The Financial Services Regulatory Authority of Ontario (FSRA) has refused to renew the life insurance and accident and sickness benefits insurance agent’s licence issued to Erykah Nelson after the former agent was found to have submitted an insurance application based on false information. She is also being sanctioned for failing to disclose her termination and a regulatory complaint against her when she attempted to renew her licence.
First licensed in July 2021, Nelson’s licence expired in July 2025. In May 2025 when she attempted to renew her licence, she falsely responded ‘no’ to suitability questions about whether she had ever had a complaint made against her for fraud or other similar conduct. “When asked if she had ever had an employment or business relationship terminated for fraud, the applicant failed to disclose,” the notice of proposal in the case states.
The termination in question came after Nelson submitted an insurance application for an individual, reportedly without their knowledge or authorization. The individual contacted the insurer once they became aware of the policy. The application included false information about the individuals’ contact details, employment and marital status. “The remaining information that was accurate was only available from identification that had been in the individual’s wallet that was previously stolen,” the notice of proposal continues. “The individual reported the stolen identification and, subsequently, the false insurance policy to the police.”
In August 2024, the insurer terminated Nelson and informed her that her actions would be reported to FSRA. “The director is satisfied that the applicant is not suitable or of good character to be licensed under the (Insurance) Act,” the notice adds. “Her conduct raises the risk of harm to consumers that cannot be mitigated with conditions on a license. A sanction short of refusal would not reflect the seriousness of her conduct or adequately protect the public.”
In addition to refusing Nelson a licence, the regulator also imposed two administrative penalties of $5,000 each – one for submitting the fraudulent application and the other for failing to inform FSRA about the complaints against her.
