Your Obligations

Marketplace Solution Sales Process

All Marketplace Users are expected to comply with their legal and regulatory requirements on life insurance product distribution imposed by law and regulators. This document is not a complete summary of your compliance requirements. 
 
Marketplace Users are recommended to review their compliance program in light of the Marketplace Solution Sales Process and make proper adjustments accordingly.


 
INTRODUCTION
In 2019, Assumption Life launched a new Modular Sales Ecosystem allowing advisors to connect with consumers, wherever they both may be. Marketplace Solution provides an innovative online sales ecosystem for tech-savvy advisors in a connected environment, helping them to feel empowered to grow and scale their business. No better way to help with prospecting and to generate valuable leads. “Driven By Advisors” - Marketplace Solution will constantly look for ways to ensure we remain connected to the needs of our advisors so we can offer the most customizable, needs-driven solutions in the market. Our users must always feel they are in control, and we must always be there to support them.

 
PURPOSE
The regulator’s compliance principles and objectives clearly require advisors to make appropriate disclosure to consumers. As you know, the consumer must understand the insurance product they are purchasing and that it is suitable for their needs. This document recommends practices that advisors can adopt to comply with disclosure and other compliance requirements. This document will guide you through the different sales processes allowed under Marketplace Solution. It is your responsibility to implement adequate sales practices in order to satisfy your own compliance requirements.

 
SCOPE
The Marketplace Solution Sales Process allows you to conduct a sale in three different ways based on when your first contact with the consumer occurred.
 
  • Advisor-Initiated (Traditional sales process)Image-a-Samv2.jpg
    • The first contact between you and the consumer occurs during the Pre-Application Process. The consumer reached you directly and you completed the insurance application process using your Storefront with the consumer. You identify their insurance needs, you propose a solution, and you complete the required Online Application Process with your new client.
 
  • Advisor-Assisted (Consumer requests help)
    • The first contact between you and the consumer occurs during the Online Application Process. The consumer reached your Storefront and proceeded with filling out the Online Application Process, then contacts you for assistance or advice during this step. We expect that you will provide the necessary assistance to complete the sale using best practices. At this point, since you are now involved in completing the insurance application, you must ensure that the consumer has understood all questions answered so far. This means that your approach will be adapted depending on your assessment of their understanding of all questions answered thus far. If the consumer has a good understanding of the questions, you may let them continue filling out the insurance application from their electronic device on their own, or assist them until the end of the Online Application Process. If the consumer seems to have difficulty understanding the questions, you should assist them until the end of the Online Application Process or may choose to restart the Online Application Process with them.

      At this step, your professional duty is to ensure that the consumer understands the products, the insurance application questions, and the suitability of the product to their needs. Your duty is no different than if you had made a face-to-face sale. It is your duty to accompany your new client in this process to serve them well.
 
  • Advisor-Reviewed (Consumer completes sales process)
    • The first contact between you and the consumer occurs during the Post-Application Process. The consumer reached your Storefront and completed the application process on-line without contacting you for any questions or advice. We expect that you will contact the consumer after the completion of the application to thank them, and to take this opportunity to connect with your new client and reinforce the value of your services. You are also required to review and validate that the insurance product purchased is well understood and fits their needs.


 
PRINCIPLE AND COMPLIANCE ELEMENTS
PRINCIPLE
The recommended product or service must be appropriate for the needs of the consumer as determined by a needs-based assessment done by the advisor and/or as identified by the consumer.
 
COMPLIANCE ELEMENTS
All Marketplace Users are expected to comply with their legal and regulatory obligations on life insurance product distribution imposed by law and regulators. You may add other elements to this list if you and/or your agency deem it necessary.
  1. Privacy Notice - Assumption Life uses the same notice and consent form for Marketplace Solution as for Lia. It allows the advisor to access the same client information even if the advisor was not involved in the process.
  2. Disclosure Notice - It is requested in Quebec that the advisor remit this form to the client after the first contact with them in all three ways the sale process could be conducted.
  3. Identity Verification of Client - Assumption Life does not need the advisor to verify the client ID if the client himself has completed the online application without assistance of advisor.
  4. Anti-Money Laundering - Considering the nature of the products distributed through the storefront, there are no specific compliance issues to be concerned about within this process. Completing a client profile will be a benefit.
  5. Conflicts of Interest Disclosure Form - Assumption Life does not need the advisor to provide the client with this form if the client did not receive the assistance or advice from the advisor prior to and during the Online Application Process. It is however requested that the advisor remit this form to the client if the advisor provided advice to the client about the Assumption Life products, prior to directing the client to their Storefront.
  6. Needs Based Analysis -
    • Advisor-Reviewed - At the Post-Application Process step, we expect you to ensure that the product is suitable for client’s needs.
    • Advisor-Assisted - At the Online Application Process step, you ensure that the product is suitable for client’s needs.
    • Advisor-Initiated - At the Pre-Application Process step, we expect that you will follow your standard procedure for client needs assessment within the context of the transaction.
  7. Replacement - You may discuss this with client after the sale, if necessary.
  8. Client understood the MIB Notice - You may discuss this with client after the sale.
  9. Beneficiary Designation - You may discuss this with client after the sale to make sure that the beneficiary designations are in line with the client’s wishes.
  10. Agent’s Declaration of Compliance - This form is required by Assumption Life to ensure ethical treatment of the consumer and have the application submitted through your Storefront issued. After the client has submitted the application, our Underwriting Team will send you this form for the appropriate client. If you are in the Advisor-Reviewed process, you are required to do a follow-up with the client before you complete this form.
  11. Reason Why Letter - Completing a “Reason Why” letter allows you to strengthen your professional relationship with client and to show your interest about client’s current and future needs and schedule a possible future meeting with client to discuss other opportunities.
    • Advisor Reviewed - It’s a good idea after your call with client following the sale, that you follow up with a reason why letter.
    • Advisor-Assisted & Advisor-Initiated - It may already be part of your current sales process and a Reason Why Letter is a compliance requirement.

Please consult the Compliance & Personal Information section under Forms and Applications for Individual Insurance to get more information about your obligations.