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Broker fined for out-of-province licensing muddle


April 24, 2018   by David Gambrill


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The Insurance Council of Manitoba has fined Randolph McGlynn of Advocis Brokers Services Inc. $2,000 for attesting that two agents were licensed to do business in Manitoba when in fact they never held agent licenses in the province.

Instead, the two agents were licensed to do business in their home jurisdictions outside the province, the Insurance Council of Manitoba noted in its April 11 decision.

The fact that the brokers held valid insurance agent licenses in their home jurisdiction was a “mitigating factor” in the decision, council said.

As the operating agent at Advocis Brokers Services, McGlynn was responsible for ensuring that the agency’s licensing and activities were compliant with Manitoba’s broker licensing rules, and that proper and adequate supervision of employees was provided, council noted.

Excluding McGlynn, two brokers were licensed for the agency between 2015 and 2017; they are referenced in council’s decision as Agent A and Agent B. Neither broker had held a license in Manitoba, the council decision notes, although they both held valid broker licenses in their home province.

In an example of what council describes as “unlicensed Manitoba activity,” Agent A provided advice to an insured professional who contacted the brokerage about his E&O insurance coverage on July 16, 2017. In an email to the brokerage, the client said “he planned on renewing his E&O, but he had been in Manila and subjected to an earthquake,” the council decision notes. “He noted that he did not have his credit card but would be renewing on July 22, 2017, when he returned to Winnipeg, Manitoba.”

Agent A advised the insured in an email that: “okay till then. Please give us a call when you can on the 22nd of July.”

In a second example, the last paragraph of the agency’s email to the client advised that if he “ceased practice, he may be eligible to purchase an Extended Reporting Period cover,” council noted. Agent B confirmed in an Apr. 21, 2016 email to the client that he was entitled to a five-year extended reporting period and a certificate was being issued.

Agent B was not licensed in Manitoba at the time of providing the advice, council found.

Council fined McGlynn after observing that he had signed a number of attestation papers. For example, on or about Mar. 10, 2017, council noted in its decision, McGlynn signed and submitted the council’s Agency Attestation Form, which included the following statement (among others):

“I understand that I am required…to ensure that no employee, director or partner who is not a licensed insurance agent acts as an insurance agent or broker.”

In addition, as an operating agent, McGlynn filled out his agent license renewal application form on Apr. 29, 2016 and May 2, 2017. In both instances, he answered ‘no’ to the following screening questions that asked whether he had knowledge of any:

  • “employees of the agency transacting insurance business without being duly licensed.”
  • “conduct and/or regulatory violation by any licensed employee of the agency not previously reported to ICM [Insurance Council of Manitoba].”