Understanding the Difference Between a Life/A&S Licensee and a General Insurance Licensee in Canada
Insurance professionals in Canada must hold specific licenses to sell and service different types of insurance products. Two common licensing categories are the Life and Accident & Sickness (A&S) Insurance License and the General Insurance License. While both licenses pertain to the insurance industry, they serve distinct purposes, have different regulatory requirements, and cater to separate markets. Understanding the differences between these two licenses is crucial for anyone considering a career in the insurance sector.
Life and Accident & Sickness (A&S) Insurance License
A Life and A&S Insurance License allows an individual to sell life insurance and accident & sickness insurance policies. These policies typically provide financial protection in case of death, disability, critical illness, or medical expenses. This license is suitable for professionals who wish to advise clients on long-term financial security and health-related insurance products.
Types of Insurance Covered
- Life insurance (term, whole life, universal life)
- Critical illness insurance
- Disability insurance
- Health and dental insurance
- Long-term care insurance
- Travel insurance (in some provinces)
Regulatory Requirements
Each province and territory in Canada regulates life and A&S insurance licensing. The general process includes:
- Completing an approved pre-licensing course (e.g., Life License Qualification Program – HLLQP).
- Passing a provincial licensing exam.
- Undergoing a background check.
- Applying for a license through the provincial regulatory body.
Continuing Education (CE) Requirements
To maintain their license, Life and A&S Insurance Licensees must complete continuing education (CE) credits as required by their respective province. The CE requirements vary, but typically include:
- A set number of CE hours every renewal period (e.g., 30 hours every two years in Ontario, with at least 10 hours dedicated to A&S if selling A&S insurance).
- Ethics and compliance-related CE courses.
- Courses approved by provincial insurance councils.
General Insurance License
A General Insurance License, also known as a Property & Casualty (P&C) License, enables an individual to sell insurance that covers property, liability, and casualty risks. This includes policies for personal and commercial clients.
Types of Insurance Covered
- Auto insurance
- Home insurance
- Commercial property insurance
- Liability insurance
- Business interruption insurance
- Marine and aviation insurance
- Surety bonds
Regulatory Requirements
Like life and A&S insurance, general insurance is regulated at the provincial level, and licensing requirements differ across Canada. The general process involves:
- Completing a pre-licensing course (e.g., Fundamentals of Insurance or CAIB Level 1 in some provinces).
- Passing the provincial licensing exam.
- Applying for a license through the relevant insurance regulator.
- Gaining employment with a licensed insurance brokerage (in most cases).
Continuing Education (CE) Requirements
General insurance licensees must also complete CE credits to renew their licenses. CE requirements differ by province, but common expectations include:
- 8 to 15 hours of CE credits per year (e.g., in Ontario, licensees must complete 8 to 15 hours annually depending on their license level).
- Courses must be relevant to general insurance and regulatory compliance.
- Ethics and professional development courses may be mandatory.
Key Differences Between Life/A&S and General Insurance Licensees
| Feature | Life/A&S Insurance License | General Insurance License |
|---|---|---|
| Primary Focus | Life, health, and disability insurance | Property, casualty, and liability insurance |
| Regulatory Body | Provincial insurance councils (e.g., FSRA in Ontario) | Provincial insurance councils (e.g., Alberta Insurance Council) |
| Licensing Exam | LLQP Exam | Provincial General Insurance Exam (varies by province) |
| Continuing Education | Typically 30 hours per renewal cycle |
Typically 8-15 hours per year |
| Work Environment | Often tied to financial planning, independent agencies, or insurance companies | Brokerage-based, insurers, and independent agencies |
Conclusion
Both Life/A&S and General Insurance Licenses play essential roles in the Canadian insurance industry, yet they cater to different client needs. Life/A&S insurance focuses on financial security and health-related protection, whereas General Insurance covers tangible assets and liability risks. Licensing requirements, including education, exams, and continuing education, differ between these fields, ensuring that professionals remain knowledgeable and compliant. Choosing between these two paths depends on an individual’s interests and career aspirations in the insurance sector.!
