After failing to respond to a formal demand for information, insurance agent Justin Ground has been sanctioned with a $500 penalty by the Alberta Insurance Council.
The council’s decision states that Ground was part of the insurance council’s errors and omissions (E&O) insurance audit conducted in February 2022 which sought to verify that E&O coverage was in place following the expiration dates noted in Ground’s license renewal application.
“Auditees were selected at random and asked to provide proof of current E&O coverage,” the council writes in its decision. Licensed since June 2017, Ground’s certificates of authority were suspended in March 2022 for failing to provide proof of E&O coverage.
Prior to that, the Alberta Insurance Council emailed the demand to the agent, sent three reminder emails, left a voicemail and sent a fourth reminder email. They then followed up with registered mail, and one more voice message. Only once the council’s report was sent to the agent did he respond saying he had moved twice in the past year, was not very active in the industry and not planning on renewing his license. The agent then provided proof that the insurance coverage was in place and had been the whole time.
“The agent did respond, but it was outside of the period set out in the demand,” concluded the council.
