Insurance agent sanctioned for falsifying coverage on uninsured building

The Registered Insurance Brokers of Ontario (RIBO) has published its decision and reasons for sanctioning Cairine Bruce after the level 3 broker, first licensed in 1976, falsified insurance documents to satisfy a mortgage lender’s inquiry about a building which had been uninsured for more than two years.

The complaint against Bruce was initiated by an insurer’s manager of corporate underwriting who alleged that the broker altered policy documentation and did not place insurance on a property located in Calabogie, Ontario. “RIBO investigated the matter internally before appointing an external investigator in or around March 2024,” the reasons state.

The property, belonging to a long-time client, had its insurance cancelled in August 2017 due to a lapse in payment. In December 2019, more than two years later, the property’s lender (the mortgagee) contacted Bruce to inquire about the insurance status of the property.

The broker admitted to the external investigator that in response to the request from the mortgagee, she altered the expired policy documents and sent the altered coverage to the mortgagee “representing coverage on the property when in fact she knew it was uninsured,” they write.

Specifically, Bruce changed the name of the mortgage lender, the policy period and the policy number. “The broker also sent a letter to the mortgagee on December 18, 2019, outlining the particulars of the property. The letter indicated that the property was insured.” She also forwarded the altered policy documents again in January 2020.

“The broker fully cooperated with RIBO’s investigation and acknowledged her wrongdoing early in the investigation process,” they add.

For entering a joint submission on penalty with the regulator, Bruce was fined just $1,000. The decision and reasons note that legal precedent sets a high bar for the rejection of such an agreement.

“The panel was left wondering why the licensee engaged in this misconduct after a long and unblemished career but ultimately the reasons are irrelevant given her admissions,” they state. “The main aggravating factor in this case was that the misconduct involved intentional dishonesty.”

In addition to a reprimand and the $1,000 fine, Bruce was also suspended for four months and must complete three hours of RIBO accredited education focused on the topic of ethics and ethical practice. “This requirement is in addition to the annual continuing education obligations of the broker,” they write.