In this issue:

• Desjardins Insurance to start using APEXA on September 21
• New concept in the Insurance Illustration: Small Business Passive Income Impact Calculator (PIIIC)
• Google Chrome Update Causing Issues in Webi

DESJARDINS INSURANCE TO START USING APEXA ON SEPTEMBER 21

The insurance industry is changing and more and more insurers are going digital. That’s why Desjardins Insurance will start using APEXA on September 21.

What is APEXA?

APEXA is a digital contracting and compliance management solution that connects advisors, MGAs and Canadian insurers. It increases the standardization, clarity, speed and efficiency of contracting and licence renewal, while meeting regulatory requirements.

APEXA will help make your day-to-day easier.

What does it mean for you?

Simplified contracting
Speed up new contract requests and manage in-force contracts with your secure profile. Say goodbye to paper forms!

Consolidated advisor profile
Changes to your information are automatically shared with your MGA and any carriers you’re under contract with, including us.

Compliance risk management
Avoid lapses in your licences and E&O coverage through automated notifications and alerts.

APEXA section on Webi

All the information you need in one place. Go to the APEXA section to find out more about training and the rollout.

More on APEXA

Go to www.apexa.ca or watch the introduction video.

Questions?

Contact your MGA.

NEW CONCEPT IN THE INSURANCE ILLUSTRATION: SMALL BUSINESS PASSIVE INCOME IMPACT CALCULATOR (PIIIC)

What is passive investment income?

Passive investment income is income that is not directly related to the business activities of a corporation. As a business grows, it can accumulate cash, a portion of which is not needed to conduct day-to-day operations. 

The passive income of a business is precisely that part of its income that it derives from its investments. This includes but is not limited to: interest, dividends, capital gains, and rental income. Passive investment income is therefore opposed to income directly related to the business activities of the company.

What is the impact of having too much passive investment income for the corporation?

If you work with business owners, you know that too much passive investment income will limit access to the small business deduction (SBD) of a Canadian Controlled Private Corporation (CCPC).  Passive investment income greater than $ 50,000 a year will limit access to the small business deduction. In addition, once the CCPC’s passive investment income reaches $150,000, the business limit will be reduced to zero. 

How the concept works

We are launching a tool to help your business owner clients figure out if they need to be concerned about these tax rules.

The concept can be illustrated through the Dsign illustration system. There is no need to complete the client information and/or the product section. Simply go to strategy – concepts – Business Owners.

You will be able to produce a report that will illustrate the tax impact of having too much passive investment income inside a corporation. 

The final report will provide you with the financial impact of not using one of the solutions available to mitigate against the additional taxes and ensure that corporate passive investment income does not exceed the $ 50,000 limit.  

Advantages

By knowing the yearly projected corporate taxes over a 10-year period and the overview of the financial impacts, you will be able to advise your clients on advantageous solutions available for their corporation and thereby, potentially helping them save several thousands of dollars in taxes.

There are several strategic corporate planning ideas available to mitigate the potential additional taxes and ensure the corporation does not exceed the $50,000 limit.

Some ideas include:

• Taking out an exempt life insurance
• Setting up an Executive Health Plan (based on client's needs)
• Setting up an individual pension plan (IPP)
• Maximizing shareholder RRSPs and TFSAs
• Deferring capital gains (except on sale of property that is excluded from AAII definition)
• Making investments that defer taxable income such as Guarantee Advantage

GOOGLE CHROME UPDATE CAUSING ISSUES IN WEBI

The latest Google Chrome update is causing login and browsing issues in Webi. If you are experiencing a problem, please use Microsoft Edge while our teams work to resolve this issue.

Thank you for your understanding.