When in Ontario, you can get several types of insurance. With RIBO licensees increasing demand year after year, Ontario insurance brokerages are taking on more workers than ever before. As more brokerage positions open up, it is becoming easier to do whatever you wish within the industry. However, getting that first important step in earning your RIBO insurance license takes some serious work.
The path to your RIBO will vary depending on whether you have previous experience in the industry or not. Still, this guide is meant to help everyone with information about how to get RIBO license here.
What is RIBO Insurance Licensing?
An insurance broker or an agent can sell different types of insurance, such as life insurance or car insurance. These clients are referred to as direct clients and can be purchased by brokers directly. The broker will need to contact the insurance company, place the order for their client, and wait for it to be filled.
But what happens when clients want something not available through direct purchase? What if they just purchased a new home and want homeowners insurance?
In such cases, brokers are intermediaries between the client and the insurance company. Instead of placing an order for their client, brokers will need to find an insurer that offers this new line of coverage.
This is where RIBO comes in. RIBO stands for “registration in broker’s office.” The license allows an insurance broker to act as an intermediary when seeking out new types of insurance. That is why this is important, considering most insurance companies only sell their products through intermediaries/brokers.
What is the RIBO Insurance Licensing Process in Ontario?
Obtaining RIBO is not easy or cheap. It takes time to get there. First of all, you need to meet the insurance company’s underwriting standards which could be different for each company. Some companies might not want certain types of risk like high-risk occupations, such as police officers or construction workers.
Once an insurance company decides that it would like to hire you as an intermediary, you must pass the following exams to get a RIBO license here:
Basic Financial & Insurance Services Exam
- Fundamental Life Underwriting Exam
- Fundamentals of Insurance Practice Exam
- General Insurance Business Exam
- Investments Fundamentals Exam (optional)
These exams all need to be passed within a specific time limit, or you risk having to retake them at another date. Some insurance companies also have different requirements to be met before allowing you access to their products, such as compulsory courses or training.
More about RIBO
Once you have obtained your RIBO license, it is up to you to decide if you want to work for a brokerage or be self-employed.
It lasts for two years from the date you pass all exams and obtain your registration certificate. However, you must maintain your RIBO by passing all required exams or having them waived with proof of equivalent experience.
It is not easy to get, and keeping it will be a challenge. If you do not pass the relevant exams before they expire, you need to wait another year before taking them.
You will need to work for someone else (with retained compensation) to get your RIBO. This means that you cannot act as an intermediary without the written consent of your employer. It would be best if you also had errors and omission insurance.
You can choose any insurance company willing to hire you, even if it is not the one where you obtained your RIBO. However, if you decide to change insurance companies, later on, the new company might require you to retake their exams, so be wary of this before signing up.