An agreement has been reached between the Autorité des marchés financiers ("AMF") and Scotia Life Insurance Company ("ScotiaLife") whereby an administrative penalty in the amount of $500,000 has been paid for failures related to the distribution of insurance products.
The AMF claimed that ScotiaLife offered ScotiaLife Accidental Death Insurance, complimentary ScotiaLife Accidental Death Insurance and ScotiaLife Hospitalization Insurance products over 18 years through persons who were not certified for such purpose, namely, employees of a telemarketing firm.
During the last five years, ScotiaLife sold more than 25,000 policies and collected from $8,676,993 to $10,050,345 in premiums.
ScotiaLife has discontinued its distribution of the above-mentioned insurance products and implemented the measures needed to ensure that the distribution of all its products takes place in accordance with the law.
Moreover, ScotiaLife has notified all persons who are still insured with the products at issue that a certified representative is available to answer any questions they might have regarding these products.