Alberta’s Superintendent of Insurance has issued small fines to nine insurance companies for paying commissions to unlicensed insurance agents.

In almost all of the cases, the unlicensed insurance agents were car dealerships. Dealers receive an annual Certificate of Authority from the Alberta Insurance Council authorizing them to sell equipment warranty insurance or creditor’s group insurance.

The Alberta Insurance Council, which monitors renewals of these certificates, reported the violations to the Superintendent of Insurance. The insurance policies sold by the unlicensed agents are still valid and remain in force until they expire. After investigating the violations, the Superintendent decided to issue administrative penalties ranging from $1,000 to $4,000.

Companies sanctioned under the Insurance Act for paying commissions to unlicensed agents are: St. Paul Guarantee Insurance Co.; Life Investors Insurance Co. of America; Sovereign General Insurance Co.; CIGNA Life Insurance Co.; Canada Life Assurance Co.; Old Republic Insurance Co. of Canada; American Bankers Insurance Co. of Florida; Motors Insurance Corp.; and, Millennium Insurance Co.