Conflict of Interest Guidelines for Additional Occupations
Section 371(7) of the Insurance Act of Manitoba, which related to “sole occupation”, was repealed under Bill 39. This has been replaced by a Conflict of Interest Guideline. All levels of insurance agents/adjusters may sell insurance full or part-time provided there is no conflict of interest. Prior to commencing any other occupation or employment, you must report the other occupation or employment to the Insurance Council of Manitoba. Upon review, if required, Council will be in contact with you to request detailed information regarding your additional employment.
The Council’s Conflict of Interest Guidelines are best understood in this overall context. They represent legitimate, good faith efforts to regulate the privilege of carrying on business as an insurance agent/adjuster in the Province of Manitoba. As with its other rules and procedures, the Council discharges its statutory function in a manner that is consistent with the paramount objective of providing for consumer protection and the priority of policy-owner interests. Part of this process entails developing safeguards to limit the range of circumstances where there arises the possibility that a consumer will be subjected to a form of undue influence. That policy objective involves the need to restrict the licensing of individuals who also work in certain occupations.
The resulting limitation on the privilege of carrying on business as an insurance agent/adjuster is neither discriminatory nor arbitrary. To the contrary, it simply reflects the reality that people working in certain occupations enjoy a relationship based on a number of factors which could give rise to the possibility of an undue influence situation. Such factors include, but are not limited to:
- a position of trust and integrity where significant deference is afforded;
- a position of authority;
- an ability to assert power or authority, or to award or curry favour;
- independent access to information and data which would not otherwise be readily available.
Ultimately, as with all potential conflict of interest scenarios, the Council must be concerned not only with actual conflicts but also with potential, apparent or perceived conflicts.
The restricted occupations MAY include, but are not necessarily limited to, those who could be considered capable of using undue influence, most notably, an officer or employee of a deposit-taking institution or those involved in lending money (banks), doctors, nurses, other health care professionals, lawyers, accountants, law enforcement officials, immigration consultants, members of the clergy and government employees. Agents/Adjusters also should not directly occupy office space with any person engaging in a restricted occupation.