The general insurance council of Saskatchewan’s market practices committees has entered into a consensual agreement and undertaking with Jeremy Krainyk after Krainyk agreed he was guilty of misconduct when he failed to maintain the financial security requirements prescribed in the province’s Insurance Act.
Specifically, the Act states that every business and individual that applies for or holds and insurance intermediary’s licenses shall meet and maintain the prescribed financial security requirements. Regulations further state that every business applying for or holding an insurance agent’s or managing general agent’s license for crop hail insurance shall maintain and provide annually, proof of a valid policy of errors and omissions insurance providing a minimum of $250,000 in coverage for any one occurrence and a minimum aggregate limit of $500,000 for all occurrences within one year.
The insurance must cover the activities of the licensee and be underwritten by an insurance company licensed to do business in Canada.
The consensual agreement and undertaking between the Insurance Councils of Saskatchewan and Krainyk also consider that the agent might be guilty of misconduct for failing to reasonably respond to inquiries from the general insurance council or the Insurance Council of Saskatchewan.
Sanctions imposed by the committee include a fine in the amount of $372 and investigation costs totalling $440.