Alberta Insurance Council

Case # 73822

Life Insurance Council

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 Mohamad Awdi (the "Agent")

DECISION OF The Life Insurance Council (the “Council”)

This matter involves alleged violations of s. 480(1)(a) of the Act. Specifically, it is alleged that the Agent submitted two (2) insurance applications the clients did not agree to, that contained falsified client information, and the Agent electronically signed, pretending to be the client.

Additionally, it is alleged that the Agent violated s. 480(1)(a) of the Act, in that the Agent electronically signed twenty-four (24) insurance applications, acting as the client.

As such, it is alleged that the Agent acted contrary to s. 480(1)(a) of the Act and is guilty of fraud, deceit, dishonesty, untrustworthiness, and/or misrepresentation.

Facts and Evidence The matter proceeded to Council by way of a written Report to Council dated September 26, 2024 (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. In arriving at their conclusion, the Council carefully weighed all of the evidence presented.

The Agent held Life and Accident and Sickness (A&S) certificates of authority from November 24, 2021, to June 30, 2024.

The AIC commenced an investigation in response to an email received from [R.H.] [redacted] and [S.H.] [redacted] (hereinafter, the “Complainants”), dated February 17, 2023, which stated: […]

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My [spouse] [redacted], works at [P.T.A.] [redacted]. That company is associated with [A.I.L.I.C.] [redacted] (hereinafter the “Insurer”); they contacted us over a year ago asking if we need insurance from them. We mentioned we already have coverage […] but that we would like to compare their policies with our current ones […]. We had a zoom meeting with 3 representatives from [the Insurer] [redacted] in September 2022. We didn’t agree to any policy. We didn’t give any banking information. We didn’t give our SIN. We didn’t give our driver’s license numbers. […] We let [the Insurer] [redacted] know that we would not be pursuing any coverage with them, however since then we have received numerous physical mail showing what appears to be approved insurance policies with [the Insurer] [redacted]. Things recently are starting to get weird, and have crossed the line into fraud I’m pretty sure.

Have a look at the attached document where they’ve made up Social Insurance Numbers and drivers license numbers for both my [spouse] [redacted] and I, and even forged our signatures. They have our kids names on the document as well. The document looks like it is designed to fool us into signing on with them. The document has our false personal information (drivers license number, forged signatures, fake SIN etc.) We’ve asked them to stop sending us any more mail and remove our contact info from their mailing lists. […]

In the same email of February 17, 2024, the Complainants provided the following information: 1. Policy Number CD****244 [redacted] (hereinafter “Policy 224”), in the name of [S.H.] [redacted] (hereinafter “Client 1”), and 2. Policy Number CD****882 [redacted] (hereinafter “Policy 882”), in the name of Client 1.

Policy 224 in the name of Client 1 provided the following information: Client Name Policy Date Policy Number [Client 1] October 18, 2022 CD****224 [redacted] [redacted]

Client Information on the Policy Driver’s License Number: *****325 [redacted]

SIN: ***-***-621 [redacted]

Email Address of Client: Sko*****ss@gmail.com [redacted]

Email Address on DocuSign Signature: Ro**********12@gmail.com [redacted]

Policy 882 in the name of Client 1 provided the following information: Client Name Policy Date Policy Number [Client 1] December 27, 2022 CD****882 [redacted] [redacted]

Client Information on the Policy Driver’s License Number: *****325 [redacted]

SIN: ***-***-621 [redacted]

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Email Address of Client: Sko*****ss@gmail.com [redacted]

Email Address on DocuSign Signature: Ro**********12@gmail.com [redacted]

On February 23, 2023, the AIC investigator requested the following information from the Complainants: […] I will investigate the matter regarding [the Insurer’s] [redacted] agents […]. To assist in my investigation, please provide the following documents and/ or information:

• • • • • […]

Any/all correspondence with [the Insurer] [redacted] and their agents/affiliates; and, Any/all documents mailed to you by [the Insurer] [redacted] regarding this matter; and, Quotes provided to you; and, A copy of your driver’s licenses; and, Any other documents you feel may help my understanding of the material facts

On February 24, 2023, the Complainants provided the following information: […] Our end goal is: We don’t want to hear from them again and we are glad you are seeing the mail they are sending us as I’m sure that something very unusual is happening (fake SIN’s, fake drivers license numbers, erroneous typos with our mailing address, phone numbers etc.)

