Regulator refuses license to agent who maintained policies for 70 fictitious clients

The Financial Services Regulatory Authority of Ontario (FSRA) announced January 25 that it has refused to renew the life, accident and sickness insurance agent’s license issued to Stewart Edward Ranft. It also imposed administrative penalties of $28,000 after Ranft attempted to renew his expired license and it was found that he’d been terminated by the companies he was contracted with for fraud.

According to FSRA’s statement, Ranft contravened the Insurance Act by making false and misleading statements and representations to an insurer in the solicitation or registration of insurance.

Formerly associated with Financial Horizons Group from December 2012 until the managing general agency (MGA) terminated his contract for cause in May 2021, Ranft was also an insurance agent for Assumption Mutual Life Insurance Company. That company also terminated his contract for cause in July 2021.

“Between August 2019 and February 2021 Ranft prepared and submitted 49 life insurance policy applications to Assumption Life using fictitious information to arrange for the issuance of 49 life insurance policies by Assumption Life. Ranft collected commissions and other incentive payments on the issuance of such policies,” the regulator’s notice of proposal to impose penalties states. “Ranft completed 49 life insurance policy applications for non-existent persons.” 

The agent avoided escalated approval processes by keeping the applicants’ ages between 35 and 55 with a good health record. His own banking information was used in all cases, and commissions were deposited to the same account to pay premiums. All told, he earned $287,208.58 and paid approximately $140,248.48 in premiums. After the discovery of the misconduct, Ranft repaid $130,612.53. 

“Furthermore, Ranft admitted to creating 21 Assumption Life life insurance policies in 2018 using a similar scheme as described above. The policies were cancelled by him in 2018 and he was required to pay chargebacks of commissions and other incentives to Assumption Life on account of the cancellations,” the notice states.

On his renewal application also, Ranft falsely declared that no complaint had ever been made against him to a regulatory body and falsely declared that he’d never been terminated for fraud.

Although the regulatory initially intended to levy $56,000 in penalties, the amount was halved after Ranft and FSRA’s director entered into a settlement consenting to the license refusal and an undertaking to pay the penalties ordered.