Failure to maintain a valid policy of errors and omissions (E&O) insurance will cost Saskatchewan agent, Vaughn Raymond Fiala $1,000, plus costs in the amount of $440 after Fiala entered into a consensual agreement and undertaking with the market practices committee of the General Insurance Council of Saskatchewan.
Specifically, Fiala admitted and agreed that he was guilty of misconduct and violated the council’s bylaws which state that every business that applies for or holds an insurance agent’s or managing general agent’s license for crop hail insurance shall maintain E&O coverage and provide proof of that coverage annually.
In the province such licenses require E&O coverage which provides a minimum of $250,000 in coverage for any one occurrence and a minimum aggregate limit of $500,000 with respect to all occurrences within a year. The policy must cover the activities of the licensee and be underwritten by an insurance company licensed to do business in Canada.
