Private Capital Markets

Does Your Insurance Meet National Instrument 31-103 Requirements?

EXEMPT MARKET DEALERS PROFESSIONAL

LIABILITY INSURANCE PROGRAM
EXEMPT MARKET DEALERS
MANDATORY DEALER FIB INSURANCE

The only policy available in the insurance market designed specifically for registered Exempt Market Dealing Representatives with the support of the PCMA.

Since March 2010, the PCMA Financial Institution Bond (FIB)

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Insurance coverage is available exclusively to PCMA Members to ensure they satisfy the mandatory insurance requirements for Exempt Market Dealer firms under National Instrument 31-103.

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Insurer: AXIS Reinsurance Company

Insured: Individual Exempt Market Dealing Representatives

Coverage: Compensatory damages arising out of a claim as a result of an actual or alleged error, omission or negligent act in the performance of professional services as an Exempt Market Dealing Representative/ Life / Accident & Sickness Insurance

As part of the PCMA Insurance Program, the following coverage extensions are provided at no additional cost to PCMA members:

Agent/ Mutual Fund Representative, subject to the terms and conditions of coverage. Limits of Insurance: Insured can purchase limits of $1,000,000 to $5,000,000 for each claim. The per-claim limit is subject to an aggregate limit per policy period.

• Revised "manifest intent" wording under the "Fidelity/Employee Dishonesty" insuring agreement that provides a marked improvement from the standard FIB wording;

Defence Costs, Charges and Expenses: Included within the limit of liability, except where otherwise regulated.

Prior Acts: The inception date of the insured’s first claims made professional liability policy for Professional Services as defined on the certificate of insurance issued, provided such coverage has been maintained in force and without interruption.

• A $25,000 limit for "Audit Expense" coverage for the costs associated with retaining an expert to determine the amount of a loss (e.g., hiring a forensic accountant to determine the quantum of a loss);

Territory: Worldwide coverage is provided, subject to the suit being brought forth in Canada, the United States, its territories and possessions.

• "Computer Systems Fraud" coverage for loss resulting from a fraudulent entry of electronic data or computer programming within a covered computer system;

• Coverage for "Voice" and "Facsimile" initiated fraudulent transfers of funds;

Coverage for Appearance Before a Disciplinary Body: $10,000 each claim/ annual aggregate - each insured agent.

• "Extortion" coverage for threats to persons and property of the insured;

Vicarious Liability Coverage for Firms: Coverage also extends to provide Vicarious Liability coverage to the agency with whom the insured is directly contracted to do business.

Automatic Discovery Period Extension: 60 days

Extended Reporting Period Coverage: Availability to purchase 1 to 10 Years of Extended Reporting Period coverage.

• "Designated Representative Rider," which means that a loss has not technically been discovered by an insured until it is known to their designated insurance contact. This can help eliminate the insurer’s ability to deny a claim based on untimely reporting to the insurer if they believe it was known to the insured and not reported within the necessary reporting time periods; and

Policy Conformity to Provincial Regulations: Included

Cancelation Notice by Insurer: 90 days, except for non-payment of premium to which 15 days or mandatory provincial requirement applies.

• "Stop Payment Order" coverage extension providing coverage for a loss that the insured EMD is liable to pay due to a failure to comply with a customer's request to stop payment on a cheque or other form of negotiable instrument.

Interested to learn more about PCMA Insurance Program? Contact us!

Application for coverage is automated and policy documents are delivered directly to your
inbox within minutes. We can also design employer sponsored programs for larger EMD firms.