[…] As I’ve stated earlier, we did not sign up with [the Insurer] [redacted]. We just want their physical mail to stop (a request by us which has gone ignored by them) and we want to ensure our privacy is protected. […]

On March 3, 2023, the AIC investigator requested the Complainants provide the following: […] Could you confirm the agent(s) name(s) you were speaking with regarding quotes? Please provide any/all correspondence between the agent(s) regarding this matter. […]

On March 6, 2023, the Complainants provided the AIC investigator the following information: […] My [spouse] [redacted] was asked by representatives at [the Insurer] [redacted] to have a zoom meeting to go over their policies, as sort of a first introductions courtesy call. During that zoom meeting, there were three people acting on behalf of [the Insurer] [redacted] and their names are: [redacted] Mohammad Awdi Mody Awdi

We don’t have any email correspondence with them and the zoom meeting was planned over the phone. […]

On April 25, 2023, the Insurer provided the AIC investigator with the following information:

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[…] [The Insurer’s] [redacted] procedures surrounding docusigned document verification.

DocuSign signing software is integrated into [the Insurer’s] [redacted] electronic application software. During the application process, the agent obtains an email address from the customer. This email address is used to send the customer application forms for review and signature. After the customer reviews and completes the application by electronic signature, a DocuSign signature certificate is sent as verification to the Company. […] [Emphasis added in original document]

On October 26, 2023, the Agent provided the AIC investigator with the following information: […] Regarding your investigations of the allegations made by [the Complainants] [redacted] about falsified applications I had submitted without their knowledge, I will provide a detailed response to address the information you have requested.

I would like to make it clear that I have never directly spoken to or interacted with either [Complainant] [redacted]. My only involvement with the application process for these clients, was assisting the agent, [C.T.] [redacted] (hereinafter “Agent 1”) with a technical error on [the Insurer’s] [redacted] system that prevented [Agent 1] [redacted] from uploading the information from [Agent 1’s] [redacted] computer. […]

While contracted with [the Insurer] [redacted], my position was as a manager, and I had trained agents that were new to the team and provided sales support.

[Agent 1] [redacted] was one of the agents on my team and I became aware of [the Complainants] [redacted] after they met with [Agent 1] [redacted] to complete applications. […]. [Agent 1] [redacted] met with the clients over zoom around September of 2022. I was not present for that meeting because [Agent 1] [redacted] had completed the necessary training to complete independent sales. My role as [Agent 1’s] [redacted] manager was to check in after client meetings to talk about how everything went and/or provide support to address any questions/problems etc. When I spoke to [Agent 1] [redacted] to follow up with [Agent 1] [redacted] after [Agent 1] [redacted] finished the meeting with [the Complainants] [redacted], it was over the phone. [Agent 1] [redacted] mentioned that it all went well, [Agent 1] [redacted] spoke with the clients, did the presentation for [the Complainants] [redacted] presumably filled out the application with no problems. [Agent 1] [redacted], was the only agent who spoke/dealt with the clients directly, that I am aware of.

After [Agent 1] [redacted] wrote the application (electronic application) it was uploaded to the [Insurer’s] [redacted] system for review. The way I do the review is by making sure all the questions answered, boxes checked off, etc. When it comes to Social Insurance Number, Drivers License, and Banking information listed on application; I am only able to verify if the right number of digits are provided as there is no verification method for this on the [Insurer’s] [redacted] system. The verification is to be completed through call verification and underwriting after application submission. Since I was not present for the client meetings with [the Complainants] [redacted], I did not collect any information and cannot verify any ID information or banking details. This is the responsibility of the agent completing the same and the agent should be reviewing these documents on Zoom and recording the details accurately on the application. My role in the application submission was solely a review and approval for the submission of the application. I did not physically sign my name on the application as an agent, whatsoever. On the [Insurer’s] [redacted] website, there is a notes tab/feature where we are able to keep notes temporarily before submission. To my knowledge, that is the only section where my name would appear. After the application is submitted, it goes through the system to be billed/debited and approved, then details/record of the manager that reviewed the application are removed.

