Regulator reminds insurers to take action regarding conduct and suitability
The Financial Services Regulatory Authority of Ontario (FSRA) is reminding life insurers to take appropriate action if an agent does meet FSRA’s conduct and suitability requirements.
In a statement, FSRA said it has learned that certain agents altered clients’ work and study visas while they were going through the life insurance application process. The changes were discovered during the insurer’s underwriting process and the agents were terminated.
FSRA will enforce the law
“FSRA does not tolerate any activities that are illegal or intended to harm consumers and the industry,” it said.
FSRA said it is reviewing the matter and will take action to enforce the applicable laws and regulations.
The type of enforcement FSRA pursues depends on the information and unique circumstances of each case. It may include revoking or suspending a licence or administrative financial penalties.
FSRA requires insurance companies to ensure that agents comply with the Insurance Act, regulations and agent licence requirements. Insurers must also complete due diligence when delegating functions to managing general agencies, such as agent screening and oversight.