Without divulging details, the Insurance Councils of Saskatchewan (ICS) published a new consensual agreement and undertaking between the Life Insurance Council of Saskatchewan (LICS) and Paula Mae Espinosa, wherein Espinosa agrees to pay the council $1,630 for failing to maintain the financial security required for insurance intermediaries.
Specifically, the undertaking points out that every business which applies for or holds an insurance agent’s license for life, accident and sickness insurance business must maintain and annually provide proof of a valid policy of errors and omissions (E&O) insurance. In Saskatchewan, such policies must provide a minimum of $1-million in coverage for any one occurrence and a minimum aggregate limit of $1-million with respect to all occurrences within a year. It must also include $1-million in extended coverage for losses resulting from fraudulent or dishonest acts.
The undertaking also discusses material misstatements made in applications for licensure in the province and notes that agents must notify the life insurance council immediately when there is any failure to maintain the prescribed financial security requirements.
Broken down, Espinosa’s sanctions include a penalty of $1,300 and investigation costs totalling $330. “The licensee waives her 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,” the undertaking states.