I recall that after [Agent 1] [redacted] wrote the sale, it was reviewed and submitted to be billed, verified and

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underwritten. A few days later we were notified that the billing came back as an NSF, twice. […] I had access to view [Agent 1’s] [redacted] MOD’s because at the time of sale, I was [Agent 1’s] [redacted] manager. When I saw the first NSF notice come in regarding [the Complainants] [redacted], it was early October 2022 and I made sure [Agent 1] [ redacted] was aware. I sent [Agent 1] [redacted] a message via text also spoke to [Agent 1] [redacted] directly to inform [Agent 1] [redacted] that [Agent 1] [redacted] received this notice and must contact client. […] Shortly after our conversation, the policy had lapsed because it did in fact NSF twice. When this notification was received, I connected with [Agent 1] [redacted] and asked that [Agent 1] [redacted] reach out to the clients to reinstate their insurance policy. [Agent 1] [redacted] reassured my that [Agent 1] [redacted] would speak with them but as time went on [Agent 1] [redacted] was not able to get ahold [sic] of them. As a manager, I offered support also tried to call the clients myself. Each time I called the clients, the call either was disconnected or would just endlessly ring with no answer or voicemail. At [the Insurer] [redacted] the head office has a routine verification call, where the client is contacted one week after the date of the sale, for all clients. The call verification must be completed or the policy will also be cancelled/voided. If there are issues with the verification process and the client does not answer, the agent who wrote the sale will receive an email from head office advising they were unable to complete the verification due to various reasons, which may include a wrong number, no answer etc. Since I was [Agent 1’s] [redacted] manager, I am cc’d on these communications sent to the agents in my team. When I received the notification about [the Complainants] [redacted], I contacted [Agent 1] [redacted] and talked about it with [Agent 1] [redacted] so I can confirm that [Agent 1] [redacted] was aware of the failed verification. […] From my conversation with [Agent 1] [redacted], I assumed at that time, it was honest mistake and [Agent 1] [redacted] either wrote down the number wrong or the client just didn’t answer the phone. I asked [Agent 1] [redacted] to reach out to the client […] and tell them to call the head office directly to do the verification call. Because contact could not be re-established with the clients, the coverage was never reinstated, to my knowledge. […]

The last time [Client 1] [redacted] was discussed with [Agent 1] [redacted] ([…]) was February 6, 2023, when I asked, “did [Client 1] [redacted] reach out that [Client 1] [redacted] wants to put things back to normal?” By normal, I meant that the contact and banking was updated for reinstatement of [Client 1’s] [redacted] initial application for insurance. [Agent 1] [redacted] did not reply back saying [Client 1] [redacted] got in contact […]. There is also another screenshot I listed showing [Agent 1] [redacted] mentioning that [Client 1] [redacted] wanted to change [Client 1’s] [redacted] bank account to have control of it. All communication were directly dealt between [Agent 1] [redacted] and [the Complainants] [redacted]. Since I heard nothing more from [Agent 1] [redacted] on this matter, I assumed it was handled and left this with [Agent 1] [redacted] as the agent.

Early April 2023 my Manager at the time, [M.M.] [redacted] (hereinafter the “Manager”) asked me to join [the Manager] [redacted] for a zoom meeting that day. Once I entered [the Manager’s] [redacted] zoom room [the Manager] [redacted] was present as well as [R.A.] [redacted] and [R.B.] [redacted (hereinafter the “Compliance Team”) who were part of the compliance team, wanted to speak with me. I was notified right then and there about the situation pertaining to [the Complainants] [redacted] and their complaint. I was asked if I was aware or had any involvement in the sale. I provided [the Insurer’s] [redacted] compliance team, and my direct manager, all of the information that I had as well as a summary of conversations with [Agent 1] [redacted]. I was also asked whose bank account was linked to the application because it was not the clients banking. I was advised that the premiums were billed for at least 2 months from an account that was not the clients. Since I didn’t personally record the banking details or view a VOID cheque, I could not confirm whose banking details were provided. I was advised the [the Insurer’s] [redacted] compliance team would be speaking with [Agent 1] [redacted] and they asked that I provide all of the details I had regarding this sale and communications with [Agent 1] [redacted], which I did. Shortly after the meeting with [the Insurer’s] [redacted] compliance, I was advised that [Agent 1] [redacted] submitted [Agent 1’s] [redacted] resignation, did not meet with the compliance department and was unresponsive.

