After a client alleged that 26-year industry veteran, Harvey Johnson led them to believe they had an active policy in place when this was no longer the case, the life insurance council of the Alberta Insurance Council found Johnson had committed the act knowingly, recklessly or willingly.
“Based on the evidence provided, it is the council’s opinion that the client believed that a policy change had taken place,” the council writes in its decision.
Johnson currently holds life, accident and sickness certificates of authority, and has continuously held these since February 1996.
Johnson says the error was not the result of malicious intent on his part, but says his follow up processes needed to evolve. The decision document itemizes a list of communications between the client and the agent over the period where the client wished to split an existing policy, before letting it lapse. Payments made to reinstate the policy were refunded for being the wrong amount.
“The representative kept reassuring the client that her coverage was in force and that he had the policy to deliver. The client learned in February 2021 that she has no insurance with the insurer when she called the insurer client services department. Following this, she filed a complaint requesting to reinstate her policy with no back payments,” the decision documents state in a review of the allegations against Johnson.
The insurance company later reinstated the policy and issued a check to the client to refund any deferred sales charge fees she would incur to transfer her assets to a new institution. Johnson was ordered to pay a civil penalty of $5,000.
