Apr 28, 2014 | News
Canadian home buyers with small downpayments face a hike in mortgage insurance premiums next week. But market watchers say the increases likely won’t be enough to slow sales in what has lately been a hot housing market in many areas, helped in large part by historically low mortgage rates.
In February, CMHC announced it would hike premiums for default insurance by an average of 15 per cent effective May 1. The increase would hit buyers who have a downpayment of less than 20 per cent. Soon after CMHC served notice of the increase, private sector competitors Genworth Canada and Canada Guaranty matched the increases.
The increases will only affect new policies, not mortgages already in existence. The highest premiums are paid by those who put down just five per cent of the home’s purchase price. At that level, the mortgage insurance premium rises from 2.75 per cent to 3.15 per cent.
On a $450,000 mortgage at 3.49 per cent amortized over 25 years, the insurance fee would rise from $12,375 to $14,175. While $1,800 sounds like a big increase, it can be financed over the life of the whole mortgage , so the monthly cost of the insurance premium in this case would rise by less than $9 a month. CMHC estimates that for the average buyer needing insured financing, the new rates will add about $5 a month.
To be eligible for the lower mortgage insurance premiums, lenders have to submit their requests for mortgage loan insurance before May 1. The closing date of the home purchase is not the determining factor.
Also, as of May 30 CMHC will no longer insure purchases by self-employed workers without third party income validation, and will offer no insurance Canadians seeking to purchase a second property.
Self-employed Canadians can still qualify for CMHC insurance, but must be able to provide proof of their income levels, the agency said. CMHC estimated the changes would effect less than three per cent of the units it insures. Given the limited use of these products, their discontinuation is not expected to have a material impact on the housing market, the agency added.
CIBC deputy chief economist Benjamin Tal said the move was not a surprise, adding that more changes are likely coming to reduce the agency’s footprint in the market.
The Finance Department has tightened mortgage rules on four separate occasions in the past several years – along with requiring stricter enforcement and management of loans – in an effort to weed out marginal buyers and excessive speculation in the housing market.
Former finance minister Jim Flaherty had also expressed concern that CMHC had become too large a player in the market, needlessly exposing Canadian taxpayers to risk should there be a housing crash. The agency currently has about $560 billion in outstanding mortgage insurance on its books.
Flaherty and the Bank of Canada have for several years expressed concerns that too many Canadians risked becoming over-extended in the mortgage markets, especially once interest rates begin to rise.
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Apr 25, 2014 | News
ILScorp is pleased to let you know that your subscription to our Life insurance continuing education bundle now includes the following new course: Comprehensive Estate Planning with Life Insurance.
Life insurance is not easy to sell and while many try, few succeed in growing healthy, profitable careers. There is often a trade-off between people skills and technical skills. You may notice that successful fellow agents weak in technical skills probably have strong people skills and vice versa. Certainly there is a required combination of human and technical aptitudes to manage an estate-planning file.
This course will assist with the basic estate planning skills by covering the following modules:
- The role of the Life Insurance Agent;
- The Estate Planning players;
- Other common strategies with Life Insurance;
- Death & Taxes; Tax considerations;
- Estate Planning Topics;
- Corporate Estate Planning strategies;
- Charitable Giving and Bequest Planning;
- Trusts.
This course will explain the technical and people skills needed for successful career in Life Insurance. This course includes nine lessons with interactive videos, downloadable texts, chapter quizzes and a final exam.
This course is accredited in AB, MB, SK, BC for 2 CE hours. It is included in our Life & AS subscription and available f0r individual purchase for $159
Apr 23, 2014 | News
If a manager or supervisor is told that one employee is bullying another, they must address the issue. But before company leaders can confront the person responsible, they need to identify that bullying has indeed taken place and confirm the facts. The following is a basic three-step plan of action:
Step 1: Identify what is considered bullying in the workplace. Workplace bullying can be described as repetitive, deliberate verbal, non-verbal and even physical actions directed against a co-worker or subordinate for the sole purpose of dominating and controlling. Such behaviour is damaging and can result in severe psychological or physical harm to the victim.
Step 2: Confirm the facts and develop a plan to confront the bully. Once bullying has been identified, it is the supervisor/manager’s responsibility to confirm the facts, prepare documentation, and develop a plan to confront the bully. Confirming facts will help you understand the extent of damage that may have been done to the victim. If there are enough facts to confront the bully, prepare a plan.
