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 One Stop Mortgage Corp.
(“One Stop”)
AGREED STATEMENT OF FACTS AND JOINT SUBMISSION
WHEREAS the AIC undertook a review of One Stop’s errors and omissions (“E&O”) policy information that was disclosed on its 2017/18 renewal application, during which review information came to light that indicated that the E&O information provided by One Stop was invalid;
AND WHEREAS the review established that One Stop had a E&O insurance policy in place, however that policy that failed to provide coverage for One Stop’s insurance agents activity;
AND WHEREAS One Stop 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 One Stop and the Investigator agree as follows:
1.0 For the purposes of this Agreed Statement of Facts and Joint Submission, One Stop through it’s Designated Individual (“DI”) makes the following admissions and submissions:
1.1.1 One Stop is the holder of a Certificate of Authority (93-10929532) to transact business as a restricted insurance agency to sell mortgage related insurance policies and has been licensed since November 27, 2012.
1.1.2 On October 13, 2017, the AIC sent an email to the DI requesting that she provide the AIC with information regarding One Stop’s E&O insurance policy. On October 31, 2017, the DI provided a copy of One Stop’s 2017/18 policy which showed that coverage was in place.
1.1.3 On November 7, 2017, the AIC sent an email to the E&O carrier requesting that the E&O carrier review their records to confirm whether the E&O insurance policy provided coverage for insurance agents activity. On November 22, 2017, the E&O carrier confirmed that the policy did not provide E&O coverage for insurance agent’s activity.
1.1.4 The DI advised that in an email dated June 26, 2017, Sergio Spadavecchia (“SS”), with One Stop provided the E&O information to her. In good faith, the DI relied on the E&O information provided by SS and entered that E&O information onto the 2017/18 renewal application
1.1.5 One Stop is aware that any similar future occurrences may result in a potential fine as high as $1000.00 per occurrence.
2.0 As a result of the facts set out in this Agreed Statement of Facts and Joint Submission, One Stop contravened section 465(1) of the Act, and consequently violated section 480(1)(b) of the Act for failing to meet the E&O requirements in the Act.
3.0 One Stop and the Investigator jointly recommend to the Life 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 One Stop by approving a decision in the form annexed hereto as Schedule 1, which provides for a civil penalty in the amount of $300.00 in accordance with the penalties prescribed in section 13(1)(b) of the Certificate Expiry, Penalties and Fees Regulation, AR 125/2001.
4.0 One Stop recognizes that the acceptance of the decision set out in Schedule 1 shall be at the unfettered discretion of the Council.
5.0 One Stop 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 One Stop is also aware of and acknowledges that by entering into this Agreed Statement of Facts and Joint Submission, One Stop waives its right to appeal this decision as set out in section 482 of the Act.
7.0 One Stop 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 One Stop 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 One Stop recognizes that this Agreed Statement of Facts and Joint Submission resolves all issues involving One Stope in this matter only, as the matter is described above.
Dated at the City of Edmonton, in the Province of Alberta this 24th day of April, 2018.
ALBERTA INSURANCE COUNCIL
PER:
[Original signed by]
Trisha Lunt, Investigator
Dated at the City of Vancouver, in the Province of British Columbia, this 8th day of May, 2018.
One Stop Mortgage Corp.
PER:
[Original signed by]
Sergio Spadavecchia
In the presence of:
[Original signed by] [M.C.]
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 One Stop Mortgage Corp.
(the “One Stop”)
DECISION OF
The Life Insurance Council
(the “Council”)
WHEREAS an Investigator of the Alberta Insurance Council (“AIC”) made a request for information in relation to an investigation being conducted by the AIC into an errors and omissions review;
AND WHEREAS as a result of information received, One Stop and the Investigator 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, One Stop has agreed that the it will pay a civil penalty in the amount of THREE HUNDRED DOLLARS ($300.00) in relation to One Stop failing to meet the E&O requirements in the Act 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. One Stop pay a fine of THREE HUNDRED DOLLARS ($300.00) in accordance with the terms and conditions set out in this 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 Life Insurance Council. The motion was duly recorded in the minutes of that meeting.
Date: June 13, 2018
Original signed by
Kenneth Doll, Chair
Life Insurance Council