CAILBA COMPLIANCE TOOLBOX

CAILBA’s goal in developing the Compliance Toolbox is to assist CAILBA members in meeting their obligations and mitigating risk, while raising CAILBA’s profile and credibility among stakeholders.

In December 2014, we updated the Compliance toolbox to reflect significant changes in the regulatory environment and to make it far more user friendly.

CAILBA’s goal in developing the Compliance Toolbox is to assist CAILBA members in meeting their obligations and mitigating risk, while raising CAILBA’s profile and credibility among stakeholders.

In December 2014, we updated the Compliance toolbox to reflect significant changes in the regulatory environment and to make it far more user friendly.

WHAT’S NEW

  • All insurers are required annually to collect information using the CLHIA Standardized MGA Compliance Review Survey, (updated and re-launched in August 2014) or to ask MGAs to certify that the Survey on file is current. We’ve structured the Toolbox to follow the order of the Survey.
  • CLHIA’s new guideline for its members and a reference document MGA Compliance: A Risk-based Approach for Compliance Programs in the MGA Channel are effective January 1, 2015. MGAs are expected to adopt risk-based approaches to their compliance activities, including enhanced screening, monitoring and reporting and investigating Advisors. We have updated the guidance, tools and templates that address these topics. CLHIA introduced two new, important forms that must be used in screening Advisors:
  • Advisor Screening Questionnaire (ASQ), replaces the Application for Contract or Sponsorship. This is a mandatory form and should not be modified. It asks whether the Advisor has an AML regime, Privacy Program, written disclosure statement and follows a needs-based selling process. You are not expected to vet Advisor material, but if any Advisor is missing compliance requirements, you should point them to tools and templates you/insurers/Advisor associations make available and notify them that they have no more than 3 months to adopt compliant practices. If the Advisor cannot certify to compliance after 3 months, you should discuss next steps with the insurers with which the Advisor holds a contract.
  • Screening Confirmation Request (SCR),allows you to approach insurers for information on an Advisor prior to contracting. Insurers have committed to a turnaround time of 5 business days.

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CAILBA members have access to our complete compliance toolbox.

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