ALBERTA INSURANCE COUNCIL
(the “AIC”)
In the Matter of the Insurance Act, R.S.A. 2000, Chapter I-3
(the “Act”)
And
In the Matter of Kindersley Insurance Ltd.
(the "Agency")
As represented by
Designated Representative
Mark Stockford
(the “DR”)
AGREED STATEMENT OF FACTS AND JOINT SUBMISSION
WHEREAS the Alberta Insurance Council (the “AIC”) undertook a review of the Agency’s sales records, based on information that indicated that the Agency had been compensating an unlicensed agent, Mark Stockford (DR) for sales made while the agent was unlicensed;
AND WHEREAS the review established that the Agency compensated an unlicensed agent for the sale of 20 general insurance policies during the period from July 1, 2015 to and including May 10, 2016 (“unlicensed period”);
AND WHEREAS the Agency is aware of the opportunity to retain and instruct legal counsel with respect to the matters referred to in this Agreed Statement of Facts and Joint Submission;
NOW THEREFORE the DR and the Investigator agree as follows:
1.0 For the purposes of this Agreed Statement of Facts and Joint Submission, the Agency through its DR makes the following admissions and submissions:
1.1.1 The Agency is the holder of a Certificate of Authority (7-2211) to transact business as a general insurance agency and has been licensed since December 13, 2000 except for the unlicensed period;
1.1.2 On October 12, 2016, the investigator contacted the DR to verify if he had solicited or sold insurance during the unlicensed period and if he had been compensated by the Agency for such sales.
1.1.3 The Agency advised it had been compensated $1,451.62 for the sale of 20 policies during the unlicensed period and had in turn paid the DR a monthly salary. The Agency advised the AIC that it does not do a lot of business in Alberta, its business in Alberta is mostly to accommodate its Saskatchewan customers who may move to Alberta. Through oversight the DR forgot to renew both his license and the license of the agency. The DR advised the investigator that he has since adopted steps to ensure this does not reoccur.
1.1.4 The agent is also the DR of the Agency. He has been licensed for several years and acknowledges the seriousness of this matter. There was one year of licensing fees missed for the unlicensed period.
1.1.5 The Agency is aware that any similar future occurrences may result in a potential fine as high as $1,000.00 per policy compensated when unlicensed.
2.0 As a result of the facts set out in this Agreed Statement of Facts and Joint Submission, the Agency contravened section 499 (1) of the Act, and consequently violated section 480 (1) (b) of the Act for compensating an unlicensed agent.
3.0 The DR and the Investigator jointly recommend to the General Insurance Council (“Council”) that the Council approve this Agreed Statement of Facts and Joint Submission and resolve, dispose of and finally conclude this matter involving the Agency by approving a decision in the form annexed hereto as Schedule 1, which provides for a civil penalty in the amount of $695.00, in accordance with the penalties prescribed in section 13 (1) (b) of the Certificate Expiry, Penalties and Fees Regulation, A.R. 125/2001 based on a missed license renewal fee of $95 and a civil penalty of $600 for compensating an unlicensed individual.
4.0 The DR recognizes that the acceptance of the decision set out in Schedule 1 shall be at the unfettered discretion of the Council.
5.0 The Agency is aware of and acknowledges that upon receiving notification of the Council’s decision, the civil penalty specified in Schedule 1 must be paid within the time frames set out in section 480 (4) of the Act.
6.0 The Agency is also aware of and acknowledges that by entering into this Agreed Statement of Facts and Joint Submission, the Agency waives its right to appeal this decision as set out in section 482 of the Act.
7.0 The Agency waives any existing right it may have under the Act or otherwise to a hearing, review, judicial review or appeal of this matter.
8.0 The Agency acknowledges that this Agreed Statement of Facts and Joint Submission may be referred to in this or any other proceeding under the Act, and in regulatory proceedings in other jurisdictions.
9.0 The Agency recognizes that this Agreed Statement of Facts and Joint Submission resolves all issues involving the Agency in this matter only, as the matter is described above.
Dated at the City of Calgary, in the Province of Alberta this 11th day of January, 2017.
ALBERTA INSURANCE COUNCIL
PER:
ROY DIAS____________________
Roy Dias, Investigator
Dated at the City of Kindersley, in the Province of Saskatchewan, this 18th day of January, 2017.
MARK STOCKFORD____________________________
Mark Stockford, Designated
Representative
In the presence of:
WITNESS__________________________ WITNESS____________________________
Signature of Witness Name of Witness (please print)
SCHEDULE 1
ALBERTA INSURANCE COUNCIL
(the “AIC”)
In the Matter of the Insurance Act, R.S.A. 2000, Chapter I-3
(the “Act”)
And
In the Matter of Kindersley Insurance Ltd.
(the "Agency")
As represented by
Designated Representative
Mark Stockford
(the “DR”)
DECISION OF
The General Insurance Council
(the “Council”)
WHEREAS the Investigator of the Alberta Insurance Council (“AIC”) made a request for information in relation to an investigation being conducted by the AIC into the Agency compensating an unlicensed agent;
AND WHEREAS as a result of information received, the Investigator and the DR of the Agency entered into an Agreed Statement of Facts and Joint Submission, a copy of which is attached hereto;
AND WHEREAS pursuant to the Agreed Statement of Facts and Joint Submission, the DR has agreed that the Agency will pay a civil penalty in the amount of SIX HUNDRED AND NINETY-FIVE DOLLARS ($695.00) and has acknowledged that the Council has the discretion to accept or reject that recommendation;
AND WHEREAS the Council considers that it would be in the public interest to approve the said Agreed Statement of Facts and Joint Submission;
IT IS ORDERED that:
1. The Agreed Statement of Facts and Joint Submission be accepted and is hereby approved; and
2. The Agency pay a fine of SIX HUNDRED AND NINETY-FIVE DOLLARS ($695.00), in accordance with the terms and conditions set out in the Agreed Statement of Facts and Joint Submission.
The attached Agreed Statement of Facts and Joint Submission was reviewed by the Council and a motion to approve this decision was made and carried at a properly conducted meeting of the General Insurance Council. The motion was duly recorded in the minutes of that meeting.
Date: February 1, 2017__ AMANDA SAWATZKY
Member and Designee
General Insurance Council