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Life Insurance Council

In Fall 2022 [Agent 1] [redacted] had an issue with the eapps not working properly. The issue was when [Agent 1] [redacted] wrote [Agent 1’s] [redacted] eapp sales and submitted them to [the Insurer] [redacted] they would not post, so the sale was not recorded, reviewed or received. When this was brought to my attention, we reached out to our office’s tech team for a resolution on the matter. […]. To trouble shoot the issue, I was able to log in to [Agent 1’s] [redacted] eapp platform and tested to write a sale from my computer to see if it would work and then submitted it to [the Insurer] [redacted]. From my end it would show up properly but for [Agent 1] [redacted], there was a lag time for posting that could not be appropriately managed to confirm what was received and what remained to be posted due to the lag time. I didn’t give the issues too much thought as it was a reported technical error and the eapp platform is not perfect. Until [Agent 1’s] [redacted] issues were fixed, I offered support and [Agent 1] [redacted] asked that I submit a couple of the applications/sales to help [Agent 1] [redacted] out. [Agent 1] [redacted] would give me all the information [Agent 1] [redacted] collected from the client/sale and I would submit the application (with [Agent 1] [redacted] as the noted agent) from end because I usually view the applications [Agent 1] [redacted] submits, regardless. I never knew any information provided to me would be illegitimate. There is a code of conduct regarding ethical sales practices and had no evidence to suspect that [Agent 1’s] [redacted] conduct was to be contrary. […]. I cannot recall if one of the applications I assisted [Agent 1] [redacted] with submitting, belonged to [the Complainants] [redacted]. I had only done this for a few applications and for a very short time period. This was only done to assist [Agent 1] [redacted] because [Agent 1] [redacted] was a part of my team and I never thought any of this would happen. […]

[P.J.] [redacted] (hereinafter “Agent 2”) – [Agent 2] [redacted] was a member of [Agent 1’s] [redacted] team and also [Agent 1’s] [redacted] friend that [Agent 1] [redacted] personally recruited into the company. The relationship was ampicable [sic] and well, [Agent 1] [redacted] was learning and training [Agent 2] [redacted] […] most of the time unless I was asked for tips and ways to better help as I was always available to support [Agent 2] [redacted]. The reason [Agent 2] [redacted] got involved in [the Complainants] [redacted] matter is whenever a new agent comes on board and gets licensed. They need to be coded in order to activate their agent license. To do that, they need to be able to sell a client at least $1 or more of a sale with their name on the application to activate their agent number within [the Insurer] [redacted]. So [Agent 1] [redacted] was in charge of doing so because it is the responsibility of [Agent 2’s] [redacted] direct manager ([Agent 1] [redacted]) and [Agent 2] [redacted] used [Client 1’s] [redacted] name as the application to do the code sale. […]

On December 14, 2023, the AIC investigator requested the following information from the Insurer: […] Further to AIC cases […], regarding [the Complainants] [redacted] complaint alleging false applications were submitted without their knowledge, I have some additional questions:

1. 2.

3. 4.

5. 6. 7.

8.

What is your standard process for the submission of applications? (please be specific) How does [the Insurer] [redacted] identify which agent submits the application? If it uses Identifying codes for the agents, how and when are those assigned? Please provide [the Compliance Team’s] [redacted] interviews/investigation file related to this matter. What system does [the Insurer] [redacted] have in place to verify the electronic signatures of the applicants and the agents?

[…] […] […]

Mohamad Awdi: a. Please provide a list of all business submitted by Mohamad Awdi between November 21, 2021 and July 5, 2023, when he resigned. b. Please provide a list of commissions earned, any chargebacks, any payments by Mohamad for any debt, and current balances owing if any.

