After an agent he was supervising sold unsuitable policies to a family interested in obtaining a mortgage, and after that agent bypassed compliance procedures, submitting the unsuitable policy applications to the insurer directly, Paul Quentin Bullock Spalding is being fined $2,500 and must pay investigation costs in the amount of $2,000 for providing inadequate supervision to a licensee who was the subject of an investigation.

The intended decision and order from the Insurance Council of British Columbia comes after the council received a complaint from the family who said they’d been approached by Spalding’s agent to join a first-time homebuyers’ seminar, hosted by the agency. In the complaint, the clients alleged that they were told to bring all existing life insurance policies, as they would need to be replaced to be approved for a mortgage.

“The licensee stated that the agent had not submitted all four policies of the family for review and approval as per the agency’s supervision process. The agent had only submitted Child Two’s policy for review,” the intended decision states. “The licensee explained that he delegated the process of supervising new business and suitability and the agency’s compliance department was responsible for reviewing business conducted.” He also stated that business was submitted via an online application to the agency’s head office where branch managers reviewed applications before they were sent to the insurer.

“The licensee agreed with the committee that Child Two’s application required further details regarding his financial circumstances to warrant the need for permanent insurance. However, the licensee stated that it was the agent’s responsibility to collect accurate financial information from Child Two and that it was not reasonable for him to question every application.” 

Licensed since November 1999 and the agency’s nominee since July 2011, Spalding was the agent’s supervisor from December 2018 until January 2021. In its decision, the council says Spalding did not fulfill his supervisory duties competently and adequately, calling his approach casual. “Council was concerned about the licensee’s repeated attempts to deflect his responsibilities as a supervisor to the managers,” they add.

In addition to the fine and costs, Spalding must also complete remedial coursework before April 2024, including the Council Rules Course for life and/or accident and sickness insurance and the Nominee Responsibilities and Best Practice Course for life and/or accident and sickness insurance.

Related: 

Supervision and remedial coursework ordered for unsuitable policies