RIBO urges caution around unlicensed intermediaries

Following the conviction of an insurance wholesaler in Saskatchewan, the Registered Insurance Brokers of Ontario (RIBO) and some insurers are issuing warnings to brokers.
In a general warning in its quarterly newsletter, RIBO notes that brokers should proceed with “extreme caution” when dealing with unregulated intermediaries. Ontario is the only province that does not require wholesale intermediaries to be licensed. The newsletter also reprints an article by South Western Group advising brokers deal with intermediaries who represent licensed insurers and carry errors and omission (E&O) coverage.
The warnings follow the conviction of Ian Stuart-Smith (aka Ian Stuart and Ian Smith) in the Court of Queen’s Bench in Saskatoon for having an insurer act on a forged certificate of insurance. Stuart-Smith has operated under the company names Surplus Lines Inc. and Heritage International Inc.
Both Lloyd’s and Great American Insurance Group have issued notices that Stuart-Smith and the companies he operates do not have the authority to issue policies for them. Lloyd’s recommends that anyone thinking they have placed business through Stuart-Smith or his companies should contact their broker or insurer to see if they indeed have coverage.