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All Canadian Licensed Brokerages
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The CAP program is available to all Canadian brokerages who are duly licensed by their provincial or territorial government licensing body and who carry and maintain Errors and Omissions Insurance.
Note: Brokers can obtain a quotation: here
How does your brokerage get credit for business?
It is essential that your brokerage information (all fields) on the CAP Insurance Application Form is correct. If the information is not correct:
a) CAP will be unable to link the business to your firm
b) the policy documents etc. will be distributed directly to the client and
c) brokerage account settlement can not occur.
The CAP program compensates licensed insurance brokerages with split of all commissions on files generating $5000 in revenue or higher. For those files which do not generate $5000 in premium, no commission will be paid to the sub-broker. All new business is also subject to a non-refundable $150 policy fee. Clients will remain the property of the sub-broker.
Client Service
Your brokerage provides all ongoing client account service functions.The CAP website has been designed to be as "stand alone, self-serve" as possible (i.e., claims, etc.), thereby minimizing as much as possible many account servicing issues.
Administration Invoice
Once the "Submit Payment Function" is activated on the web site, a CAP invoice will be emailed to your brokerage.
Policy Documents
Once the premium payment has been processed, the Declaration Page and Policy Wording will be forwarded via email and the original Declarations Page will be sent by ICS. It is your responsibility to forward documents to your client.
Premium Payments
a) If the client has issued the cheque, please ensure that the Invoice/Transaction # is written on the front of the cheque and send it to the address indicated on the Payment Page, along with a copy of the invoice. This will ensure that the cheque is linked to your brokerage for account settlement purposes.
b) If you (your brokerage) pay the CAP premium by cheque (drawn on your brokerage trust account) on behalf of a client, please enclose a statement of all transaction(s) and a copy of the invoice(s). The amount of the cheque (shown on the Payment Page screen) must equal (do not deduct your commission) the "amount to be paid" (shown on the Payment Page screen) in order for the cheque to be processed, to bind coverage and the original policy documents to be issued. All cheques should be made payable to: Phoenix-Eastern Insurance Brokers Inc.
c) For most clients, a monthly premium payment arrangement can be offered via the insurers direct billed, pre-authorized, automatic withdrawal system. Special cases may require financing through CAFO or AIG Credit which should be handled directly by your office.
Note: In order to ensure that the insurance coverage is 'bound in force' as of the requested 'effective date of coverage', the cheque must be received by Phoenix-Eastern within five days of binding.
Binders
The quotation document produced in the Request for Quotation section of the website also serves as the brokerage's insurance coverages "binder".
Account Statement
For brokerage account settlement, CAP closes its books at the end of each month and settles its brokerage accounts on the last day of the following month.
Note: Commissions will not be paid until all underwriting information has been recieved. i.e. financials, by-laws, list of Directors & Officers.
CAP Website
We have attempted to develop the CAP website with as much simplicity as possible, however if you identify areas that cause you difficulty or you believe could be improved, better explained etc., please provide your feedback as your suggestions are appreciated.
Any additional questions, please contact us.
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