The Financial Services Regulatory Authority of Ontario (FSRA) has levied administrative penalties totalling $16,000 and imposed several conditions on Oded Oliver Beer for paying premiums on behalf of clients, to manipulate the commissions he received for the sale of those policies.
FSRA says Beer’s compensation was tied to the duration over which policyholders held their policies with the insurer. Between January 2018 and February 2019, he entered into agreements with 11 of his clients at Industrial Alliance, agreeing that he would pay the policyholders’ premiums for up to 14 months if the policyholders agreed to retain their policies for at least the same duration.
All told, Beer paid at least $40,455 in premiums, receiving more than $102,000 in commissions.
Beer has previously been the subject of regulatory action related to premium rebating on two other separate occasions in the past.
“Beer has admitted to making intentional payments of client premiums for his own gains and to the manipulation of commissions in the insurance agency business,” FSRA states in its original notice of proposal to revoke the agent’s license. “Beer took steps to mask that he was the payor behind these premiums through a Bank of Montreal account that belonged to a numbered corporation.”
Although FSRA originally sought penalties in the amount of $11,000, plus the revocation of Beer’s license, the regulator ultimately levied the higher amount, while also ordering Beer to complete an approved Life License Qualification Program (LLQP) ethics course. Beer is also not allowed to conduct business without the direct supervision of a designated supervisor. Beer must also report his insurance activities to the president of his managing general agency (MGA), Toronto Mutual Group Inc., and ensure the MGA files quarterly reports that detail Beer’s insurance agent activities.
“If either the supervisor or Toronto Mutual cannot continue to supervise Oded Oliver Beer,” FSRA adds in its order, “Beer shall cease all insurance agent business activity immediately until a new supervisor has been approved.”
