The Insurance Council of British Columbia has reprimanded Westland Insurance Group Ltd., and ordered the agency to pay costs, but refrained from fining the firm after it failed to take appropriate action after becoming aware of a possible compromise of client information.
According to the intended decision, a former level 1 general insurance salesperson was authorized to represent the agency between January and June 2017. Following that time, the agent was charged under the Criminal Code with charges that included ten counts of identity theft, ten counts of unauthorized use of credit card data and eight counts of fraud over $5,000. Council canceled the former agent’s license in May 2020.
The Royal Bank of Canada (RBC) contacted the agency in June 2017 regarding an investigation into suspicious transactions linked to the agency and the Royal Canadian Mounted Police (RCMP) also contacted the agency in August 2017. “The agency cooperated with both the RCMP and RBC. However, there is no record of the agency otherwise taking action to address the potential breach of important client personal information. The agency did not contact (council) about the suspicious transactions.”
Nominees in the agency stated that they had been unaware of the investigations until being notified by council during its investigation. They also stated that they would have reached out to the regulator had the matter been brought to their attention. The council concluded that both were competent and should not be personally sanctioned for the agency’s inaction.
“Council has concluded that the agency did not take appropriate action to protect client information after being made aware of RBC and RCMP investigations into the suspicious transactions linked to the former licensee. At the very least, the agency should have brought the matter to (council’s) attention, as required by their agreement with (council) so that a mutual course of action could be discussed.”
That said, the council refrained from ordering a monetary penalty, instead ordering the agency to pay costs of just $2,375.
“The agency put client information at risk by failing to take appropriate action when made aware that suspicious transactions had been identified by RBC and the RCMP. Council believes that this disposition will communicate to the industry and public the importance of protecting the privacy of client information.”