Consult any appropriate partners such as human resources personnel and determine what consequences – anything from written discipline to termination – may be considered. The plan must be sensitive to the needs of the victim, who may need support through an employee assistance program.
Step 3: Schedule a meeting to confront the bully. Determine the time and location of the meeting, as well as who will be involved, and prepare a script. In a private space, facilitate the following conversation:
- Explain the purpose of the meeting. In a clear and assertive tone, explain that the employee has been linked to bullying and that this conversation is to address that. For example: “John, I have asked to meet with you to discuss the following facts … and our position on this matter. Do you understand why you’re here?”
- Verify with the employee why they are there. This gives the individual time to understand the seriousness of the conversation and allows the leader to evaluate how the employee is going to manage their emotions. If the employee or leader becomes overly emotional, stop the conversation and start again only when everyone is calm.
- Present the facts and concerns, and outline the consequences. This is to ensure that the employee understands that this is not a negotiation; it’s a reporting of the facts. The ultimate goal is for the employee to accept responsibility for his or her actions. Facts: “John, you were observed … ” (Share the facts, history, evidence and the organization’s position.) Concerns: “John, bullying behaviour is not acceptable in this organization and it will not be tolerated. Do you understand the concern and expectation to stop any behaviours that could be perceived as bullying?” Employee’s response: Give the employee a chance to admit responsibility, ask questions about what they need to do, show remorse, apologize and commit to changing their behaviour. Consequences: Inform the employee how the matter will be dealt with. A union representative may need to be involved.
- Frame an action plan. Outline the steps the employee must comply with to continue their employment. “John, the first step is to stop bullying X immediately. You will be expected to …” Leave nothing to assumption. Get the employee to agree to those expectations.
- Review the plan. Review the expected behaviour, how the plan will be monitored, any disciplinary action, the impact on the employee’s record, future consequences if there is a relapse, and the frequency of follow-up. A written plan may help the employee follow the guidelines.
Effective leaders must embrace the challenge of making sure their workplace is free of bullying. ILScorp offers additional resources to help both employers and employees prevent and manage bullying in the workplace, and ensure compliance with workplace legislation.
Ontario, Manitoba, Québec and Saskatchewan have already introduced legislation against bullying and B.C. recently enacted Bill 14 [Workers Compensation Amendment Act] to address the effects of bullying at work. Become compliant with existing laws. Complete ILScorp’s “Understanding Workplace Bullying & Tools for Safeguarding an Organization from Bullying Behaviour” courses.
This course is included free of charge as part of ILScorp your group subscription. This course is General and Adjuster CE accredited, however ILScorp recommends that all employees receive this training for law compliance.
Excerpted from the Globe and Mail, written by Bill Howatt, the president of Howatt HR Consulting and founder of TalOp, in Kentville, N.S.
Apr 22, 2014 | News
Flooding worries are on many minds following the dramatic events in Sherbrooke, Quebec last week and as rain starts to fall in Alberta this spring. But homeowners looking to insulate themselves from flood damage can’t look to Canadian insurance companies for help.
According to the Insurance Board of Canada, 61 per cent of Canadians think their home insurance covers them in case of overland flooding. Sixty one per cent of Canadians are wrong.
The IBC’s Pierre Babinksy says insurers in Canada don’t offer protection against flooding because they think floods, unlike fires, earthquakes or hurricanes, are what he calls “certainties.”
“It’s very difficult to assess the risk in order to quantify it and in order to capitalize accordingly cover any damages that would be incurred,” he says.
However, flooded homeowners can usually seek assistance from their municipalities, which are in charge of distributing federal and provincial flood aid. Babinsky does encourage homeowners to contact their insurers in all cases of water damage in order to see if they are eligible for reimbursement.
Excerpted from CJAD News
ILScorp has partnered with the Restoration Industry Association to provide a Basic Water Loss Training Course. This entry-level online training program addresses basic, broad knowledge for those interested in the practice of water damage restoration. One of the main goals of a water loss restorer is to return safe indoor environments to buildings that have been affected by a water intrusion. This online course is excellent training for new water loss field staff, administrative, HR, marketing staff and restoration professionals.
Visit us at www.ilscorp.com or call us a 1-800-404-2211 to join the more than 23,000 other Canadian insurance professionals who are learning with ILScorp every year.
Apr 21, 2014 | News
Spring brings the approach of several CE deadlines for insurance agents across Canada. Now is the time to get working on your mandatory CE hours and avoid the last minute rush.
