Premium rebateIan Roy and Stéphane Corbeil fined over $220,000
Insurance Decisions and Freeze and cease trade orders
Montréal - On April 4, 2016, Judge Erick Vanchestein of the Court of Québec, district of Sherbrooke, ordered Ian Roy and Stéphane Corbeil to pay fines totalling $220,607 in connection with premium rebates granted toward the purchase of life insurance policies. More specifically, Ian Roy was ordered to pay fines totalling $137,592 and Stéphane Corbeil was fined a total of $83,015.
On March 23, 2016, the respondents pleaded guilty to the seven charges brought against them by the Autorité des marchés financiers ("AMF") as part of a penal proceeding. The regulator charged them with granting seven clients a premium rebate that did not appear in the insurance contract issued by the insurer. The AMF investigation revealed that the respondents offered these clients a full refund of the premiums paid for the universal life insurance policies they had purchased.
However, the clients did not have the financial resources needed to pay the policy premiums. The AMF demonstrated that after the contracts were purchased, Ian Roy and Stéphane Corbeil received sizeable commissions tied to the insurance policies.
In his decision, Judge Vanchestein took into account a number of factors, including the seriousness and duration of the offences, the large number of policies issued by the respondents as part of the ploy as well as their knowledge of the market, since they had been representatives registered with the AMF for numerous years, in particular as representatives in insurance of persons.
Stéphane Corbeil is the subject of another penal proceeding launched by the AMF in which he is charged with pursuing illegal activities as a representative in insurance of persons.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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