Canadian Underwriter

Why this broker was fined $700 after an acquisition

March 3, 2022   by David Gambrill

Concept of file sharing on blackboard, shows the concept of "transferring" a document

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An Alberta broker has been fined $700 for failing to transfer her broker’s license when the Co-operators General Insurance Company took over the ownership of her brokerage.

Brokers in Alberta and other provinces must have a license that is connected with a “sponsoring” company or brokerage. When a broker moves from one brokerage to another, the license from the first brokerage must be transferred over to the new “sponsoring” brokerage.

Alberta Insurance Council found that broker Christine Richard had sold 14 general insurance policies and was compensated for acting as an insurance agent by Co-operators General Insurance Company during the period of Mar. 2, 2021, to May 11, 2021, when she was without a valid license to represent The Co-Operators. For reasons that were not included in council’s decision, the Level 2 broker had not applied for a license transfer after the change in ownership.

The oversight came to the attention of the regulator when it received Richard’s application for a license renewal. “A review of the agent’s declarations revealed that the agent did not apply for a transfer of the Certificates of Authority when [The Co-operators] took ownership of the agency,” council noted in its decision.

Council’s decision notes the Co-operators confirmed the details regarding the sales.

“The Agent acknowledges the seriousness of this matter,” council notes in its decision. “There was one transfer fee of $25.00 that was missed for the unlicensed period….The agent acknowledges and regrets the mistake and is aware that any future occurrences may result in a potential fine amount as high as $1,000 per each unlicensed day.”

Excluding the unlicensed period, the broker was licensed from Dec. 7, 2017, to Aug. 26, 2021.

In a separate decision, council fined the broker an additional $100 for selling one life, accident and sickness policy for The Co-operators during the time she had not transferred her license.


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