The Alberta Insurance Council published its decisions in the matter of Alexander Donaldson after alleging that the former representative acted as an insurance agent while unlicensed.
Donaldson was the holder of a general, level 1 certificate of authority from February 2019 until June 30, 2020 when his certificate expired. The agent continued to carry on business while unlicensed between July 2020 and May 2021 when he was terminated for cause.
The insurance council’s investigation into Donaldson’s conduct occurred following his termination when his former agency sent a letter to the regulator discussing how Donaldson was ordered to immediate cease all customer transactions while a review of his license and an audit of his work was completed. Despite this warning, Donaldson activated a new insurance policy with a customer while unlicensed.
The former agency’s documentation showed the agent bound 15 policies while unlicensed between July 2020 and April 2021. The insurance council’s decision also states that the former agent did not respond to its formal demands for information.
“The agent simply assumed that his license was renewed when the former agency advised him that his renewal fee had been paid,” the decision states. “It is the responsibility of an agent to ensure that a valid certificate of authority exists prior to conducting insurance business.”
Following its deliberations, the council ordered Donaldson to pay $300 per policy sold during his unlicensed period, for a total civil penalty of $4,500.
