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 Mariden International Ltd.
(the "Agency")
As represented by
Designated Individual
Mario Skrpec
(the “DI”)
AGREED STATEMENT OF FACTS AND JOINT SUBMISSION
WHEREAS the Alberta Insurance Council (the “AIC”) undertook a review of the Agency’s records, during which review information indicated that the Agency had operated without a valid and subsisting certificate of authority and acted as a restricted travel agent from July 1, 2017 to May 15, 2018 (“unlicensed period”);
AND WHEREAS the review established that the Agency issued 38 insurance policies and was compensated in the amount of $12,207.70 for those policies during the 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 DI and the Investigator agree as follows:
1.0 For the purposes of this Agreed Statement of Facts and Joint Submission, the Agency through its DI makes the following admissions and submissions:
1.1.1 The Agency is the holder of a Certificate of Authority (3-3112) to transact business as a restricted travel agent and has been licensed since at least July 8, 2002;
1.1.2 Mario Skrpec is named as the DI of the Agency, and has been licensed since at least July 8, 2002;
1.1.3 In response to an email from the AIC dated May 1, 2018, the DI sent an email dated May 16, 2018, confirming that the Agency had acted as and been compensated for acting as, a travel insurance agent during the unlicensed period;
1.1.4 The DI confirmed to the investigator that the Agency issued 38 policies during the unlicensed period and earned $12,207.70 in commissions. Manulife Assurance Company of Canada also confirmed the number of policies sold by the Agency and the commission earned during the unlicensed period.
1.1.5 The investigation determined that the DI did not receive the reminder emails to renew the Agency’s license due to an incorrect email address that was on file with the AIC. Since then the Agency has updated the email address and new staff are handling its license renewal.
1.1.6 This is the first occurrence of unlicensed activity for this Agency.
1.1.7 The DI is aware that any similar future occurrences may result in a potential fine as high as $1,000.00 per policy sold 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 452 (1) of the Act, and consequently violated section 480 (1) (b) of the Act for acting as a restricted travel agent when unlicensed.
3.0 The DI 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 the Agency by approving a decision in the form annexed hereto as Schedule 1, which provides for a civil penalty in the amount of $450.00, in accordance with the penalties prescribed in section 13 (1) (b) of the Certificate Expiry, Penalties and Fees Regulation, A.R. 125/2001.
4.0 The DI recognizes that the acceptance of the decision set out in Schedule 1 shall be at the unfettered discretion of the Council.
5.0 The DI 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 DI 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 DI 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 DI 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 DI 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 12th day of October, 2018.
ALBERTA INSURANCE COUNCIL
PER:
[Original signed by]
Trisha Lunt, Investigator
Dated at the City of Edmonton, in the Province of Alberta, this 12th day of
October, 2018.
[Original signed by]
Mario Skrpec, Designated Individual
In the presence of:
[Original signed by] [M.A.]
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 Mariden International Ltd.
(the "Agency")
As represented by
Designated Individual
Mario Skrpec
(the “DI”)
DECISION OF
The Life 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 acting as a restricted travel agent while unlicensed;
AND WHEREAS as a result of information received, the Investigator and the DI 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 DI has agreed that the Agency will pay a civil penalty in the amount of FOUR HUNDRED and FIFTY DOLLARS ($450.00) 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:
- The Agreed Statement of Facts and Joint Submission be accepted and is hereby approved; and
- The Agency pay a fine of FOUR HUNDRED and FIFITY DOLLARS ($450.00), 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 Life Insurance Council. The motion was duly recorded in the minutes of that meeting.
Date: November 14, 2018 [Original signed by]
Michael Bibby, Chair
Life Insurance Council