(1) The minister may issue to a person who has complied with the requirements of this Act a licence authorizing that person to carry on business as an agent subject to the provisions of this Act and to the terms of the licence.
(2) Upon written notice to the minister that an insurer has appointed a person to act as its agent in the province or that the agent of an insurer licensed to transact the business of accident insurance in the province under the Insurance Companies Act has appointed a person to act as his or her subagent in the province and upon application of that person upon a form prescribed by the minister and payment by him or her of the fee that the Lieutenant-Governor in Council prescribes by regulation, the minister shall, if he or she is satisfied that the applicant is a suitable person to receive a licence and intends to hold himself or herself out publicly and carry on business in good faith as an agent, issue to the applicant a licence which shall state in substance that the holder is, during the term of the licence, authorized to carry on within the province the business of an agent, but where the minister is of the opinion that an applicant is not a suitable person to receive a licence, he or she may refuse him or her a licence.
(3) Notice of appointment by an insurer or agent under subsection (2) shall be upon a form prescribed by the minister and shall state that the applicant has been authorized in writing by the insurer or agent to act as agent or subagent respectively in the soliciting of and negotiating for insurance and shall be accompanied by a sworn statement of the applicant on a form prescribed by the minister which shall give the name, age, residence and present occupation of the applicant and his or her occupation for the 5 years immediately preceding the date of the notice and particulars of other employment in which he or she may be engaged and the other information that the minister may require.
(4) Licences so issued shall be of 2 classes:
(a) licences covering insurance transacted by insurers licensed to carry on life insurance under the Insurance Companies Act; and
(b) licences covering insurance transacted by insurers licensed to carry on accident insurance under the Insurance Companies Act.
(5) The licence issued shall expressly limit the authorization of the agent to the class of insurance for which the licence is granted, but nothing prevents the issue to the same applicant of 2 licences if application has been made for 2 licences.
(6) Where the agency, upon notice of which a licence is issued, is terminated, notice in writing shall immediately be given by the insurer or agent to the minister of the termination, with the reason for the termination, and then the licence shall be automatically suspended, but the licence may be revived, subject to the approval of the minister, upon filing of notice of a new agency appointment and upon payment of a fee of $1.
(7) An insurer or agent who fails to notify the minister within 30 days of the termination of an agency appointment as required by subsection (6) is guilty of an offence.
(8) A licence issued under this section may be revoked or suspended by the minister if after investigation and a hearing he or she determines that the holder of the licence
(a) has been guilty of misrepresentation, fraud, deceit or dishonesty;
(b) has made a material misstatement in the application for a licence;
(c) has violated this Act or a law of the province relating to the class of insurance covered by his or her licence;
(d) has unreasonably failed to pay over to the insurer or agent entitled to it money collected by him or her retained beyond the term stipulated in his or her agency contract or agreement;
(e) has placed insurance with insurers other than those licensed in the province;
(f) has demonstrated his or her incompetency or untrustworthiness to transact the business of an agent for which the licence was granted, by reason of anything done or omitted in or about that business; or
(g) has employed upon salary or otherwise a person whose application for licence as an agent has been refused or whose licence has been revoked or suspended under this Act without having first obtained the written approval of the minister.
(9) A licence issued under this Act shall expire on December 31 in each year unless automatically suspended by notice under subsection (6) or unless revoked or suspended by the minister under subsection (8), but the licence may, in the discretion of the minister, be renewed for the succeeding year upon application upon a form prescribed by the minister giving the information that he or she requires, accompanied by a certificate of agency appointment of an insurer or agent and payment of the fee prescribed under subsection (2).
(10) A life insurance agent shall not be licensed to act as agent for more than 1 insurer transacting life insurance, and the name of the insurer shall be specified in the licence and an agent shall not represent himself or herself to the public by advertisement or otherwise as the agent of more than 1 insurer, but where an agent is unable to negotiate insurance on behalf of an applicant for insurance with the insurer for which he or she is an authorized agent, that agent shall have the right to procure the insurance from another insurer if the other insurer obtains in each case the consent in writing of the insurer for which the agent is the authorized agent, and files a copy of the consent with the minister.
(11) A collector of insurance premiums, who does not solicit applications for or the renewal or continuance of insurance contracts or act or aid in negotiating those contracts or the renewal of them, may carry on that business without a licence therefor, but the collection fee shall not exceed 5% of an amount collected.
