Compensation | Changes to the rules regarding replacement charges for individual insurance policies

Hello,

We wish to inform you that effective May 8, 2023, iA is changing its rules in the event of replacement charges for individual insurance policies, as set out in the Commission and Bonus Schedule.

After considering current industry practices, we have made the decision to align ourselves with the market and standardize our rules to ensure the fair treatment of our advisors and clients.

Removal of two rules

Please note that we will be removing the following rules from the Commission and Bonus Schedule:

1-  Reimbursement of termination charges when a policy is replaced by another advisor

Wording of the rule removed: The advisor who was charged for the first-year commission for the former policy will be repaid for these charges up to the amount of commission paid on the new policy.

2-  Reimbursement of replacement charges when a new policy is terminated

Wording of the rule removed: If the new policy for which replacement charges were applied terminates, the advisor will be repaid for sales commissions charged in excess of those received for the new policy, provided the advisor who sold the former policy was no longer under contract with the Company when the new policy was issued.

Thank you for your cooperation.

The Contracting and Compensation Team, Distribution Networks
Individual Insurance, Savings and Retirement