British Columbia's Restricted Insurance Agency Licence Starts January 1, 2027: Car Dealers and Other Incidental Sellers Face a C$1,000 Application Fee, a Designated Representative and a March 31 Deadline

British Columbia is introducing a new category of insurance licence for businesses that sell insurance as a side activity. The Restricted Insurance Agent Licence Regulation comes into force on January 1, 2027, and the Insurance Council of BC, the province's insurance regulator for licensing, will issue and oversee the licence. The details below come from the Council's own question-and-answer page about the Restricted Insurance Agency, or RIA, licence. That page says some details, including the full list of eligible business types and insurance products, are set out in the regulation or on pages not reproduced in it, and the application process itself was described as not yet available. This article therefore reports only what the page states.

What the licence is for

The RIA licence lets trained representatives sell insurance under the agency's licence. It is aimed at non-insurance businesses that sell insurance incidental to their ordinary operations. A car dealership that offers insurance related to a vehicle purchase is the clearest example, and the Council states that all motor vehicle dealers qualify, including powersport dealerships. To be eligible, a business must fall within one of the business types listed in the regulation, and the insurance it sells must be among the designated products the regulation lists. Businesses whose primary or only activity is insurance are not eligible, and neither are businesses that want to sell insurance types the regulation does not include. They would need a different licence.

Dates that matter

January 1, 2027: the regulation takes effect.

March 31, 2027: businesses that have been selling insurance incidentally under earlier exemptions must apply for an RIA licence by this date if they want to keep selling insurance.

December 31, 2027: the restricted travel insurance agency licence is discontinued after this date, and former holders cannot conduct insurance business after it. Holders of that licence must transition to the RIA licence. Holders of other product-limited licences can keep and renew them but cannot make changes, and the Council encourages eligible holders to move to the RIA licence.

The designated representative

Every RIA must appoint a designated representative, who must be an officer, director, partner or sole proprietor of the business. The designated representative acts for the business, oversees its insurance activities and is responsible for making sure it complies with the rules. The regulation does not say where the representative must be located, but the person must ensure proper supervision and adherence to the licence conditions.

Before a person can be appointed, they must complete a mandatory designated representative course. A business needs at least one representative who has completed it before applying. The Council describes it as about four hours long, self-paced and possible to complete over several sessions. Access lasts 60 days from registration; if the course is not finished in that time, access expires and the fee must be paid again. The course fee is C$320, which is separate from the application fee, non-refundable and non-transferable. A completion certificate can be downloaded, but it does not have to be submitted because the Council verifies completion itself.

Fees and insurance

The application fee is C$1,000. The annual fee depends on the number of representatives operating under the licence, but the page does not give the amounts and points to another Council page. Errors and omissions insurance is required for insurance activities. That is professional liability cover that pays if a seller's mistake harms a customer. The Council notes that some businesses may already have such cover and suggests consulting their insurer, with detailed requirements set out on its errors and omissions page. As a simple illustration, done for this article, a business that applies with one new designated representative would pay at least C$1,320 in the two fees the page states (C$1,000 plus C$320) before any annual fee, insurance premium or training costs.

Training for people who sell

Employees and non-employee agents who sell insurance must take accredited training for the products they sell. Any insurance training provider can apply for accreditation, and applications opened on October 26, 2026. A provider must submit course materials, an application form and a checklist, and courses must meet performance requirements covering knowledge, technical abilities and business skills. Accreditation lasts four years, after which providers must reapply. Accredited courses will be listed on the Council's website as they become available. Because accredited courses may not exist by January 1, 2027, the Council says it may initially issue a term RIA licence to applicants whose representatives completed non-approved training that still meets the performance requirements, provided all other qualifications are met.

What businesses should do now

The Council's suggested next steps are to review the program information, assess whether the business can meet the qualification and ongoing requirements, prepare business information and the qualification steps, and apply when the licence becomes available. Questions go to ria-licence@insurancecouncilofbc.com.

What the page does not say

The page does not set out enforcement or discipline for RIA licensees. It states only that the designated representative must ensure compliance and that the business must operate within the licence conditions. It does not list the eligible business types or products, and it does not give the annual fee schedule. Businesses should read the regulation and the Council's other pages before relying on this summary.

Limits

This article summarizes a regulator's Q&A page and is not legal advice. Rules and fees may change, and affected businesses should confirm current requirements with the Insurance Council of BC.