(the “AIC”)
In the Matter of the Insurance Act, R.S.A. 2000 Chapter I-3
(the “Act”)
And
In the Matter of Loralee Ross
(the "Agent")
DECISION
OF
The Life Insurance Council
(the “Council”)
This case involved an allegation pursuant to s. 481(2) of the Act. Specifically, it is alleged that the Agent failed or refused to provide information and documentation requested by the AIC contrary to s. 481(1) and (2) of the Act, within the time specified in a Demand for Information (the “Demand”). In so doing, the it is alleged that the Agent contravened a section of the Act as contemplated by s. 480(1)(b).
Facts and Evidence
This matter proceeded by way of a written Report to Council dated November 21, 2017 (the “Report”). The Report was forwarded to the Agent for review and to allow the Agent to provide the Council with any further evidence or submissions by way of Addendum.
On September 29, 2017 the AIC conducted an audit to verify that the continuing education (“CE”) credits that licensees disclosed on their renewal applications were correct. The AIC sent emails to agents that were randomly selected from a pool of agents who submitted their certificate renewal application(s) in the waning stages of the May/June, 2017 renewal period. These agents were asked to provide proof of CE credits for the past 3 licensing periods from 2014 to 2017.
The Agent was the former holder of life and accident & sickness (“A&S”) certificates of authority and was licensed from March 5, 2014 until November 1, 2017. The Agent’s certificates of authority were suspended on November 1, 2017 due to failure to provide proof of CE credits.
On September 22, 2017 the AIC advised the Agent that a formal audit of her CE credits would be forthcoming. In accordance with the September 22, 2017 email, the AIC emailed the Agent a Demand on September 29, 2017 which set out a period of thirty (30) days to respond. The AIC telephoned the Agent on October 5, 2017 and requested that she respond to the CE audit within the 30 day period set out in the Demand. The AIC Investigator (the “Investigator”) then emailed the Agent on October 16, 2017 and requested a response to the Demand.
On October 18, 2017 the Agent provided several CE certificates by way of email and advised the Investigator that she could not locate one of the CE certificates required to satisfy the audit. The Investigator emailed the Agent and request that she contact the AIC via telephone to discuss the documents. The Investigator attempted to contact the Agent via telephone and left a message to the same effect, and further advised the Agent that she could take another course to make up the missing CE credits. The Agent did not provide any further response.
Discussion
The AIC operates under a delegation from the Minister of Treasury Board and Finance that authorizes the AIC to investigate complaints against holders and former holders (such as the Agent in this case) of insurance agent certificates of authority. Pursuant to the Minister of Finance Directive No. 05/01, the Minister also delegated his powers under s. 481 to the AIC. Section 481 states that “[t]he Minister may direct the holder or former holder of a certificate of authority to provide to the Minister within a reasonable period of time specified in the direction any information specified by the Minister relating to the matters in section 480(1).” Subsection 2 states that the “… A person served with a direction … who has the information must provide the information in accordance with the direction.”
The offence set out in s. 481 of the Act is one of strict liability. This means that in order to be found guilty, the AIC only needs to prove that a demand for information was properly made and delivered. Once the AIC has proven that the Demand was made, the onus shifts to the Agent to demonstrate that she took all reasonable efforts to avoid committing the offence.
From the evidence submitted in the Report, we are satisfied that the AIC’s Demand meets the requirements of s. 481 of the Act. However, given the facts in their entirety, we are also satisfied that the Agent took all reasonable efforts to comply with the requirements set out by the Demand. Namely, the Agent was asked to provide proof of her CE certificates in accordance with the Demand and accordingly, the Agent responded within the 30 day period and provided all of the CE certificates available to her. The fact that the Agent provided information to the AIC that she did not have one of the CE certificates requested shows that the Agent provided a meaningful response to the request for information. Had the AIC alleged that the Agent failed to comply with s. 31 (2) of the Insurance Agents and Adjusters Regulation, Alberta Reg. 122/2001, which states that “The [CE] records must be kept for a period of 3 years following the expiry of the certificate term and must be provided to the Minister upon request” the Council may have determined that the Agent was guilty but, given the Agent was accused of an offence under s. 481 of the Act, we find the Agent not guilty.
This Decision was made by way of a motion made and carried at a properly conducted meeting of the General Insurance Council. The motion was duly recorded in the minutes of that meeting.
Dated: April 16, 2018 Original signed by
Kenneth Doll, Chair
Life Insurance Council
Extract from the Insurance Act, Chapter I-3
Appeal
482 A decision of the Minister under this Part to refuse to issue, renew or reinstate a certificate of authority, to impose terms and conditions on a certificate of authority, to revoke or suspend a certificate of authority or to impose a penalty on the holder or former holder of a certificate of authority may be appealed in accordance with the regulations.
Extract from the Insurance Councils Regulation, Alberta Regulation 126/2001
Notice of appeal
16(1) A person who is adversely affected by a decision of a council may appeal the decision by submitting a notice of appeal to the Superintendent within 30 days after the council has mailed the written notice of the decision to the person.
(2) The notice of appeal must contain the following:
a) a copy of the written notice of the decision being appealed;
b) a description of the relief requested by the appellant;
c) the signature of the appellant or the appellant's lawyer;
d) an address for service in Alberta for the appellant;
e) an appeal fee of $200 payable to the Provincial Treasurer.
(3) The Superintendent must notify the Minister and provide a copy of the notice of appeal to the council whose decision is being appealed when a notice of appeal has been submitted.
(4) If the appeal involves a suspension or revocation of a certificate of authority or a levy of a penalty, the council's decision is suspended until after the disposition of the appeal by a panel of the Appeal Board.
Address for Superintendent of Insurance:
Superintendent of Insurance
Alberta Finance
402 Terrace Building
9515-107 Street
Edmonton, Alberta T5K 2C3