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Generative AI
Artificial intelligence (AI) raises many intellectual property (IP) issues.
Canada | Publication | April 3, 2023
An Ontario licence requires an insurance brokerage to navigate complex compliance issues, including when the insurance brokerage wishes to conduct (or already conducts) other business activities. More specifically, an Ontario licence permits a company to conduct insurance brokerage activities in the province; however, the company becomes regulated in such a way that its other business activities are subject to the approvals of the Registered Insurance Brokers of Ontario (RIBO).
We understand that not all brokerages operating in Ontario are aware of the compliance requirements around “such other business” in Ontario Regulation 991. This legal update reminds insurance brokerages they must consider all of their commercial activities, including those that fall outside the scope of their activities as insurance brokerages, to ensure compliance with Ontario legislation and regulations.
Ontario Regulation 991 provides that RIBO’s qualifications and registration committee (the Committee) has the authority to restrict a licenced insurance brokerage’s other business activities. For example, section 6 of Regulation 991 restricts the other business activities of an incorporated insurance brokerage, unless the Committee grants its approval for those activities. The purpose of the restriction is to prevent real or perceived opportunities for coercion and conflicts of interest with respect to consumers.
When an insurance brokerage applies for approval of its other business activities, the Committee makes its determination on a case-by-case basis. Its decision relies on a number of factors, including the following:
Non-compliance with Ontario Regulation 991 can lead to a variety of issues for an insurance brokerage, including licence suspension. Therefore, insurance brokerages must be aware that their other business activities are subject to the Committee’s approvals when they hold an Ontario licence, in order to prevent unnecessary compliance issues and costs.
As stated above, we understand that not all brokerages operating in Ontario, and elsewhere in Canada, are aware of the complex compliance requirements associated with the various brokerage licences. An insurance brokerage operating in Canadian jurisdictions should discuss compliance requirements with legal counsel, including the requirements in Ontario at issue in this legal update.
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Artificial intelligence (AI) raises many intellectual property (IP) issues.
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We are delighted to announce that Al Hounsell, Director of Strategic Innovation & Legal Design based in our Toronto office, has been named 'Innovative Leader of the Year' at the International Legal Technology Association (ILTA) Awards.
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On 6 September 2022, the European Commission (EC) prohibited Illumina’s acquisition of Grail, bringing to an end the administrative stage of a legal saga that has attracted interest beyond competition law specialists.
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