The Market Practices Committee of the Life Insurance Council of Saskatchewan has entered into a consensual agreement and undertaking with Schroeder Consulting Ltd., after the firm agreed it was guilty of misconduct when it failed to maintain prescribed financial security requirements.
Specifically, the province’s Insurance Act requires that insurance intermediaries that hold an insurance agent’s license for life, accident and sickness insurance sales shall maintain and annual provide proof it holds a valid errors and omissions (E&O) insurance policy that provides a minimum of $1-million in coverage for any one occurrence, and a minimum aggregate limit of $1-million to cover all occurrences within a year. The act also requires agents to maintain policies that include $1-million in extended coverage for loss resulting from fraudulent or dishonest acts.
The policies must cover the insurance activities of the licensee in question and be underwritten by an insurance company licensed to do business in Canada. The act also requires that firms notify the council immediately if they fail to maintain the prescribed coverages or bond.
The insurance council fined Schroeder Consulting $1,000 and assessed costs totalling $550.
