Regulator revokes license when agent fails to respond to investigation

The Financial Services Regulatory Authority of Ontario (FSRA) announced Feb. 7 that it has revoked the insurance agent’s license of Nakhwattie (Debbie) Somai after Somai failed to provide requested information to the regulator and breached a licensing condition by not facilitating a FSRA examination of the allegations against her.

Previously licensed as a mortgage agent until March 2020, and licensed as a life insurance and accident & sickness insurance agent since June 2014, Somai’s license, before it was revoked, was set to expire on May 2, 2025.

Insurer terminated contract 

The insurer Somai was contracted with terminated that contract in March 2023 and the insurer submitted a life agent reporting form (LARF) to FSRA alleging, among other things, fraud, misrepresentation, untrustworthiness and concerns about Somai selling insurance policies to family members without the family member’s knowledge or consent.

In August 2023 FSRA required Somai to complete a market conduct questionnaire, and advised the agent that she would need to provide it and supporting documentation including errors and omissions (E&O) coverage evidence, continuing education (CE) certificates and annual sales. The notice of examination also advised Somai that FSRA would request a selection of client files.

Although the regulator required the requested information by Sept. 5, 2023, it was later that month before she submitted the questionnaire. She did not provide the requested documents and did not provide the 10 specific client files requested. “To date, Somai has not provided any of the required documentation to FSRA,” the notice of proposal to revoke Somai’s license states. It also noted that Somai had previously been cautioned for failing to complete required CE credits and for providing inaccurate information to FSRA in the past about her CE on licensing applications. Not responding to the regulator’s repeated efforts to get in touch with Somai, demonstrates her “ungovernability,” FSRA states. “The director has reasonable grounds to believe that Somai is not suitable for licensing under the (Insurance) Act.”