The Life Insurance Council of Saskatchewan has fined Kim Safronetz Financial Services Ltd. $1,250 after the agency’s errors and omissions (E&O) coverage lapsed for 16 days in 2020 and its designated representative made a material misstatement about the lapse in an annual reporting form.
The agency entered into a consensual agreement and undertaking with the council wherein it acknowledged and agreed it was guilty of misconduct when it failed to maintain the prescribed financial security required by the province’s Insurance Act.
“Every business that applies for or holds an insurance agent’s license for life, accident and sickness, or life and accident and sickness insurance shall maintain and provide annually proof of a valid policy of errors and omissions insurance,” the council states, citing subsections of the Insurance Act.
They add that a license imposes obligations on a business’s designated representative to immediately notify council if there is a failure to maintain the prescribed financial security requirements (E&O insurance).
Following that, the undertaking states that the agency’s designated representative, Kim Safronetz, made a material misstatement when she declared on the agency’s annual reporting form that the agency maintained a valid E&O policy when in fact there was a 16-day gap in June 2020.
In addition to the fine, the agency must also pay investigation costs in the amount of $550.
