Superintendent of Financial Services Regarding the life insurance agent licence of Mr. Dean Eric Bezanson
AND the Insurance Act, R.S.O. 1990, c.1.8, as amended, particularly subsections 393(9) - 393(11)
DECISION Introduction: A Notice of Opportunity for Hearing dated August 26, 2009 (the Notice) informed Mr. Bezanson of allegations against him and the opportunity for a hearing before an Advisory Board. The Notice advised Mr. Bezanson that if a hearing was not requested, the Superintendent would make a decision based on information in the possession of the Financial Services Commission of Ontario (the Commission). Mr. Bezanson was also advised that such decision could include suspension or revocation of his licence as a life insurance agent.
I have received an affidavit from I . legal counsel at the Commission that the Notice was served by registered mail to the address on file at the Commission. memo further indicated that the registered letter was returned unclaimed by Canada Post. The Insurance Act provides that service can be made by registered mail at the last known address of a person on file at the Commission. I am satisfied that the Notice was properly served in accordance with the provisions of the Insurance Act.
A copy of the allegation is attached to this Decision. The Evidence: Since Mr. Bezanson has notrequested a hearing, the evidence of Commission staff in the particulars attached to the Notice is uncontroverted.
The evidence can be summarized as follows. The Commission received notification from Mr. Bezanson's insurance company that Mr. Bezanson's errors and omissions insurance policy was cancelled. The Commission made several attempts to contact him by mail, registered mail and by telephone without success.
Findings of Fact I find the allegation that Mr. Bezanson has failed to maintai n appropriate errors and omissions insurance to be established. The reasons for this finding are the notifica tion of cancellation of the policy by Mr. Bezanson's insurance company and Mr. Bezanson's failure to respond to the several attempts by the Commission to contact him.
In the absence of testimony by Mr. Bezanson, I am not aware of any explanations forhis behaviour or mitigating circumstances.
Decision: I have found that Mr. Bezanson has failed to maintain errors and omissions insurance as is required by regulation 347/04.
Errors and omissions insurance is necessary to protect consumers from negligence by insurance agents. Insurance agents without errors and omissions insurance may not have sufficient assets to indemnify policy holders or applicants for insurance from such losses. Accord ingly insurance agents that do not have erro rs and omissions insurance cannot be allowed to be engaged in the business of insurance.
In this case, Mr. Bezanson would not respond to the Commission on this matter. Insurance agents must be governable and amenable to being regulated. The Insurance Act imposes a duty on licensed persons to facilitate an examination. Responding to information requests is an attribute of a person suitable to be an insurance agent.
Since Mr. Bezanson has not requested a hearing, there are no explanations for his behaviour, nor is there any demonstrated interest in maintaining his licence as an insurance agent.
Accordingly considering the lack of suitability to hold a licence as an insurance agent as demonstrated by the failure to facilitate an examination, the absence of the necessary insurance to protect the public and lack of any explanat ion for such behaviour, I believe that the appropriate penalty is revocation of Mr. Bezanson's licence as an insurance agent.
Accordingly, I hereby revoke the life insurance agent licence of Mr. Dean Eric Bezanson.
Dated at Toronto, this 17th day of October, 2009 Executive Director, Licensing and Market Conduct by delegated Authority from Superintendent of Financial Services
Schedule 1 The following allegation was set out in the Notice: 1. Mr. Bezanson has failed to maintain appropria te errors and omissions insurance as is required by section 13 of regulation 347/04 .