A “get to know your client” policy is now enacted and from the date the law comes into effect. Brokers and insurance companies have 1 year to provide in their clients renovations, a new questionnaire (which is standard for all insurance companies – just the logo changes). If you have several policies, you only need to fill one out, unless you have several insurance brokers or companies. The questionnaire asks the client general information questions and requires the client to sign it.

This policy will not affect you much, unless you pay more than $10,000 a year in insurance premiums, then you will be required to give your broker and insurance company a financial profile (does not have to be audited). Like clients under $10,000 this information is placed in your file, which is confidential, unless a pertinent authority solicits the file.

If you are a client that has a corporation and have bearer shares, the new regulation dictates you must specify who is the real “beneficiary owner” of the company. This information will not be verified when you buy your policy, but if inconsistent with the truth if a situation where to arise, then it could serve as proof that the person was buying the insurance for other motives.

The new legislation regulates insurance companies, reinsurers, brokers, adjusters, and insurance administrators.  Who are required by law to report any suspicious activities. Fines for insurance brokers go from $1,000-50,000 and 3 to 12 years of prison and for insurance companies from $5,000-1,000,000 and 25 to 30 years of prison time.

Please note this measurement applies to all, not only new clients, so be patient with your insurance broker when he/she asks for this additional requirement. We are regulated under law to keep confidential all of our clients information.