A consensual agreement and undertaking signed between the market practices committee of the Life Insurance Council of Saskatchewan and NextPhase Financial Inc., reveals that the firm failed to notify the council when it failed to maintain the prescribed security requirements set out in that province’s insurance regulations.
After admitting the misconduct, the firms’ designated representative Nick Ylioja entered into the agreement admitting the breach, agreeing to pay a penalty in the amount of $300. The firm also agreed to pay the costs of the investigation totaling $440.
Section 3-1 of the insurance council’s bylaws state that firms are obligated to immediately notify the council if regulations referring to prescribed errors and omissions (E&O) insurance requirements are not met. Specifically, the regulations require that businesses applying for or holding and insurance agent’s license for life accident and sickness shall maintain and annually provide proof they maintain at least $1-million in coverage for any one occurrence and a minimum aggregate limit of $2,000,000 with respect to all occurrences within a year. The insurance must cover the insurance activities of the licensee and be underwritten by an insurance company licensed to do business in Canada.
