A new life agent selling more than 143 policies, is being sanctioned for not running the majority of them past his supervisor, as is required of new agents in British Columbia.
After conducting an investigation related to a client complaint and allegations that Khaled Khalil recommended and sold insurance policies to a client that were inappropriate given the client’s circumstances, the Insurance Council of British Columbia (ICoBC) is sanctioning the agent who was new in the business at the time the policies were sold.
First licensed as a life and accident & sickness insurance agent in July 2023, Khalil was required to answer to the council’s investigators after a June 2024 complaint raised concerns about inappropriate insurance sales practices.
The complaint to council was filed on behalf of an 18-year-old client who lived with his parents, had no children, no property, no assets and no savings. Despite this, the client was sold over $680,000 of insurance coverage that included a whole life insurance policy and a universal life insurance policy. Khalil sold the universal life policy in September 2023.
Young client said he felt misled
In his complaint to the insurer, the client, identified only as SH in the council’s intended decision, stated that he felt he was misled into purchasing the policies, not fully understanding what they were and that he had no need for them at that time in his life when he had no liabilities. Khalil, on the other hand, says the client himself was studying for the Life License Qualification Program (LLQP), displayed a thorough understanding of universal life policies and had stated that his preference was for a universal life policy due to its cost-effective insurance coverage, given his age.
“The licensee admitted that he did not submit SH’s policy for approval with his supervisor and stated that he did not use the appropriate process with SH as they were good friends,” the intended decision states. “Additionally, the licensee admitted that he did not have SH sign the advisor disclosure or Reasons Why letter. He stated that this was due to his friendship with SH and a resulting lack of appropriate urgency to have SH sign these forms.”
During the investigation, it then came out that Khalil had processed the majority of his business in the preceding year without his supervisor’s oversight – just nine of 143 policies at the time included a supervisor’s sign-off. At the review committee meeting about his conduct, Khalil told the council that he did not fully understand his supervision requirements at the time.
In its intended decision, the council notes that it should be clear to third parties why a specific product is being recommended and the potential benefit for the client. Additionally, they say documenting transaction instructions ensures that should any issues arise in the future, there are clear records demonstrating what was discussed.
In addition to a $1,500 fine and costs in the amount of $1,763.50, council also ordered Khalil to be supervised for another two years of active licensing. Additionally, the council ordered remedial coursework, including the Council Rules Course for Life and/or Accident & Sickness Agents, two compliance courses on fact-finding and product suitability and The Challenge of Documenting Nothing course, available through Advocis.
