level 3 agent, you are now able to manage or run your own brokerage as a “nominee” or "principal broker".  In Ontario, this license is referred to as RIBO 3 license or Unrestricted - Management
  • If you’re interested in the different jobs available in the insurance industry, take a look at an article I wrote here.