The Insurance Council of British Columbia (ICoBC) has fined Ephraim Joshua Azucena Dela Cruz and ordered the level 1 general agent to complete remedial coursework after failing to transfer a vehicle insurance policy, leaving a car dealership customer uninsured.
In the case, the complaining client stated that he attended a motor vehicle dealership in December 2023 to exchange his lease and alleged that the agent failed to transfer his insurance – an allegation the agent later admitted to.
“The complainant stated he was provided with stamped insurance documents and a new license plate,” the intended decision in the case states. September the following year the client was involved in a motor vehicle accident and his claim for damages was denied by the Insurance Corporation of British Columbia (ICBC) for not having valid insurance on the vehicle. “The licensee acknowledged that he inadvertently failed to complete the insurance transfer.”
Although the agency sent four automated follow-up texts to the client in the lead up to his insurance expiration date in June 2024, and although an automated notice was also mailed to the client as well, the insurance council notes that independent of whether the complainant knew or ought to have known that his insurance had expired, “there was still a failure on the licensee’s part to place the insurance coverage.”
During the investigation, the agency’s owner provided a written statement that the agency’s ICBC representative told the agency that the complainant knew his insurance would expire as he visited an insurance agent in June 2024. A later production order for the representative’s notes found no documentation to support the owner’s assertion that the complainant knew his insurance was expiring.
As a result of the accident, the client was responsible for tow yard storage totalling $2,854.74 and vehicle repairs totalling $31,920. “Ultimately ICBC denied the complainant’s vehicle damage claim because the policy expired in June 2024, it had not been renewed, and the complainant was uninsured at the time of the loss,” they add.
Although the council was sympathetic and noted Dela Cruz’ cooperation, aggravating factors in the case included his experience (the general agent was first licensed in 2009) and a previous disciplinary history (he allowed a client to sign for her husband before receiving power of attorney documentation). The council ultimately fined the agent $1,500, ordered costs in the amount of $3,125 and ordered Dela Cruz to complete the Council Rules Course for General Insurance Agents, Salespersons and Adjusters.
