Life insurance agent slapped with penalties for redirecting policy funds
Life insurance agent slapped with penalties for redirecting policy funds | Insurance Business Canada
Insurance News
Life insurance agent slapped with penalties for redirecting policy funds
He will no longer be able to renew his license
Insurance News
By
Mika Pangilinan
Ontario’s financial services regulator has imposed administrative penalties on a life insurance agent for his participation in a scheme to obtain funds from a policy.
According to the Financial Services Regulatory Authority of Ontario (FSRA), Vineet Anand initiated a sequence of actions to redirect policy funds to his father, an insurance agent.
A longstanding client of Anand’s father held an Empire Life policy with a death benefit of around $275,000. The client’s spouse had been the designated beneficiary, but following her death, Anand moved to redirect the funds from the policy to a new one where his father was named the annuitant.
As part of his scheme, Anand reportedly created a letter using a blank paper pre-signed by directing Empire Life to transfer ownership of the policy to the annuitant. The letter contained the following phrase: “Upon my death, the named annuitant, Vinod Anand, will become the owner of this policy.”
On another occasion, Anand initiated a transfer of approximately $90,000 from a Canada Life policy owned by the client to the one connected with his father.
FSRA said in its enforcement action that Anand contravened the Insurance Act by failing to disclose a conflict of interest. It specifically cited section 16 of Ontario Regulation 347/04
Aside from having to pay $10,000 in administrative penalties, Anand will no longer be able to renew his license.
The final order from FSRA said: “Vineet Anand has undertaken that he will never apply to FSRA for a license to perform any act and/or provide any services for which a license is required from FSRA, either directly or indirectly through a corporate entity in which he is an officer or director or majority shareholder, or through a partnership. This includes, but is not limited to, applying for a license under the Act.”
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