The Insurance Council of British Columbia (ICoBC) has fined Sahar Rezaei $500, half of the usual baseline amount normally assessed, and ordered her to pay costs in the amount of $950, after an audit uncovered the fact that the agent’s errors and omissions (E&O) insurance coverage had terminated when she left the agency she had been working for.
Although the agent mistakenly believed her coverage would continue after her resignation, the insurance council also sanctioned Rezaei for failing to notify council within five business days that she was no longer insured, as required.
First licensed in March 2023, the ICoBC conducted an audit after receiving notification that Rezaei’s insurance lapsed in May 2024. “The licensee was asked to provide copies of E&O insurance declaration page and policies to demonstrate that she was covered under a valid E&O insurance policy after May 14, 2024,” the intended decision in the case states.
A month later Rezaei provided a policy showing coverage from November 13, 2024, to June 1, 2025. She also provided two policies, one covering her up until August 2024, but her agency confirmed that the policy had been terminated in May that year. It provided a copy of its letter to Rezaei, confirming her resignation and noting that her liability insurance would expire within 30 days.
Rezaei says the email went to her junk folder, and she believed her insurance was valid until August 2024, based on the certificate date. The agent took a leave of absence before joining an insurer on June 6, 2024, but did not resume full-time work until November 2024, at which point she had appropriate insurance in place.
The insurer provided a letter from Razaei’s supervisor confirming that the agent had not conducted any business while uninsured. Her legal counsel advised and reiterated to the council that she was newly licensed at the time and the lapse was unintentional.
“Council accepted the licensee’s submission that she did not intend to have a lapse in insurance and that she wrongly believed she continued to maintain E&O insurance through her previous agency,” the intended decision concludes. “Council found it mitigating that during the lapse period, the licensee did not conduct any insurance business.”
