The question of whether or not an agent violated the Insurance Act in Manitoba when she conducted business for nearly eight months without a license, was settled in a recent decision published by the Life Insurance Council of Manitoba. The regulator fined Areka Cassandria Hibbert $200 and assessed partial investigation costs of just $500.
In its decision, the council noted that Hibbert was evasive in her responses to the council’s investigators until she was provided with proof of her mistake.
The council in its decision states that it is an agent’s responsibility to regularly update their own information in the Insurance Council of Manitoba (ICM) licensing portal with updated and new professional liability insurance policy information, prior to the expiration of any existing errors and omissions (E&O) insurance, along with a correct email address. Although Hibbert updated her email on two occasions, she claims she did not receive notices from the council about the upcoming expiration of her E&O coverage. She also claims not to have received notices cancelling her license, sent by email and in a separate letter. The notice indicated that Hibbert was prohibited from carrying on the activities of an insurance agent. Eight months later her sponsoring agency indicated to the councils’ licensing department that Hibbert sold five polices while unlicensed, earning $66.36. She also provided insurance-related advice to 14 prospects.
Although Hibbert says she carried in-force E&O coverage during the period in question, and claims she did not receive any of the notifications, she later admitted the email address on file was hers.
“Council did not accept the licensee’s position that she was not aware she had lost her license,” the council’s decision states. “Council concluded that the licensee should be aware or ought to have been aware that she was not licensed.”
