Every Insurance Marketing Firm that the IRDAI licenses to operate in the Insurance Market must appoint a Principal Officer as its legal representative. The Principal Officer, so appointed, represents the Marketing Firm in each of its legal proceedings and formal representations.
The IRDAI has laid out the guidelines for the Insurance Marketing Firm in appointing its Principal Officer. There is a proper procedure to be followed by the Marketing Firm in appointing its Principal Officer. In this article, we have laid out the entire framework for the appointment of the Officer in an Insurance Marketing Firm. Let us see them one by one.
Every Insurance Marketing Firm must appoint its Principal Officer of he or she fulfils any of the conditions of the Educational qualifications prescribed as per the IRDAI's standards:
Insurance Marketing Firm must examine and train its Principal Officer after he or she has fulfilled the educational or work requirements, further to fulfil the training, examination, and certification requirements as mentioned in the following points:
The Principal Officer must undergo the necessary 50 hours of IMF training. He must be trained at an institution recognized by the Authority. He or she also must have passed the examination at the end of the training period. The examination is conducted by an Examination Body recognized by the IRDAI.
Only if the Principal Officer of the Marketing Firm has any one of the following educational qualifications, then he or she can undergo 25 hours of training and appear for the examination:
The IMF must follow the Training Methodology and Examination procedure as applicable for the Principal Officer and specified in the third schedule of the IRDAI Regulations.
Suppose the Principal Officer has undergone training and passed the respective examination required for the position of a Principal Officer in any of the following:
In such cases, the IRDAI will exempt the Officer from training and examination requirements to become the Principal Officer of the Insurance Marketing Firm.
But the IMF must arrange the training and examination within five years preceding the date when it made the application for Principal Officer.
The Authority will consider the Principal Officer of the Insurance Marketing Firm as a fit and proper individual only if he or she fulfils the following conditions:
These absences of disqualification for acting as an intermediary, as stipulated in the IRDAI Act, are amended from time to time.
For grant or renewal of registration to act as a Marketing Firm or to continue as an IMF under relevant regulations, the IMF must appoint its Principal Officer accordingly. The IRDAI will consider an Applicant NOT Fit and Proper if he or she does any of the following:
The Court of Lar\w has convicted the Principal Officer, its Insurance Marketing Firm, or the full-time director or managing partner for any criminal offence. The Authority will consider the offenses involving moral turpitude, monetary offense, safety laws, or fraud disqualifying for the Principal Officer.
If the Authority has passed an order for winding up against the Marketing Firm;
If the Authority has declared the Principal Officer or the Marketing Firm, its full-time director, or managing partner insolvent and the Authority has not discharged them;
Suppose the Authority passes an order which is other than the order of suspension of the registration certificate of an Insurance Marketing Firm. Such an order can be restraining, prohibiting, or debarring the Principal Officer, the Insurance Marketing Firm, the director or the managing partner from Insurance solicitation or other service activity. The Authority or other regulatory Authority passes such orders. The period of effectiveness of such orders is of one year from the date of the expiry of the period specified in the order.
Also, if the Principal Officer or the Marketing Firm is financially not sound;
The Principal Officer can also be declared unfit for other reasons, as the Authority recorded in writing. Such opinion of the Authority can render the Principal Officer, the Insurance Marketing Firm, or its director or managing partner unfit to function as a Marketing Firm.
The Principal Officer of an Insurance Marketing Firm must furnish the FIT and a Proper Form as prescribed by the IRDAI. He must also furnish, along with the license application for a grant of new or renewal of existing IMF registration to function as an Insurance Marketing Firm, the requisite documents necessary for the registration.
For more information about the Insurance Marketing Firm and its registration process, connect with the Insurance experts at Registrationwala.