DECISION
IN THE MATTER OF THE GENERAL INSURANCE COUNCIL OF SASKATCHEWAN (Council)
MARKET PRACTICES COMMITTEE (Committee)
RESPECTING
Farms and Families of North America Incorporated a/o/a Farmers of North America (Licensee)
The Committee is authorized under Council’s Bylaw 2, section 2-3, to investigate complaints and adjudicate or mediate disputes respecting alleged non-compliance with The Insurance Act (the Act), The Insurance Regulations (the regulations) and the General Insurance Council’s Bylaws (Bylaws) by applicants, licensees or persons who are required to be licensees pursuant to clause 5-31(3)(i) of the regulations, and to make decisions respecting penalties and other charges pursuant to clause 5-31(3)(k) of the regulations.
The Insurance Councils of Saskatchewan (ICS) Compliance and Enforcement Branch of the (Compliance) investigated the actions of the Licensee in relation to the fact its errors and omissions (E&O) coverage lapsed for the period April 1, 2024, to May 8, 2024. A Notice of Proposed Action dated June 11, 2025, which enclosed an investigation report including exhibits and Consensual Agreement and Undertaking (Agreement), was delivered to the Licensee notifying the Designated Representative (DR) that fines were being sought against the Licensee for breaching Council’s Bylaws. Those documents were delivered by registered mail to the address of the Licensee on June 13, 2025.
The DR, on behalf of the Licensee, did not respond within the required time nor provide written representations or request a hearing to advise the Committee why the Licensee felt that the actions identified in the Agreement should not be taken, pursuant to section 10-11(3) of the Act.
Decision Farms and Families of North America Incorporated o/a/a Farmers of North America James (Jim) Mann, Designated Representative November 7, 2025
As the Licensee failed to meet the requirements of section 10-11(3) of the Act within the required time, the Committee has confirmed that the actions outlined in the June 13, 2025 Agreement will be taken, pursuant to section 10-11(6) of the Act.
MISCONDUCT AND BYLAW VIOLATIONS BY THE LICENSEE:
The Act, Section 5-23 Cancellation of recommendation by designated representative
If a designated representative who recommended that an individual be issued an insurance agent’s licence cancels the recommendation:
(a) the licence is automatically suspended; and (b) the designated representative shall immediately notify the Superintendent in writing of the cancellation and the specific reasons for the cancellation.
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: (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 Agency; and (iii) 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:
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Decision Farms and Families of North America Incorporated o/a/a Farmers of North America James (Jim) Mann, Designated Representative November 7, 2025
[…] (c) to immediately notify [Council] of: […] (v) any withdrawal of a licence recommendation.
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 of these bylaws.
(2) Without limiting the generality of subsection 4-1(1), a Agency may be guilty of misconduct if the Agency: […] (k) makes a material misstatement in an application for licence or report to continue a licence, pursuant to clauses 5-39(1)(a) and 5-64(1)(a) of the Act;
REASON FOR THE DECISION:
1. A review of the licensing file has confirmed that there was a lapse in valid E&O insurance from April 1, 2024, to May 8, 2024 (37 days).
2. The DR received email reminders from ICS to advise that the Agency E&O insurance would or had lapse(d).
3. The Agency DR previously received a Cautionary Letter on June 20, 2019, for a three (3) day lapse.
4. Under our preliminary view that the Agency DR has made material misstatements on their 2024 ARF by not disclosing their previous disciplinary action and indicating that they had maintained valid E&O insurance for the 2023-2024 reporting period.
5. The DR did not immediately notify Council when Helga Miehle stopped working for the Agency and instead advised Council more than four (4) months later.
6. Licensed individuals hold a position of trust. It is the utmost importance that they act in accordance with the law and always conduct themselves with integrity and honesty.
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7.
8.
Decision Farms and Families of North America Incorporated o/a/a Farmers of North America James (Jim) Mann, Designated Representative November 7, 2025
Trustworthiness and a commitment to following the governing regulations are important attributes of a licensee.
We are inclined to find that the Agency DR continues to show a lack of respect for the ICS regulatory requirements. It appears after two (2) E&O lapses that their current and past conduct poses a concern for consumer protection as the risks associated with not maintaining an E&O policy are significant.
It appears the repetitive nature of the contraventions is significant and diminishes our confidence that the Agency will comply with the Act, the regulations or ICS Bylaws in the future.
THE COMMITTEE HEREBY ORDERS THAT:
1.
2.
The Licensee pay the following fines:
Bylaw 3-1(4)(c)(v) for failure to notify Bylaw 4-1(1)(c) for 2024 E&O Lapse Bylaw 4-1(2)(k) for material misstatement(s) 2024 Annual Reporting Form
Costs of investigation: 4 hours at $110.00 per hour
$300.00 $ 81.00 $300.00
$440.00
Total: $1121.00 The Licensee must pay the fine within 30 days of his receipt of this Decision, pursuant to section 5-39(3) of the Act.
November 7, 2025 Dated at Regina, in the Province of Saskatchewan, this _________________ day of November 2025.
