January 18, 2011 by Canadian Underwriter
The Insurance Council of British Columbia is reminding insurance agents that any payments made to a property manager of a condo building or other third party must first be disclosed to the strata corporation.
A strata corporation is a legal entity made up of owners of units in a condo development. It is responsible for managing and maintaining the common property and assets of the development. Its specific obligations are usually performed by a council, agents or employees, which it hires.
“It has come to the attention of the Insurance Council of British Columbia that one or more property managers involved in the management of strata corporations are seeking to be compensated by insurance agents in return for placing a strata corporation’s insurance,” a notice from the Insurance Council says.
“Insurance agents are reminded that any payments made to a property manager or other third party, either directly or indirectly, must first be disclosed to the strata corporation.”
Failure to do so, the council continues, is a breach of the council’s Code of Conduct and subject to disciplinary action.
Similarly, the council noted that property managers are required to make similar disclosures.
Any attempts by a property manager to solicit a direct or indirect payment from an insurance agent on the understanding it will not be reported to the client should be reported to the Real Estate Council of British Columbia, the Insurance Council says.