The Insurance Councils of Saskatchewan (ICS) have published a number of undertakings between the Life Insurance Council of Saskatchewan (LICS) and those being sanctioned for not maintaining adequate errors and omissions (E&O) coverage for their respective businesses.
The first agency being sanctioned, Kramer Trailer Sales, was fined $1,000 and assessed investigation costs in the amount of $330. “Every business and individual that applies for or holds an insurance intermediary’s license shall meet and maintain the prescribed financial security requirements,” the consensual agreement and undertaking between the agency and the life council states.
“Every business that applies for or holds an insurance agent’s or managing general agent’s license for crop hail insurance shall maintain and provide annually proof of a valid policy of errors and omissions insurance that provides a minimum of $250,000 coverage with respect to any one occurrence and a minimum aggregate limit of $500,000 with respect to all occurrences within a year,” the agreement continues.
The council uses identical language in separate undertakings it entered into with Charles (Chuck) Jones and Diana Koenning. In Jones’ and Koenning’s cases the agents were also sanctioned for making material misstatements on their licensing applications.
In Jones’ cases, the agent was fined $492 and assessed investigation costs totalling $440. Koenning, meanwhile, was fined $454 and assessed investigation costs in the amount of $440. “Every business and individual that applies for or holds an insurance intermediary’s license shall meet and maintain the prescribed financial requirements,” the council states.