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9. A list of any/all applications/policies where the email address ro**********12@gmail.com [redacted] was used for signatures. […]

On February 5, 2024, the Insurer provided the following information to the AIC investigator: 1. A letter dated February 5, 2024 (hereinafter the “February 2024 Correspondence”), and 2. Interviews/investigation files from the Compliance Team related to this matter (hereinafter the “Insurer’s Investigation Notes”).

The February 2024 Correspondence provided the following information: […] 1. What is your standard process for the submission of applications? (please be specific)

[The Insurer’s] [redacted] agents use the company provided software to completed applications and obtain customer signature. Once an agent and the customer complete an application, the agent uses the same software installed on his or her computer to send the application to the company. When the company receives the application, the review and underwriting process begins.

2.

How does [the Insurer] [redacted] identify which agent submits the application? If it uses Identifying codes for the agents, how and when are those assigned?

a)

How does [the Insurer] [redacted] identify which agent submits the application? Each agent uses his or her unique username and password to log into the software. [The Insurer] [redacted] identifies which agent submitted the application based on their agent number and signature.

b) If it uses Identifying codes for the agents, how and when are those assigned? Each agent is assigned a unique code number by the Company when authorized to represent the company in the province in which agent is licensed.

3. 4.

5. 9.

[…] What system does [the Insurer] [redacted] have in place to verify the electronic signatures of the applicants and the agents?

[The Insurer’s] [redacted] electronic application software has an integrated third-party signature platform to ensure the proper collection of signatures. At the application process, the agent requests an email address from the customer, to which the electronic application is emailed to the customer for review and electronic signature. A DocuSign signature certificate is also sent to the company as verification. […] A list of any/all applications/policies where the email address ro**********12@gmail.com [redacted] was used for signatures.

Below is the list of applications where the email address ro**********12@gmail.com [redacted] was used for signatures:

• •

[B.C.] [redacted] [A.L.] [redacted]

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[A.V.] [redacted], [R.V.] [redacted], [M.V.] [redacted], AND [W.V.] [redacted] [F.V.] [redacted], [E.V.] [redacted], AND [F.V.] [redacted] [Client 1] [redacted] [P.M.] [redacted] [C.K.] [redacted] [A.M.] [redacted] [S.S.] [redacted] AND [J.S.] [redacted] [B.B.] [redacted] [J.C.] [redacted] [T.J.] [redacted] [A.D.] [redacted] [B.S.] [redacted] [A.H.] [redacted] AND [J.R.] [redacted] [S.R.] [redacted] AND [K.P.] [redacted] [K.B.] [redacted]

The Insurer’s Investigation Notes provided the following information: […] When we reviewed the letter from the Alberta Insurance Council dated April 3, 2023, regarding [the Complainants’] [redacted] applications, we contacted agents who submitted applications on behalf of [the Complainants’] [redacted] […]. We also gathered details from [redacted] manager, Mohamad Awdi.

Below are the details we have noted for each agent involved with [the Complainants’] [redacted] applications: […] Mohamad Awdi:

• •

• •

• • • […]

[Agent 1] [redacted] and [Agent 2] [redacted] were supervised by Mohamad Awdi. Mohamad Awdi explained that he completed one of the applications for [Client 1] [redacted] (#CD****224 [redacted]) and used [K.J.’s] [redacted] personal username and password to submit the application without [Client 1’s] [redacted] knowledge. Mohamad confirmed that the email address ro**********12@gmail.com [redacted] was his email address. Mohamad denied owning the bank account entered on [the Complainants’] [redacted] applications. He said he believed the bank account listed on [the Complainants’] [redacted] applications belonged to [Agent 1] [redacted]. Mohamad confirmed he did not have [the Complainants’] [redacted] authorization to submit the application. A resignation was received from Mohamad on May 5 th , 2023 Mohamad Awdi’s Contract with [the Insurer] [redacted] was terminated on May 25 th , 2023.

On June 12, 2024, the Insurer provided the AIC investigator copies of the following insurance policy applications: 1. Policy Number CD****113 [redacted] (hereinafter “Policy 113”), in the name of [A.D.] [redacted] (hereinafter “Client 2”), 2. Policy Number CD****668 [redacted] (hereinafter “Policy 668”), in the name of [B.S.] [redacted] (hereinafter “Client 3”),