Originally signed by: ______________________________ Ariel Dwyer, Chair Market Practices Committee
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Appendix A – Legislative Provisions The Insurance Act “appeal panel” means a panel established pursuant to section 17 of The Financial and Consumer Affairs Authority of Saskatchewan Act to hear appeals with respect to this Act;
Appeal of decision or order of insurance council 10-34(1) A decision or order made by an insurance council or a committee of an insurance council pursuant to Part V may be appealed to the appeal panel by: (a) an applicant who has been refused a licence or endorsement if the Superintendent’s powers to issue or refuse a licence have been delegated to the insurance council; (b) an applicant or licensee whose licence or endorsement is made subject to any limitation, restriction, term or condition or any new, additional or amended limitation, restriction, term or condition if the Superintendent’s powers to impose limitations, restrictions, terms and conditions on licences or endorsements have been delegated to the insurance council; (c) an applicant who has been refused reinstatement of a licence or an endorsement if the Superintendent’s powers to reinstate licences or endorsements have been delegated to the insurance council; (d) a licensee whose licence has been suspended or cancelled if the Superintendent’s powers to suspend or cancel licences or endorsements have been delegated to the insurance council; or (e) a person required to pay a penalty or costs assessed in accordance with the regulations.
(2) A notice of appeal must be in writing and must be served on the insurance council and the Superintendent and filed with the chairperson of the Authority within 30 days after the date of the insurance council’s decision or order.
Extension of time 10-35 A person mentioned in subsection 10-33(1) or 10-34(1) may apply to the appeal panel for an extension of the time within which an appeal may be commenced, and the appeal panel may, if the appeal panel considers it reasonable to do so, make an order extending the time within which the appeal may be commenced.
Notice of appeal 10-36(1) A written notice of appeal must set out: (a) all grounds on which the appeal is based, including: (i) the nature of any error alleged in the Superintendent’s or insurance council’s decision or order, as the case may be; and (ii) the specific grounds on which it is alleged that an error exists; (b) in summary form, the material facts on which the appellant relies; and
(c) an address for the appellant for service of documents relating to the appeal. (2) If, in the opinion of the appeal panel, a person fails to provide information required pursuant to subsection (1), the appeal panel may, at any time before determining the appeal, require the person to provide the information within a specified time, and, if the person does not provide the information within that time, the appeal panel may dismiss the appeal.
(3) Within five business days after receiving the notice of appeal, the appeal panel shall fix a date and place for hearing the appeal.
(4) After receiving a notice of appeal pursuant to subsection (1), the Superintendent or insurance council, as the case may be, shall as soon as is reasonably possible provide to the appeal panel a copy of: (a) any information, evidence or material the Superintendent or insurance council relied on or considered in making the decision or order that is the subject of the notice of appeal; (b) the transcript of any hearing conducted by the Superintendent or insurance council respecting the decision or order that is the subject of the notice of appeal; (c) the decision or order that is the subject of the notice of appeal and any reasons for the decision or order provided to the appellant by the Superintendent or insurance council.
(5) The Superintendent or insurance council, as the case may be, shall provide to the appellant or the appellant’s lawyer or agent a copy of the documents provided to the appeal panel pursuant to subsection (4) if the appellant or the appellant’s lawyer or agent pays to the Superintendent or insurance council, as the case may be, the reasonable costs of making and providing a copy.
Rules re appeals 10-37(1) Subject to subsection (2), the appeal panel shall determine the appeal on the basis of: (a) the notice of appeal; (b) any information provided pursuant to subsection 10-36(2); and (c) the materials provided pursuant to subsection 10-36(4).
(2) If the appellant or the appellant’s lawyer or agent applies to the appeal panel to present new or additional evidence, the appeal panel may authorize the appellant to introduce the new or additional evidence.
(3) If the appellant or the appellant’s lawyer or agent presents new or additional evidence during the hearing of an appeal, the appeal panel may, if it considers it to be appropriate to do so:
(a) consider the new or additional evidence; (b) exclude the new or additional evidence; (c) direct a new hearing by the Superintendent or the insurance council on the basis of the new or additional evidence and the materials mentioned in subsection 10-36(2); or (d) direct further inquiries by the Superintendent or the insurance council.
(4) On an appeal pursuant to sections 10-33 and 10-34, the appeal panel may do any of the following: (a) dismiss the appeal; (b) allow the appeal; (c) direct a new hearing or further inquiries by the Superintendent or the insurance council; (d) vary the decision or order of the Superintendent or the insurance council; (e) substitute the appeal panel’s own decision for the decision of the Superintendent or the insurance council; (f) in the case of an appeal pursuant to section 10-34, order the insurance council to issue or reinstate the licence or endorsement; (g) if applicable, vary any terms and conditions imposed by the Superintendent or insurance council on the appellant’s licence or endorsement; (h) make any order as to costs that the appeal panel considers appropriate.
(5) The Superintendent is entitled to be heard, by a lawyer or otherwise, at the hearing of an appeal pursuant to section 10-33 or 10-34 and on any application connected with the appeal.
(6) The insurance council is entitled to be heard, by a lawyer or otherwise at the council’s own expense, at the hearing of an appeal pursuant to section 10-34 and on any application connected with the appeal.
(7) The appeal panel shall provide a decision, in writing, including the reasons for the decision to: (a) in the case of an appeal pursuant to section 10-33, the appellant and the Superintendent; and (b) in the case of an appeal pursuant to section 10-34, the appellant, the insurance council and the Superintendent.
(8) The commencement of an appeal pursuant to section 10-33 or 10-34 does not stay the effect of the decision or order appealed from, but, on five business days’ notice to the Superintendent and the insurance council, if applicable, the appellant may apply to the appeal panel for a stay of the decision or order pending the disposition of the appeal.