BR•lTISH COLUMBIA IN THE MATTER OF THE FINANCIAL INSTITUTIONS ACT RSBC 1996, CHAPTER 141
AND INDUSTRIAL ALLIANCE PACIFIC INSURANCE AND FINANCIAL SERVICES INC.
CONSENT ORDER WHEREAS the Superintendent of Financial Institutions ("Superintendent") ordered the investigation of Industrial Alliance Pacific Insurance and Financial Services Inc. ("lAP") practices and procedures in the selling of its vehicle financial creditor's group insurance products (the "Group Creditor Insurance") in British Columbia with which lAP cooperated;
AND WHEREAS lAP and the Staff of the Superintendent consent to the terms of this Order;
NOW THEREFORE the Superintendent orders, pursuant to Sections 244(2)(a), (e)(ii), and (f) and Section 237 of the Act, the following:
1) lAP will provide undertakings to put into place enhanced systems and procedures with respect to the sale of its Group Creditor Insurance in order to ensure that consumers further understand the product they are purchasing, that increased training for those selling the insurance is provided and with additional oversight of such sales.
2) lAP will ensure that persons conducting insurance business in the province of British Columbia comply with the licensing requirements of the Financial Institutions Act ("Act'') unless specifically exempt under that same legislation.
Superintendent of Ftnaneiallnstitutions 1200 -13450 102 M Avenue Surrey, Be V3T 5X3 Telephone: 604-953-5300 Facsimile: 604-953-5301 http://www.fic.gov.bc.ca
2 3) lAP will ensure that persons selling Group Creditor Insurance or any other lAP insurance cease and desist from issuing policies and certificates of insurance in the name of Seaboard Life by:
a. Identifying the dealers who have issued the certificates; b. Taking steps to remove the old certificates from these dealerships; and
c. Ensuring that lAP administration staff double-check certificates submitted to lAP and, if incorrect, issuing the correct certificate to the certificateholders;
4) lAP will immediately notify all holders of Seaboard Life policies and certificates issued after January 1, 2000 and which are still active of the company's correct name and confirm contact information. lAP will replace the policies with corrected documents within 30 days of the date of this Order;
5) The terms of this Order apply to the sale of Group Creditor Insurance when sold pursuant to the Insurance Licensing Exemption Regulation by unlicensed persons in British Columbia;
6) lAP will pay an amount of costs of the investigation of $57,179.00 pursuant to Section 241.1 of the Act; and
7) lAP waives its right of appeal under Section 242(1) of the Act. Dated at the City of Surrey, Province of British Columbia This~,.srday of October, 2008.
(VL"JL~~ W. Alan Clark -Superintendent of Financial Institutions Province of British Columbia
3 WITH THE CONSENT OF: INDUSTRIAL ALLIANCE PACIFIC INSURANCE AND FINANCIAL SERVICES INC.
c=p{~.~ Name: IfZi'1IA//\ XJI/UN- 130/'l/u'1 Title: Uf(~F Ll':::"GIlL COUI\Js/;;'-. AND: Sandra A. Wilkinson Solicitor for the Staff of the Superintendent of Financial Institutions