The market practices committee of the Life Insurance Council of Saskatchewan has entered into a consensual agreement and undertaking with Melchor Castro Asuncion, fining Asuncion $1,000 and imposing investigation costs after he admitted that he breached council bylaws and Insurance Act regulations.
The insurance council, in its agreement with Asuncion, states that every business and individual which applies for or holds an insurance intermediary’s license must meet and maintain financial security requirements prescribed under the province’s Insurance Act. Specifically, they add that life, accident and sickness agents must maintain and annually provide proof they hold a valid policy of errors and omissions (E&O) insurance from a Canadian licensed insurer, which provides a minimum of $1-million in coverage and $1-million in extended coverage for loss resulting from fraudulent or dishonest acts.
In addition to being sanctioned for failing to maintain E&O coverage, Asuncion is being sanctioned for failing to notify the insurance council upon discovering the failure to maintain the prescribed financial security requirements.
In addition to the $1,000 fine, the council also assessed investigation costs totalling $550.
