The Insurance Council of British Columbia is reprimanding Richard Ben Triemstra, noting in its intended decision that licensees should be cautious about offering service outside of their realm of expertise.
“If a licensee does not feel they are able to meet the knowledge and skill required for an insurance transaction, they should be cautious of performing insurance services beyond their level of competence,” the intended decision regarding Triemstra notes.
Licensed since December 1987, Triemstra began work to secure commercial general liability coverage and an errors and omissions (E&O) policy for a client in February and March 2022. Triemstra’s position was that the client’s initial inquiry was for liability coverage that was required by the client’s new landlord for their rented space. “The licensee focused on the commercial general liability coverage,” the intended decision states.
When the client was subsequently involved in two wrongful termination civil claims, it was claimed that the client did not have knowledge about the insurance coverage required for company directors and that Triemstra did not provide adequate advice regarding the necessary coverages for legal defense costs.
It was determined that the managing general agency (MGA) emailed Triemstra a quote for the E&O policy along with a quotation page from the MGA that listed additional coverages available, including directors and officer’s coverage and employment practices liability coverage – a page which wasn’t included in the quote sent to the client. “The licensee advised that he was out of the office when this correspondence was sent,” the intended decision adds.
The regulator’s analysis states that Triemstra had an obligation to disclose all material information to the client, including the existence of the omitted, additional coverages, for the client to make a fully informed decision. “Council determined that the licensee in this transaction did not meet the level of skill consistent with the usual practice of the business of insurance.”
In addition to the reprimand, Triemstra must also complete coursework on completing commercial lines applications and coursework regarding directors’ and officers’ coverage for private companies. He was also assessed the insurance council’s costs in the amount of $1,437.50.
