B.C. insurance regulator fines unlicensed vehicle warranty seller $10,000 for breaching a cease and desist order

B.C.’s Financial Institutions Commission (FICOM) has fined Sea Won Pak (Steven Park) $10,000 for selling auto protection warranties despite not being licensed to sell insurance and in breach of a March 2012 cease and desist order.

In an order posted on its website, FICOM said it opted not to fine Park the maximum fine of $50,000 for corporations and $25,000 for individuals because he was not a “sophisticated” player in the industry, and no one had actually bought the vehicle warranty insurance he offered. “In short, there is no evidence of nay loss to consumers or other players in the insurance industry.”

Park was the sole director of West Coast Protection Warranty Inc., which also did business as West Coast Auto Protection Warranty Inc., and West Coast Auto Warranty Inc. Park is not a licensed insurance agent in B.C., and FICOM issued a March 2012 cease and desist order against Park and his companies, noting they were not authorized to conduct insurance business in B.C.

When FICOM received a complaint in April 2012 that Park was still offering vehicle warranty insurance for sale, A FICOM investigator called Park’s business on the pretext of buying a warranty and taped the conversation. “At no time during his conversation with [the FICOM investigator] did Park indicate that he was unable or unwilling to sell her vehicle warranty insurance,” FICIOM notes in its order, dated in June 2012.

In its decision, FICOM noted Park had taken down his company website and that Park indicated he is looking for an underwriter for the vehicle warranty insurance.