A prior disciplinary history, out-of-province sales, false application attestations and failing to follow client instructions have led to new penalties for Pavit Singh Sandhu, sanctioned recently by the Insurance Council of British Columbia.
The agent was assessed a $5,000 fine, $1,862.50 in investigation costs, and must complete remedial coursework, including three ethics courses, a documentation course and, for the second time, the Council Rules Course for Life and/or Accident & Sickness Insurance Agents.
Sandhu had previously been ordered to complete the same course in 2017 when he was fined $500 for not completing sufficient continuing education.
Licensed since June 2016, the agent reportedly manages several hundred licensees and supervises 20 of them, this according to the insurance council’s intended decision. Beginning no later than early August, Sandhu must instead be supervised himself for a period of two years.
First reported by a life insurer in March 2024 (the insurer terminated Sandhu’s contract for forgery, improper paperwork, licensing violations and questions regarding trustworthiness), it was found that between February 2021 and January 2023 processed four applications for clients outside of his home province. “Additionally on all four application forms, the licensee falsely indicated that the client’s identity verifications had been completed in person and that the province of signatures was British Columbia. The applications were electronically signed from an internet protocol address located in Abbotsford, BC. These policies are currently terminated,” the intended decision states.
During its review of Sandhu’s business, the insurer also found that the agent had shredded all documents related to the clients during an office move – against the agency’s own retention policy which requires all client files and records to be retained for seven years after the individual is no longer a client. The insurance council called this act concerning.
The activity was discovered after another client entirely expressed a desire to cancel her policy but still continued to be charged premiums. “Following a review of the complaint, the insurer cancelled TM’s policy and refunded her $3,600 in premiums.”
In his defense, Sandhu stated that he believed having out-of-province clients sign documents while he was licensed in British Columbia was acceptable given the COVID-19 pandemic provisions which were in place at the time. “The licensee acknowledged that it was wrong to suggest that the Zoom meetings with clients were equivalent to in-person meetings,” the decision continues.
It adds that the council believes that Sandhu’s failure to follow client instructions was careless, rather than an act of ill-intent.
“Council considers a two-year supervision period for the licensee to be appropriate,” the intended decision concludes. “Council believes that a council-approved supervisor would provide consistent oversight to ensure that the licensee’s practices are aligned with current standards.”
