CONSENSUAL AGREEMENT AND UNDERTAKING (“Agreement”)
Between
THE MARKET PRACTICES COMMITTEE (“Committee”) of
THE GENERAL INSURANCE COUNCIL OF SASKATCHEWAN (“Council”)
And Jeremy Krainyk (the “Licensee”)
The Licensee acknowledges and agrees that he received Notice regarding a proposed action, pursuant to Section 10-11 of The Insurance Act (the “Act”), and the reasons therefor, from Council, dated January 9, 2023.
The Licensee acknowledges and agrees that he is guilty of misconduct and that he violated The Act, The Insurance Regulations, and Council Bylaws 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: (c) every business that applies for or holds an insurance agent’s or managing general agent’s licence for crop hail insurance shall maintain and provide annually proof of a valid policy of errors and omissions insurance that:
Consensual Agreement and Undertaking Jeremy Krainyk
(i) provides a minimum of $250,000 coverage with respect to any one occurrence and a minimum aggregate limit of $500,000 with respect to all occurrences within a year; (ii) covers the insurance activities of the licensee; and (iii) is underwritten by an insurance company licensed to do business in Canada;
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.
(2) Without limiting the generality of subsection 4-1(1), a licensee may be guilty of misconduct if the licensee: … (u) fails to reasonably respond to inquiries from GICS or ICS;
The Licensee acknowledges and agrees that: a. The Licensee’s 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 and that he fully understands his rights and/or obligations.
b. The Licensee waives his 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 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 Insurance Regulations (the “regulations”) or Council Bylaws.
d. The Licensee has been advised that it is in his 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. e. The Licensee hereby affirms that he has read and understands the terms of this Agreement and that he is signing it voluntarily and of his own free will.
2
Consensual Agreement and Undertaking Jeremy Krainyk
The Licensee, having waived his rights, accepts and undertakes to fulfill the sanctions imposed by the Committee as follows:
a.
b.
c.
Pay a penalty in the amount of $372.00.
Pay the costs of investigation in the amount of 4 hours x $110.00 = $440.00.
Pay the fine and costs, in the total amount of $812.00 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_l_ly_ _s_i_g_n_e__d_ _b_y_:_ J_e__re__m__y_ _K_r_a_i_n_y_k______________ _____F__e_b_r_u_a__ry__ 1__5_, _2_0__2_3________________ Jeremy Krainyk Date
_____O__r_ig__in__a_l_ly_ _s_i_g_n_e__d_ _b_y_ _L_a_u__re__e_n_ _M__a_j_o_r_ _f_o_r_:___________ _______F_e__b_r_u_a_r_y_ _2_1__, _2_0__2_3______________ 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.