The Harmonized Life Licence Qualification Program (HLLQP) is 120 hours of course content. There are a total of 8 exams to write. The certificate level consists of 4 exams, and once all 4 are passed successfully you can then apply to write the last 4 exams for licencing. Once you have passed the licencing exam and before you can apply for your licence with the Alberta Insurance Council – an advisor must find a ‘sponsor’ to facilitate licencing. This can be done two ways, applying for regular employment through a captive agency or becoming an independent broker and securing a contract through a Managing General Agency (MGA).
The MGA acts as a middle person between all the insurance carriers and the advisor. To obtain a contract with an MGA an advisor goes through a comprehensive background check to ensure there is no history of criminal activity, fraud and the likes. Additional measures include credit checks and Canada Revenue Agency (CRA) reviews, certification, employment and academic verifications too. As the middle person the MGA wants to ensure it is contracting sound advisors with sound backgrounds and financial footing. Especially if providing advice in the area of Insurance and Finance.
There are additional background checks that are conducted on a ongoing basis. Once contracted, the Alberta Insurance Council then requires the advisor to obtain his sponsorship with a selected insurance carrier. As a broker, such as my case, you are not limited to one.
The insurance company then repeats the above background checks before granting the advisor with a contract. Once a contract is obtained the advisor can then apply for a Licence with the provincial regulator which then conducts its own review of the applicant to ensure there are no conflicts of interests or other areas of concern. To maintain this licence an advisor must stay current with industry changes by obtaining continuing education credits. There are annual targets for this. If you haven’t already – please also read ‘Am I graded on what I sell my clients’?