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FILE AB067·2009 Superintendent of Financial Services Rega rd ing the Insurance ACl, R.S.O. 1990, c.1.8, as amended , particularly subsections 393(9) - 393(11)
AND Eileen Mayer, life insurance agent DECISION Introduclion: Pursuant to a Notice of Hearing dated Novembe r 10, 2009, an Advisory Board was duly appo inted under Subsect ion 393 (9) of lhe Insurance Act. The hearing was conducted on February 22, 2010. The Advisory Board notes that Ms. Mayer attended the pre-hearing conference bUI failed to attend the hearing. The hearing proceeded in her abse nce.
The allegations were set out in Schedule "1" as attached. The report of the Advisory Board is attached . Findings of Facl The Advisory Board found lhat Ms. Mayer ailowed her errors and omissions insurance coverage 10 lapse for a period of approximately two months. The Advisory Board also found that over a period of approximately one year, Ms Mayer demonstrated a "careless attitude with respect to her obligation to communicate with the Commission, and apparently failed to appreciate the significance of full and complete co operation with her Regulator." The Advisory Board did not find that Ms Mayer was untrustworthy or unsuitable 10 hold a licence as an insurance agent.
Recommendalion of Advisory Board The Advisory Board recommended that: 1. Ms. Mayer's licence as an insurance agent be suspended for a period of lhree months . 2. The suspension be foilowed by a period of supervision by an
individual satisfactory to the Superintendent 3. Ms. Mayer be required to attend an appropriate course of education to ensure that she fully understands the regulatory requirements of maintaining a life insurance agent's licence.
The Advisory Board set out the factors it considered in makings its recommendation. It noted that "Although she did respond to requests for information from time to time, her responses were late or incomplete. Lack of cooperation of this type increases the cost of compliance enforcement: The Advisory Board also noted that the principles of specific and general deterrence require a penalty.
Decision and Order The Advisory Board found that Ms Mayer failed to maintain errors and omissions insurance for a period of two months and that she has "demonstrated a careless altitude with respect to her obliga tion to communicate with the Commission."
The Insurance Act impose s an obligation on licensed persons to facilitate an examination. This is necessary to enable the Superintendent to carry out his responsibilities to protect the public by investigating allegations against agents and other licensed persons. Failure to facilitate an examination wastes Commission resources that can otherwise be applied in the public interest and increases the cost of regulation. Failure to facilitate an examination also demonstrates a lack of respect for regulator.
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.
While Ms. Mayer requested a hearing, she failed to attend the hearing and did not provide any explanation for her absence . In so doing, she has continued a pattern of behaviour that has been demonstrated in her other dealings about her errors and omissions insurance with the Commission. The Advisory Board has not taken this into consideration in making its recommendation regarding penalty. I do consider it to be an aggravating circumstance, particularly considering that the allegations against her related in part to her behaviour towards her regulator, and these allegations were known to her at the time she failed to attend the hearing.
Since Ms. Mayer has not attended the hearing, there are no explana tions for her behaviour.
Accordingly the failure to facilitate an examination, the failure to attend a requested hearing and the lack of any explanation for such behaviour warrant a period of suspension to modify Ms. Mayer's unacceptable behaviour. The facts are not as serious as some other cases where there were failure to facilitate an examination and failure to attend a hearing and where, as a result, revocation of licences has been ordered . However, the recommended period of suspension is at the low end of the range that might be cons idered, especially considering the aggravating circumstances of her failure to attend the hearing without explanat ion.
I note that the Advisory Board has made recommendations about supervision and education. I agree that education can assist in modifying Ms. Mayer's behaviour. However, since there were no findings related to Ms. Mayer's dealings with her clients, I do not agree that the nexus between supervision and her behaviour is sufficiently clear to order supervision. However, I do believe that the desired behaviour can be enhanced with practice and accord ingly I will be ordering some performance standards for Ms . Ma yer's communication with the Commission as well as the obligation to provide defined informat ion to the Commission on a monthly basis for a period of eighteen months.
I hereby order the following suspension and conditions on Ms. Eileen Mayer's licence as an insurance agent:
1. Ms. Mayer's licence as an insurance agent be suspended for a period of three months commencing June 1, 2010 . 2. Ms. Mayer select a course dealing with professional ethics, responsibilities and compliance and seek approval from the Superintendent of Financial Services of the course chosen by September 1, 2010. 3. Ms. Mayer pay for the course. 4. Ms. Mayer provide evidence of satisfactory completion of the course to the Superintendent of Financial Services by June1, 2011. Such course shall be in addition to the continuing educatio n required by Regulation 347/04. 5. For a period of eighteen months commencing October 15, 2010. Ms. Mayer mail a letter each month bearing a post mark not later than the fifteenth day of the month to the Superintendent of Financial Services. listing all insurance applications she submitted to insurance companies during the preceding month . The letter shall not include the actual applications.
Dated at Toronto, this 16'" day of April, 2010 Grant Swanson Executive Director, Licensing and Market Conduct by delegated Authority from Superintendent of Financial Services
Schedule 1 The following allegations were set out in the Notice 1. Mayer demonstrated her untrustworthiness to transact the business of insurance per section 8(d) of regulation 347/04 by: a. Failing to maintain appropriate errors and omissions insurance as is required by Section 13 of regulation 347/04. b. She is not amenable to regulation and repeated efforts had to be made via telephone , email, and in-person visits before information could be obtained from Ms. Mayer.
2. Mayer is not otherwise suitable to continue her licence per section 8(d) of regulation 347/04 for the following reasons : a. Failing to maintain appropriate errors and omissio ns insurance as is required by Section 13 of regulation 347/04. b. She is not amenable to regulation and repeated efforts had to be made via telephone, email, and in-person visits before information could be obtained from Ms. Mayer.