The Insurance Council of British Columbia has cancelled both the general insurance agent’s license and the life and accident and sickness insurance agent’s license for Kurt Aron Morley, after Morley admitted to profiting from a scheme where inflated premiums were charged to commercial clients without their knowledge, or the insurance company’s knowledge.

Discovered when the agency he worked with changed hands to a new owner, the new owner of the agency reported that it identified 29 policies involving 15 clients where Morley had altered documentation to show premiums were higher than those permitted to be charged by the insurers. The agency ultimately reimbursed the 15 clients, approximately $70,000.

In a written response to the insurance council, Morley readily admitted that he altered the policy documents, provided details regarding the scheme and agreed to cooperate fully.

In February 2022, he says he began to face financial pressure when his salary at the agency was reduced and he became more reliant on commissions. In June 2022 a major insurer left the agency, requiring the agency to find a new insurer to take on policies for the departing insurers’ clients.

“When the licensee found a new insurer offering a lower premium for a client, he was instructed by JK (the prior agency owner) to change the premium amount shown on the policy documents so that the client would continue to pay the higher premium that it had previously been paying,” the intended decision in the case states. “According to the licensee, he felt threatened by JK to change the policy premiums and believed that his employment would be terminated if he refused.” 

According to the intended decision, Morley received 35 per cent of the proceeds while the agency kept the remaining 65 per cent. The premium increases ranged between $200 and $10,000. Morley confirmed that a total of $70,000 was misappropriated from clients through the scheme between June 2022 and July 2024.

First licensed as a general salesperson in June 2014 and as a life and accident and sickness insurance agent in November 2019, the insurance council cancelled both licenses saying it will not consider any new application for a license until May 2029. Morley was also fined $10,000, assessed costs in the amount of $1,500 and was ordered to complete an Insurance Institute of Canada ethics course prior to making any application for a license in the future.