The Financial Services Regulatory Authority of Ontario (FSRA) has issued an order imposing a $17,000 administrative penalty on former agent, Jenson Ocampo, after it was discovered that Ocampo paid premium rebates to 27 clients who purchased life insurance policies between December 2020 and September 2021.
Ocampo was contracted and authorized to sell insurance policies for the Grand Orange Lodge of British America, also known as the Orange Benefit Fund (OBF). OBF terminated Ocampo’s contract and filed a life agent reporting form (LARF) with the regulator the next day in December 2022, after it received a complaint from a customer alleging that the agent had stopped paying her “dividends” which were meant to offset the cost of insurance she purchased from OBF.
During the investigation into his conduct, it was discovered that Ocampo informed clients that he would provide them with funds for the policy premiums for a period of two years. He did this by issuing share certificates of Eternity Memorial Services, a company that he was a director of since the company’s inception in 2016, and paid dividends to the shareholders in amounts equal to their monthly premiums. “It is not clear what business Eternity conducts,” the notice of proposal in the case states. “In this list, everyone had the same number of shares, 500. However, shareholders were paid a different monthly dividend corresponding to the monthly premium in the OBF list.”
All told, Ocampo promised to pay $138,336 – he was unable to provide complete information about the amounts he actually paid – earning $91,048.41 in commissions for the 27 policies. “OBF has sought to recover $40,091.79 in chargebacks from Ocampo,” the notice continues. “Ocampo agreed to rebate premiums for a period of two years but failed to do so for some of the insureds.”
Licensed as a life insurance and accident and sickness insurance agent under the Insurance Act in Ontario from November 2000 until March 2024 when his license expired, Ocampo is currently unlicensed in the province.
