The Financial Services Commission of Ontario received 38 complaints about the conduct of insurance agents and adjustors for the fourth quarter. The complaints included allegations of fraud, forgery, misrepresentation and agent misconduct.

FSCO disclosed the complaints in a report detailing its compliance and enforcement actions during the fourth quarter of 2003.

There were nine complaints still open at the start of the quarter, and by the end of the period 19 complaints were open. Five cases were resolved, 10 were closed, and 13 were forwarded for potential enforcement. Cases may be closed for a variety of reasons. FSCO says the most common reasons are: the issue raised is outside FSCO’s jurisdiction; there is insufficient evidence to substantiate a complaint; or the complaint is unfounded.

During the fourth quarter of 2003, 33 cases were forwarded to investigations. Of that total, 18 cases related to agents and adjusters, one related to insurance companies, 10 involved mortgage brokers, three related to credit unions, and one concerned loan & trust companies. Regarding the 18 cases against agents, 13 of these were complaints about agent conduct, and the other five involved doing business without a licence.

A total of 37 investigations were completed in the period. Of these, 19 ended with charges laid in Provincial Offences Court, three saw superintendent’s orders issued, seven Letters of Censure were issued, and eight cases were closed with no enforcement action warranted. Also, during the fourth quarter, 46 Letters of Warning were issued to life agents, all of whom were late in applying for licence renewal. Letters of Warning do not require formal investigations and are not included in the preceding statistics.

Over the past 12 months (January 1, 2003 – December 31, 2003), FSCO took 146 enforcement actions. This included: 46 Letters of censure being issued, three had conditions placed on their licences, 10 court convictions and fines, 10 cases of sponsorship being revoked, 17 licence suspensions, 27 licence surrenders, 15 licence revocations, two Cease & Desist orders, one disciplinary cautions, two undertakings, and 13 terminations of paralegal filing.