For doing the work of an insurance agent without being licensed for a period of nine months, Gurpreet Singh Ghuman is now faced with an $80,000 administrative penalty for continuing to act as a life insurance agent after letting his license lapse.

Although Ghuman initially requested a hearing before the Financial Services Tribunal, he withdrew his request and the Financial Services Regulatory Authority of Ontario (FSRA) issued the order in late October 2025.

In 2024 the regulator also settled with Industrial Alliance Insurance and Financial Services Inc. (iA Financial Group) and the World Financial Group Insurance Agency of Canada Inc. (WFG), imposing a $110,000 administrative penalty on Industrial Alliance and a $50,000 penalty on WFG.

Sanctioned for paying compensation to unlicensed person 

In Industrial Alliance’s case, the insurer was sanctioned for paying compensation to a person for placing or negotiating insurance on lives, when that person is not an agent or broker. It was also sanctioned for failing to establish and maintain a system reasonably designed to ensure that agents comply with the province’s Insurance Act, FSRA’s rules and the rules and conditions of the agent’s license. WFG, meanwhile, was sanctioned for paying or allowing compensation to an unlicensed person for placing or negotiating insurance.

First contracted with WFG in October 2013, Ghuman’s agent agreement was terminated for cause in June 2023. According to the notice of proposal in the case, Industrial Alliance terminated its relationship with Ghuman in July 2022.

For nine months in late 2021 and 2022, Ghuman solicited clients on behalf of insurers, applied for life insurance policies on behalf of clients and arranged for the placement of 59 policies while unlicensed. 58 of the policies were written by Industrial Alliance.” 

During FSRA’s investigation, Ghuman denied receiving the regulator’s reminder to renew his license. It was later found that WFG, in or around April 2021, “had incorrectly updated Ghuman’s license expiry date in its systems, leading to the incorrect record relating to Ghuman’s license status. WFG passed on the inaccurate information to Industrial Alliance,” the notice of proposal states.

Insurer did not have records on licensing status 

Industrial Alliance admitted that it relied on WFG to monitor licenses. It did not have any records relating to the agent’s licensing status for the period during which Ghuman sold policies as an agent of the company. The agent had been selling policies for Industrial Alliance since November 2013.

“Industrial Alliance paid at least $257,371.48 as first year commissions, to Ghuman on the unlicensed sales, through WFG. WFG received or was entitled to receive $556,601.69 as overrides,” the notice of proposal states. “WFG represented to FSRA that it paid Ghuman $455,398.11 as commissions on the unlicensed sales and that this amount was returned to Industrial Alliance. WFG is attempting to collect the amount repaid to Industrial Alliance, from Ghuman.” 

The notice adds: “Industrial Alliance’s wholesale reliance on WFG to ensure Ghuman was licensed under the Act was not reasonable in the circumstances.” As for Ghuman, the notice further states that the agent was solely responsible for filing license renewal applications in a timely manner.

“Insurers and insurance agents voluntarily choose to engage in a business that requires a license, and which involves regulation under the Act. They agree in advance and are expected to adhere to strict standards of conduct, and they accept that FSRA may hold them accountable for any departures from these standards,” the notice states.