Agent sanctioned over cancelled Autoplan policies issued for exported cars

The Insurance Council of British Columbia has sanctioned Eldy Siu Man Lam after it was discovered that Lam processed 108 one-year Autoplan insurance policies between February 2019 and January 2023 for vehicles that were exported from Canada before the policies were cancelled days later.

Four of the policies were cancelled by Lam within three days or less. The remaining 104 one-year policies were cancelled within eight days at different agencies.

“When a vehicle is licensed, it must be for the purpose of operation on a British Columbia highway. If a licensee is aware that the only reason a policy is being sold is to facilitate the export of the vehicle, and the intention of the customer is to cancel the policy within days of issuance, the customer should only be sold a Temporary Operation Permit (TOP),” the insurance council’s intended decision states.

Lam is also accused of processing the business without ever meeting buyers or lessees personally. In at least one case, she could not explain why the business was signed by someone who had lived in China continuously since 2019.

In addition, between May 2017 and May 2022 Lam also processed 11 transactions on her own Insurance Corporation of British Columbia (ICBC) Autoplan insurance policies and six transactions for her spouse between November 2018 and November 2021. The ICBC has already suspended Lam from conducting Autoplan business for two years.

Cannot rely on willful blindness 

“Council concluded that the licensee repeatedly processed and collected commissions for one-year Autoplan insurance policies where the licensee ought to have known the transactions were suspicious and were not intended for the purpose of operation on a BC highway. Although the licensee only processed the cancellation of four of the 108 one-year Autoplan insurance policies placed by the licensee, the licensee cannot rely on willful blindness in determining that the issuance of the Autoplan policies was suspicious,” the intended decision states.

“The licensee issued one-year Autoplan policies to 14 common lessees listed as the primary insured of 100 policies in question. One of the lessees was listed as the primary insured for 23 different vehicles and two of the lessees were each listed as the primary insured for 15 different vehicles. The licensee should have been aware or questioned why one lessee would be insured for such a magnitude of motor vehicles and ought to have known that the intention of the customer was not to carry multiple one-year Autoplan policies.” 

In addition to a one year-suspension of her license (Lam was first licensed as a level 1 general insurance agent in 2002 and as a level 2 general insurance agent in 2006), upon reregistration, her license will also be downgraded to a level 1 license until December 2026. Prior to reregistration, Lam must also complete two remedial courses, including an ethics class by March 2025 and pay sanctions including a fine of $10,000 and investigation costs in the amount of $1.562.50.