In Saskatchewan, Jarett Gedir has entered into a consensual agreement and undertaking with the Life Insurance Council of Saskatchewan (LICS) over a seven-day lapse of his errors and omissions (E&O) coverage.

During the investigation Gedir reportedly told the regulator that the one-week lapse “is not a concern for me.” 

In addition to being sanctioned for the lapsed E&O policy, the relatively new agent (first licensed in June 2024) was additionally sanctioned for making a material misstatement on his renewal application when he indicated that he had the requisite coverage.

“While the licensee notes that the lapse is not a concern for him, it does pose a concern for ICS (Insurance Councils of Saskatchewan), and he should have been aware of the lapse in coverage when he completed the annual return,” the agreement states. “Having reviewed the licensee’s suitability in light of the misstatement and given the licensee’s response to the lapse, ICS finds that the conduct warrants regulatory action. Although the concerns do not rise to a level requiring license revocation or suspension, a penalty is considered appropriate.”

The decision also explains the mechanics of an E&O policy, namely that to maintain coverage for previous activities, the policy must stay in force. “The failure to maintain continuous E&O coverage presents a significant risk and raises serious public protection concerns,” they add.

In Saskatchewan, brokers and businesses holding an insurance agent’s license for life, accident and sickness insurance must maintain and annually provide proof of coverage, including a minimum of $1-million in coverage for any one occurrence and a minimum aggregate limit of $1-million of all occurrences within a year. Agents must also carry $1,000 extended coverage for loss resulting from fraudulent or dishonest acts. The policy must cover the licensee’s activities and be underwritten by an insurance company licensed to do business in Canada.

In Gadir’s case, the agent was fined $1,500 and assessed investigation costs in the amount of $330.