CONSENSUAL AGREEMENT AND UNDERTAKING (“Agreement”)
Between
THE MARKET PRACTICES COMMITTEE (“Committee”) Of
THE GENERAL INSURANCE COUNCIL OF SASKATCHEWAN (the “Council”)
And PANTER AGENCIES LTD. (“Licensee”)
The Licensee, through its designated representative Patrick Bryce Panter (the “DR”) acknowledges and agrees that it received Notice regarding a proposed action, pursuant to Section 10-11 of The Insurance Act (the “Act”), and the reasons therefor, from Council, dated September 21, 2022.
The Licensee acknowledges and agrees that it is guilty of misconduct and that it violated Council Bylaws and The Insurance Act (“the Act”) and the insurance Regulations as follows:
The Act, section 5-26 Financial security required for insurance intermediaries (1) Every business and individual that applies for or holds an insurance intermediary’s licence shall meet and maintain the prescribed financial security requirements.
Regulation 5-10 Financial security – insurance intermediaries and adjusters (1) For the purposes of subsections 5-26(1) and 5-47(1) of the Act:
(b) every business that applies for or holds an insurance agent’s licence for one or more classes of property and casualty insurance other than crop hail insurance shall maintain and provide annually: (i) proof of a valid policy of errors and omissions insurance that: (A) provides a minimum of $1,000,000 coverage with respect to any one occurrence and a minimum aggregate limit of $2,000,000 with respect to all occurrences within a year;
Consensual Agreement and Undertaking Panter Agencies Ltd.
(B) covers the insurance activities of the licensee; and (C) is underwritten by an insurance company licensed to do business in Canada; …
Bylaw 3-1 Licences and obligations (4) A licence imposes on the licensee, and if a business, the designated representative, obligations including but not limited to, the following: (c) to immediately notify [Council] of: (i) the failure to maintain the prescribed financial security requirements (errors and omissions insurance or the bond), pursuant to sections 5-10 and 5-23 of the regulations;
Bylaw 4-1 Professional misconduct (1) For the purposes of the Act, the regulations and these bylaws, professional misconduct is a question of fact but includes any matter, conduct or thing, whether or not disgraceful or dishonorable that: (c) is a breach of the Act, the regulations or these bylaws.
The Licensee breached Bylaw 4-1(1)(c) when it violated Bylaw 3-1(4)(c)(i) by failing to maintain E&O coverage for 306 days.
The Licensee, through its DR, acknowledges and agrees that: a. Its right to make a written submission to or appear before the Committee at an oral hearing to make representations as to why this action should not be taken has been explained to the DR and he fully understands the Licensee’s rights and/or obligations.
b. The Licensee waives its right to make a written submission to the Committee or to appear before the Committee at an oral hearing and chooses to resolve this matter by way of this Agreement and accordingly waives any right of appeal with respect to this action.
c. This Agreement does not preclude the Council from pursuing any other investigation and/or sanctions against the Licensee for activities not identified in this Agreement that may be in violation of the Act, the regulations or Council Bylaws.
d. The Licensee has been advised that it is in its best interest to obtain independent legal advice before entering into this Agreement. The Licensee has either:
a. obtained such independent legal advice prior to executing this Agreement; or b. has willingly chosen not to obtain such advice prior to executing this Agreement.
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e.
Consensual Agreement and Undertaking Panter Agencies Ltd.
The DR hereby affirms that he has read and understands the terms of this Agreement and is signing, on behalf of the Licensee, voluntarily and of his own free will.
The Licensee, having waived its rights, accepts and undertakes to fulfill the sanctions imposed by the Committees as follows:
a.
b.
c.
Pay a penalty in the amount of $2000.00
Pay the costs of investigation in the amount of 5 hours x $110.00 = $550.00
Pay the fine and costs within thirty (30) days from the date of this Agreement.
The Committee’s Agreement: Upon fulfillment of the sanctions imposed, the Committee agrees this to be the full and final resolution of the violations of Council’s Bylaws by the Licensee as outlined in this Agreement.
______O__r_ig__in__a_ll_y_ _s_ig__n_e_d__ _b_y_:_ P__a_t_ri_c_k_ _P_a__n_t_e_r_______________ ____S_e_p__t_e_m__b_e__r_ 1__4_, _2_0__2_2_______________ Patrick Bryce Panter, Designated Representative Date for Panter Agencies Ltd.
______O__ri_g_i_n_a__ll_y_ _s_ig__n_e_d__ b__y_ _A_n_n__e_ _P_a_r_k_e__r _f_o_r_:_____________ ____S__e_p_t_e_m__b__e_r_ _2_1_,_ 2__0_2_2_______________ THE MARKET PRACTICES COMMITTEE Date General Insurance Council of Saskatchewan
Penalties affecting insurance intermediary’s licence
5-39(3) If a penalty imposed against a holder of an insurance intermediary’s licence pursuant to subsection (2) is not paid within 30 days after the holder is served with the written notice of the penalty and the decision of the Superintendent is not appealed, the licence is automatically suspended immediately following the last date for paying the penalty or appealing the decision, whichever is later, and remains suspended until the penalty is paid or the licence expires.
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