The AIC receives many inquiry calls relating to the topics noted below. We have provided answers to most of the common questions asked by Agents, Brokers and Adjusters on the related topics.
Should you have an inquiry which is not addressed below please email us and we will be pleased to respond to your question.
Q: What amount of errors and omission insurance must be carried?
A: This coverage is identified by regulation an extract of the current requirement is included below
35(1) The errors and omissions insurance required in respect of a business that holds a certificate of authority, other than a restricted certificate, must provide coverage of at least $500 000 per claim with a maximum policy payout for all claims of $2 000 000 in a policy year, and the policy must be issued in the name of the business and the insurance must provide coverage for the employees and independent contractors of the business who hold certificates of authority.
(2) The errors and omissions insurance required in respect of a business that holds a restricted certificate must provide coverage of at least $500 000 per claim, with a maximum policy payout for all claims in a policy year determined by multiplying $500 000 by the number of employees of the business who act or offer to act as insurance agents, to a maximum of $2 000 000.
Q: How do I prove to the AIC that I have the required coverage?
A: Every agent or agency must provide a certificate of insurance in the form required by the AIC.
The Alberta Insurance Council Certificate of Insurance form is available here.
Q: What information about my E&O policy am I required to provide?
A: The information required is:
- the policy number,
- carrier name,
- effective date and
- expiry date.
Check with your agency or insurance company for that policy information if you are covered under a master policy or check with your broker.
Q: When I add my policy information, the E&O carrier name I am trying to select is not appearing in the drop-down. What do I do?
A: It is possible that you are trying to select the name of the brokerage that sold you the policy and not the E&O carrier name. The E&O carrier must be an insurance company that is licensed in Alberta. Please check with the broker that sold you the policy.
Q: What happens if my errors and omissions coverage is cancelled or not renewed?
A: The regulation requires the issuer of the coverage to provide 30 days’ advance notice if coverage is canceled or not renewed. If a replacement certificate is not received by the AIC the certificate of authority is suspended until proof of coverage is provided. If this occurs the certificate-holder will be required to complete a new application and pay a fee for reinstating the certificate.