In order to offer auto insurance in Ontario, you must first obtain a general insurance broker license. You must pass the RIBO Entry Level 1 exam to do so.
Even if you simply intend to sell auto insurance, you will need to study a variety of insurance principles in order to pass the exam, including house insurance, commercial insurance, liability insurance, and automotive insurance.
On our website, you can find RIBO 1 study resources.
All that’s left to do now is apply for your license and look for a job at an insurance brokerage after you’ve registered for and passed the exam.
There are many different insurance brokerages out there that specialize in various areas of insurance, so make sure you select one that specializes in personal insurance and auto insurance contracts.
How do I get my insurance license in Ontario?
An applicant must meet the following standards in order to get a license:
- Fill up a General Insurance Agent application, attach any supporting documents, and pay the $150.00 application fee.
- Understand the legislation governing the licensure of general insurance agents in Ontario.
How do I get my OTL license in Ontario?
Taking the OTL Exam and registering for it
- You must pass a qualifying exam known as the ‘Other Than Life (OTL) Agent’s Exam’ before applying for your general insurance agent license in Ontario.
- One of the conditions for receiving the Agents Licence is passing the ‘Other Than Life’ (OTL) Agent’s Exam.
Is insurance broker exam hard?
If only 30% of job candidates made the cut for a new job, most of us, in any line of employment, would see it as a red flag.
The pass rate for the Level 1 insurance licensing test is a source of worry for Alberta insurance companies.
“You don’t generally find folks with a generic Level 1 license in a local town.” “In the city, you have a lot more competition,” Western Financial Branch Manager Roxanne Clark explained.
“About three and a half years ago, the Alberta Insurance Council changed their exam.” Clark stated, “They made it really difficult for us. It plummeted from a nearly 80% pass rate to a 36% pass rate “as it is at the moment.”
She claims that insurance firms in Alberta are working hard to figure out how to remedy the problem, whether it’s by modifying the test or providing easier-to-understand study materials to examinees.
“We’ve lost some terrific people because they couldn’t pass that test,” Clark said. “This is a difficult test.”
Clark advises that if you want to work in the insurance industry, you should study hard and prepare for the Level 1 license.
Who is the highest paid insurance agent?
Gideon du Plessis missed his tenth grade and did not attend college. He is now the world’s highest-paid insurance agent, with annual commissions of more than Rs 7 crore (Rs 70 million).
How do insurance reps get paid?
Insurance agents are paid on commissions, but they may also be paid a salary to assist them in growing their book of business. Captive agents often receive an initial compensation of between 5% and 10% of the value of the home and auto policies that they sell.
Then, when their client renews the policy, they receive recurring commissions. Captive insurance agents’ renewal commissions tend to be lower than their original commission.
Captive agents are eligible for performance bonuses on a regular basis in addition to commissions. Bonuses might account for 20% or more of a captive agent’s earnings.
Do insurance agents make good money in Canada?
In Canada, the average annual income for an insurance agent is $47,750, or $24.49 per hour. Entry-level jobs start at $40,000 a year, with the most experienced workers earning up to $78,000.
Is insurance sales a good career in Canada?
The national occupation classification code (NOC) for this position in Canada is 6231.
Insurance agent, insurance broker, and insurance sales representative are just a few examples of professional titles and responsibilities in this field.
The highest hourly average (median) wages are earned in Calgary, Alberta, at $36.90 per hour, and the lowest average (median) wages are gained in Halifax, Nova Scotia, at $20.19 per hour, according to the latest numbers.
The average full-time annual income for this job is between $45,000 and $65,000.
Insurance agents and brokers are projected to have high job prospects in Canada. According to government data, the labor market for this occupation will remain balanced in the foreseeable future.
How hard is the OTL exam?
The OTL is a two-hour closed-book test with 100 multiple-choice questions to be solved in that time. To pass, students must achieve a score of 75%.
The exam is mainly weighted toward personal insurance (think: home and auto), with the following breakdown:
- Industry Knowledge (30%): This component includes topics such as ethics/professionalism, risk management, claims handling, insurance contracts, and insurance laws (Insurance Act).
- Habitational Insurance (32%), which covers various habitational insurance policies, endorsements, and liability insurance, among other things.
- Business Insurance (5%), which includes commercial property and liability insurance, is a modest sector (CGL).
- Automobile Insurance (33%), which covers auto insurance policies, endorsements, and terms and conditions.
It’s fine if you don’t pass the first time. You are free to rewrite as many times as you need.
What is the difference between OTL and Ribo?
The RIBO (Registered Insurance Brokers of Ontario) and OTL (Other Than Life) licenses both allow you to sell house and vehicle insurance in Ontario, but the OTL qualifies you as an Insurance Agent, and the RIBO qualifies you as an Insurance Broker.
So, what’s the difference between an insurance agent and a broker?
An Insurance Broker is someone who has been given permission to obtain insurance quotes on behalf of an insured (client) or potential customer. A broker is not an employee of an insurance business. Brokers will approach multiple insurance firms as the insured’s representative in order to obtain quotes and coverage to sufficiently insure the client’s risks. Ontario Insurance Brokers Association
An Insurance Agent is a person who has signed a ‘agency contract’ with a specific insurance company in order to sell insurance for that specific firm. An agent is an independent contractor, not an employee of the insurance firm. Unlike a broker, the agent has the authority to tie coverage (legally obligate the insurance company to provide coverage according to the terms and conditions as bound). – Ontario Insurance Brokers Association
There you have it: there are two types of insurance license tests in Ontario, and ILScorp can help you prepare for either one.