The Alberta Insurance Council has levied a $1,000 penalty – the most it can impose in the case – against agent Paul Hooke, after it was found that he failed to renew his errors and omissions (E&O) insurance coverage prior to the policy expiring.
In response to the council’s E&O audit where auditees were selected at random and asked to provide proof of current coverage, Hooke provided the council with a copy of his certificate of insurance for a corporate E&O policy. When the council returned to Hooke saying he had a life sole proprietor license and needed to provide evidence of coverage for that license, he was unable to do so. In communications with the council, Hooke said he was under the impression that his license was part of the corporate license.
Hooke was backed up by his senior manager who called the transgression an oversight on the part of the company and asked the regulator to reconsider its position that a $1,000 penalty was appropriate – a request that was ultimately rejected.
