The Insurance Council of British Columbia (ICBC) is continuing to publish decisions related to a production order it issued in May 2021, requesting the records from all agencies where a licensee or agency placed more than 40 one-year policies on newer vehicles that were subsequently cancelled and transferred within 30 days.
The sweep thus far has netted a number of agents who were not aware they were facilitating the export of cars in the grey market. They facilitated the placement of more than $1.1-million worth of business, most of which were for policies with premiums greater than the average auto premium paid in the province during the same year. Just four companies were identified as being responsible for the majority of the transactions. In most cases, premiums were paid for using a credit card and refunds were requested by cheque, elements that were flagged for their possible connection to money laundering and tax evasion.
Average premium per policy was $12,148
“The 27 ICBC Autoplan policies issued and cancelled by the agency had combined total premiums of $328,002. The average premium per policy was $12,148, which was seven times higher than the 2019 average auto premium in British Columbia ($1,832), according to the Insurance Bureau of Canada,” the intended decision states in the case of Hong (Forrest) Lin, a supervisor in the agency who is the most recently sanctioned agent in the case. “ICBC’s data showed that an additional 59 policies were purchased through either company EA, IH, company WL or JW. The combined total premiums of the 86 policies issued by the agency amounted to $1,143,437. Eighty-five policies had premiums greater than BC’s 2019 average auto premium.”
In the most recent case, Lin is being sanctioned for his role in overseeing the level 1 agents who processed 27 of the transactions. First licensed in November 2008, Lin says he was aware of ICBC broker bulletins reminding agents that clients should only be sold temporary operation permits, or TOPs if the customer intends to cancel a policy within days of issuance. But, he says he forgot when he told staff that it was ok to proceed with the transactions. The agency agreed to provide a payment to the ICBC in April 2020 to conclude the matter. Lin and his brother reportedly bought the agency from previous owners in 2022.
According to the intended decision in the case, Lin’s license is now being suspended for one year, he must pay a fine in the amount of $10,000, complete remedial coursework and pay costs in the amount of $1,875 before the council will consider issuing a license to the agent again in the future.
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