The applicant, a licensed life insurance agent, requested a hearing after the Superintendent of Financial Services issued a Notice of Proposal to impose a $2,000 administrative monetary penalty for failing to maintain errors and omissions insurance for over 14 months.
The applicant admitted to the failure but argued she was unaware of the penalty and had not conducted business during that time.
The Financial Services Tribunal found that the penalty was appropriate to promote compliance and deter others, noting that the applicant saved on premiums during the uninsured period.
The Tribunal ordered the imposition of the $2,000 penalty as proposed.