Fines & Penalties Are Steep
To help understand the expense, we can use an example. Unlicensed placements for risks in Alberta are typically subject to an additional provincial fee equal to 50% of the premium, along with substantial late reporting penalties. However, our tats us a licensed Special Broker can permit clients to reduce their compliance cost to 3% of the Alberta premium, when legislative requirements can be met.
Additionally, unlicensed insurance is subject to Federal Excise Tax equal to 10% of the Canadian premium. We have assisted clients with securing a full exemption of the Excise Tax from Canada Revenue Agency (CRA).