FSRA takes enforcement action against MGA

An insurance firm and a handful of agents are facing enforcement allegations from Ontario’s Financial Services Regulatory Authority (FSRA), which has suspended them until the allegations can be heard.

FSRA announced today that it launched enforcement action against Daumier Financial Services Inc. and five agents who had managing general agency agreements with the firm, alleging all parties violated insurance rules by “making false or misleading statements” in connection with the sale or registration of insurance.

As a result, FSRA is proposing to revoke the licenses of the firm and the agents.

The allegations have not been proven.

FSRA first filed its allegations in February, issuing an interim suspension order against the firm and the agents saying there were “reasonable grounds to believe that the Daumier agents are no longer suitable to be licensed.” FSRA also cited “fraudulent representations to multiple insurance companies.”

The regulator said it imposed the temporary suspension to protect consumers.

“The Daumier agents are an imminent risk to the public as they have engaged in serious misconduct with two insurance companies,” FSRA said in a notice outlining the suspension.

According to FSRA filings, Daumier Financial was contracted with Foresters Life Insurance Co. and Specialty Life Insurance Inc.

“The serious nature and repeated pattern of misconduct, presents a significant risk of public harm if the Daumier agents continue to act as insurance agents,” FSRA said in its notice. “There are no lesser alternative measures which will adequately protect the public.”

Since the initial action by FSRA, the firm and the agents have all requested hearings into the allegations by the Financial Services Tribunal.

FSRA has extended the interim suspension until those hearings have concluded.