Disclosure Statement

To: My Valued Clients and Prospective Clients

In late 2004, the Ontario government passed a new regulation, Regulation 347-04, under the Insurance Act, which updated the licensing provisions for life insurance agents and brokers. One of the requirements of this regulation is that life insurance brokers must provide clients with written disclosure of any perceived or actual conflicts of interests.

In addition to the Ontario requirements, life insurance agents and brokers across Canada have implemented a further voluntary standard where we have agreed to disclose other information pertinent to our business relationship. The aim of this voluntary initiative is to ensure clients, like you, feel confident in the advice I give and the transactions I recommend. Accordingly, please carefully read the following information.

(i) Compensation

As you likely already know, agents and brokers in the life insurance business in Canada are compensated by commissions, bonuses and other inducements, from the companies we do business with. These are generally paid at the time of the initial sale and during the period you keep that policy in force. From time-to-time, some companies may offer other types of compensation, such as travel incentives or educational opportunities, for a limited number of agents/brokers in recognition of sales made over a specified period of time. Incentive-based compensation is an industry wide practice and has been the normal form of payment to agents/brokers who sell such products for many years.

As an independent broker, I am bound by the laws governing life insurance agents in Ontario. This means that the products that we recommend are the ones we believe are best suited to meet your needs without regard to the compensation practices of any one company. Our role as an independent broker is to work on your behalf as your intermediary and advocate with the insurance provider, to answer any questions you may have, and to ensure your ongoing satisfaction with coverage.

When you purchase insurance from me, I will be paid a commission by the insuring company and may possibly be eligible for other forms of compensation. My role, as an independent advisor, is to work on your behalf as your intermediary and advocate with the insurance company and to resolve any questions you may have throughout the time you hold that policy, to ensure your ongoing satisfaction. In recognition of this, insurance companies pay a renewal, or retention, fee to brokers periodically while the policy remains in force.

(ii) Conflict of interest

I am required to provide you with disclosure of any actual or potential situation which may result in a conflict of interest.

(iii) Companies Represented

I am authorized to represent or have contracts with a long list of insurance companies. This includes, but is not limited to the following (subject to change):

  1. Cigna
  2. Cooperators
  3. Desjardins Financial
  4. Equitable Life
  5. Empire Life
  6. Great West Life
  7. Greenshield Canada
  8. Industrial Alliance
  9. Manulife Financial
  10. Medavie Blue Cross
  11. RBC Insurance
  12. Sun Life Financial

Should you require further information about any of these companies, or have a complaint, I will assist you personally, or direct you to the appropriate resource.

This disclosure is made in accordance with Ontario Regulation 347/04, under the Insurance Act.


Karen Principato
KP Benefits Inc.
Current Revision Date: January 1, 2015