The Continuing Education deadline for insurance agents in BC and Manitoba is May 31, and Alberta’s requirements must be met by June 30 this year. In Saskatchewan, your deadline varies based on your license renewal date.
ILScorp is ready to help, with continuing education catalogues feature hundreds of hours of accredited courses that you can complete anywhere you have an internet connection.
The ILScorp general insurance catalogue offers more than 300 hours (160 courses) of accredited Continuing Education training, so you’ll find courses that are of interest and relevance to you and your business. More than 50 courses have recently been updated and re-accredited. Six-month subscriptions, which provide access to the entire general insurance catalogue are only $185. Discounts for groups of five or more are available.
ILScorp’s Life / A&S course catalogue includes more than 75 CE courses (185 hours). A new online Professional Liability course: Introduction to Errors and Omissions Exposures Insurance for Life / A&S Agents, which is also included in the subscription option. Individual Courses start at $85. Six month subscriptions to the entire Life/A&S CE course catalogue are $260.
Advantages of the ILS continuing education course subscriptions:
- Once you purchase your subscription, you can begin taking your courses immediately! If you are a new subscriber, you will receive an automated username and password by email.
- Access more than 180 accredited general insurance training courses in both text and streaming video formats, including personal lines, commercial lines, auto, farm, professional management and personal skills courses.
- Access more than 75 accredited life/A&S insurance training courses in both text and streaming video formats including errors & omissions insurance, money management planning process and insurance and estate planning.
- Have a digital record of your completed course work, which we keep on file for up to seven years.
- Save time by completing your general insurance continuing education requirements entirely online, no paperwork or commute.
- Courses can be accessed any time and you can log in and log out as many times as you wish during the course period.
- Quizzes and Final exams are offered in most of our courses to help you retain the information.
- Should you require any assistance at any time during your course work, we are here to support you 5 days a week, 0800 – 1700 PST.
Join the more than 22,000 Canadian insurance professionals who develop their skills with ILScorp each year! Visit ILScorp.com today to get started, or call 1-800-404-2211.
CE with ILS – Fast, Easy, Done!
Apr 16, 2014 | News
BC Insurance agents – your CE deadline is coming up on May 31, and the BC Insurance Council wants to make you aware of a number of key points about your continuing education requirements.
In an email sent out last Friday, the council strongly recommends that you review the CE section on Council’s website to ensure you are aware of your responsibilities, as it appears there are common misconceptions on the CE requirements.
Some key points from their email:
- Your licence year runs from June 1 to May 31.
- You must complete CE for each year licensed, including your first year, regardless of when you obtained your licence. The CE for your first year must be completed at the time of your first annual filing. As an example, if your first licence was effective March 15, 2013, the next filing date is June 1, 2014. For your June 1, 2014 filing you will be required to have two full years of CE credits; one for your March 15, 2013 to May 31, 2013 licence year and one for your June 1, 2013 to May 31, 2014 licence year.
- If you have been licensed for any part of a licence year (active or inactive), you must complete the full CE requirement for that year.
- There is no carry-forward of credits.
- The LLQP course and exam taken to qualify for your life licence do not qualify for CE.
- Courses taken prior to obtaining your licence do not qualify for CE.
This is not all of the information you require to meet your CE obligations. The insurance council urges you to read the entire section on your CE responsibilities, including how to determine if a course qualifies, the number of hours needed, and what information you need to maintain on file for a CE audit.
ILScorp is here to help if you still need to complete your CE hours. Subscribe today to our General Insurance Course Catalog and enjoy these benefits:
- access to over 180 accredited general insurance training courses in both text and streaming video formats, including personal lines, commercial lines, auto, farm, professional management and personal skills courses.
- save money compared to purchasing individual courses.
- have a digital record of your completed course work, which we keep on file for up to seven years.
- save time by completing your general insurance continuing education requirements entirely online, no paperwork or commute.
Enjoy the same benefits with our Life/A&S course subscriptions, which offers more than 75 courses.
Buy online today or call us at 1-800-404-2211 with any questions!
According to the email from the insurance council, Council has increased the number of CE audits it conducts and has been disciplining licensees found to be in breach of this licence condition. In its reviews, Council has typically not accepted a licensee’s lack of knowledge regarding their responsibilities as a defence. Remember it is your responsibility to understand and meet your responsibilities as a licensee.
