In two recent decisions, the Alberta Insurance Council (AIC) has fined two former agents $750 each for failing or refusing to provide information and documentation in response to a formal demand for information.
According to the decisions, agent Cameron McInnis and agent Sheena Mcdonell, both former holders of both life and accident and sickness certificates of authority, were asked to verify that the continuing education (CE) credits claimed on their license renewals were correct.
In both cases the AIC says it emailed the agents three times, requesting the information. It also spoke with McInnis on the phone following those requests. At the time, the agent stated that he did not have proof of CE and that he would reach out to his education provider to obtain them.
Although the Council attempted to contact Mcdonell , it found her personal and business phone numbers were no longer in service.
The efforts to audit the agents’ CE credits were part of a larger effort undertaken by the Council to verify CE credits on licensee’s renewal applications. Those being audited were randomly selected from a pool of agents who renewed their certificates of authority in May and June 2019. In August 2019, both agents had their certificates suspended for failing to respond to the AIC’s demand.
“The offence of failing to respond to a demand for information is one of strict liability,” the AIC writes in its decisions. “This means that in order to be found guilty, the AIC only needs to prove that the demand was properly made and delivered. There is no requirement that the AIC prove that the agent’s failure to respond was intentional.”
“Council has the discretion to assess a civil penalty in an amount up to $1,000,” they add. “In this case, the agent did not respond to the demand. As such, the council orders a civil penalty in the amount of $750.”