(12) A member of a fraternal, sororal or mutual benefit society, other than one who devotes or intends to devote more than 50% of his or her time to the solicitation and procurement of insurance contracts for the society and who receives or intends to receive a commission or other compensation directly dependent on the amount of insurance solicited and procured by him or her, may, without a licence, solicit persons to become members of that society, but a person who in the preceding calendar year has solicited and procured insurance contracts on behalf of a society in an amount of insurance in excess of $20,000 shall be presumed to be devoting or intending to devote more than 50% of his or her time to the solicitation or procurement of insurance contracts for such society.
(13) Unless the minister otherwise directs, a salaried employee who does not receive commissions, or an officer of an insurer, or an employee of a licensed agent who does not receive commissions and who acts only in the name and on behalf of the licensed agent may, without a licence, act for the insurer or agent in the negotiation of a contract of insurance or in the negotiation of the continuance or renewal of a contract which the insurer or agent may lawfully undertake, but an officer or salaried employee whose application for licence as an agent has been refused or whose licence has been revoked or suspended may not so act without the written approval of the minister.
(14) A person who assumes to act as an agent without the licence required by this section, or while his or her licence as such is suspended, is guilty of an offence.
(15) The minister may refuse to issue a licence to or renew the licence of or may suspend for a stated period or without limit of time or revoke the licence of a person who is a non-resident of the province unless that person can furnish evidence satisfactory to the minister that he or she is an actually licensed insurance agent, subagent or broker in the jurisdiction in which his or her principal place of business is located.
(16) For the purposes of subsection (15), a non-resident is a person who has not been ordinarily resident in the province for a period of at least 12 consecutive months immediately preceding the date of application for a licence under subsection (2).
(1) An insurer and an officer, agent or employee of an insurer shall not, directly or indirectly, pay or allow, or offer or agree to pay or allow, a commission or other compensation or anything of value to a person for acting or attempting or assuming to act as an agent in respect of insurance in the province or for having or claiming or appearing to have an influence or control over the insured or solicit insurance unless that person holds at the time a subsisting agent's licence or is a person acting under the authority of subsection 4(12).
(2) Subsection (1) shall not affect the payment or allowance by an agent of part of his or her commission to agents outside the province.
(3) An insurer or agent shall not pay or allow, or agree to pay or allow, directly or indirectly, a commission or compensation instead of commission to an agent or subagent in connection with an application or contract for insurance on the life of the agent or subagent or of a member of his or her immediate family until the agent or subagent has within 12 calendar months negotiated at least 3 contracts of insurance on the lives of persons other than those of the classes mentioned in this section, and the 1st premiums have been fully paid to the insurer.
(4) An insurer or agent shall not pay or allow or agree to pay or allow a commission or compensation instead of commission to an agent or subagent in connection with an application or contract of insurance, other than life insurance, in respect of any property or risk with which the agent or subagent is directly associated until the agent or subagent has within 12 calendar months negotiated additional contracts of insurance, other than life insurance, involving at least an equal premium value in respect of property or risks with which he or she is not directly associated and the premiums have been paid in whole or in part.
(5) For the purposes of subsection (4), an agent or subagent is considered to be directly associated with
(a) the property covered by an application or contract of insurance if the property is owned by him or her or by a member of his or her immediate family or by a company of which he or she is a director, officer or employee; and
(b) the risk covered by an application or contract of insurance if the risk is one in which he or she or a member of his or her immediate family or a company of which he or she is a director, officer or employee is financially interested.
(6) The minister may refuse to renew the licence of an agent or subagent if he or she has failed to negotiate the additional contracts of insurance as prescribed by subsections (3) and (4) within the period of 12 months stated in those subsections.
(7) The minister's decision is final as to whether or not the property or risk covered by an application or contract of insurance is one with which an agent or subagent is directly associated.
(8) Unless the minister otherwise decides, subsections (4), (5), (6) and (7) are not applicable to agents or subagents licensed to carry on business in Newfoundland before June 20, 1963.
(9) Nothing in this Act shall affect a payment by way of dividend, bonus, profit or savings which is provided for by a contract of insurance or be construed so as to prevent an insurer compensating an actual salaried employee of the head or a branch office of the insurer in the province in respect of insurance issued by the employing insurer upon the life of that employee or so as to require that that employee shall be licensed as an agent to effect that insurance.