Satel inc. agrees to pay administrative penalty of $35,000
Insurance Decisions and Freeze and cease trade orders
In March 2013, the Bureau de décision et de révision ("Bureau") approved an agreement reached between Satel inc., a life and health insurance firm, and the Autorité des marchés financiers ("AMF") whereby Satel agreed to pay a $35,000 penalty.
This matter is further to an AMF inspection that revealed violations under An Act respecting the distribution of financial products and services and its regulations, in particular:
- inadequate supervision of representatives, particularly with respect to the protection of personal information;
- failure to retain a copy of the financial needs analysis in most of the client files that were audited;
- inadequate conservation of client files;
- failure by representatives to provide clients with an information document on products offered, as stipulated by regulation, and failure to place such information documents in client files;
- non-compliant procedure for complaint examination and dispute resolution;
- use of a corporate name that was not reported to the AMF and could mislead clients regarding the identity of the legal person they are dealing with, namely, AIL Canada.
It should be noted that the AMF revoked Satel's registration, at its request.
In conjunction with this matter, American Income Life Co. has taken measures to ensure appropriate client follow-up with respect to policies currently in force, in addition to setting up a mechanism for converting group insurance policies into individual insurance policies for clients who make such a request.