Interim Cease And Desist Order Against Antoinette Gail Freeman And 1301137 Ontario Inc. Operating As Take II, Take II Textiles, Take II Insurance And Take II Introvisuals

REGARDING the Insurance Act, R.S.O. 1990,
Chapter I.8, as amended, in particular
sections 393 and 441
AND REGARDING a Notice of Proposed Cease
and Desist Order Against Antoinette Gail
Freeman and 1301137 Ontario Inc. operating as
(“1301137 Ontario Inc.”)
AND REGARDING an Interim Cease and Desist
Order Against Antoinette Gail Freeman and
1301137 Ontario Inc. operating as TAKE II,
TAKE II TEXTILES, TAKE II INSURANCE
and TAKE II INTROVISUALS (“1301137
Ontario Inc.”)

 

NOTICE OF PROPOSED CEASE AND DESIST ORDER
- and -
INTERIM CEASE AND DESIST ORDER

The Superintendent is of the opinion that Antoinette Gail Freeman and 1301137 Ontario Inc., operating as TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS (“1301137 Ontario”), have committed and are committing unfair or deceptive acts or practices by contravening subsection 393(23) of the Act by acting as an insurance agent without the licence required under the Act. The particulars are
set out in the Report of the Superintendent appended as Appendix “A” to this Notice.

TAKE NOTICE THAT pursuant to subsection 441(2) of the Act, the Superintendent intends to order Antoinette Gail Freeman and 1301137 Ontario Inc. to cease or refrain from:

(a) holding themselves out as an insurance agent or consultant;
(b) using the name “TAKE II INSURANCE” and any other business name
containing the word “insurance” or “assurance”;
(c) soliciting insurance on behalf of an insurer or on behalf of the Facility Association under the Compulsory Automobile Insurance Act;
(d) engaging in any form of advertisement, advice, solicitation or negotiation
relating to the sale of insurance to the public.
(e) transmitting, for a person other than herself or itself, an application for, or a
policy of insurance to or from an insurer or the Facility Association.

AND FURTHER TAKE NOTICE THAT pursuant to clause 441(2)(c) and subsection 441(4) of the Act, the Superintendent intends to order that Antoinette Gail
Freeman and 1301137 Ontario Inc. operating as TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS immediately notify, in writing, all persons who have purchased or are purchasing any form of insurance, as defined in the Act, that they are not authorized to provide or sell any form of insurance, provide such persons with a copy of this Interim Cease and Desist Order, and provide copies of every notification sent to such person to the Superintendent forthwith.

Within 15 days after receiving this notice, you may request in writing, that the Financial Services Tribunal hold a hearing on whether the Superintendent should issue a permanent cease and desist order.

If no hearing is requested within 15 days, the Superintendent may make an order in accordance with this notice.

Your written request for a hearing should be directed to:

Financial Services Tribunal
5160 Yonge Street, Box 85
14th floor
Toronto ON M2N 6L9
Attention: Rhonda Booth
Registrar

INTERIM CEASE AND DESIST ORDER

Subsection 441(4) of the Act provides that if the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order under subsection 441(2), the Superintendent, without prior notice, may make an interim order as described in subsection 441(2) which shall take effect
immediately on its making, and which shall become permanent on the 15th day after its making unless within that time the person requests a hearing before the Financial Services Tribunal.

The Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order under subsection 441(2) for the following reasons:

(a) Antoinette Gail Freeman and 1301137 Ontario continue to act as an
agent without a license;
(b) anyone who purchases insurance arranged by Antoinette Gail Freeman
and 1301137 Ontario will probably pay Antoinette Gail Freeman and
1301137 Ontario an unnecessary fee ranging from $80 to $550;
(c) because Antoinette Gail Freeman and 1301137 Ontario are not
qualified as an agent:

– consumers who purchase insurance from them do not receive the advice to which they are entitled;
– those consumers could be at risk if there was negligence or
misrepresentation by Antoinette Gail Freeman and 1301137 Ontario in the placing of the insurance business;
– more particularly, those consumers would suffer significant
financial and personal hardship if they incur a loss that is not
properly insured because of negligence or misrepresentation by
Antoinette Gail Freeman and 1301137 Ontario in the placing of
the insurance business;
– there is a risk that insurers will terminate policies if they
discover that the policies were arranged by Antoinette Gail
Freeman and 1301137 Ontario.

TAKE NOTICE THAT pursuant to subsections 441(2) and 441(4) of the Act, the Superintendent orders that Antoinette Gail Freeman and 1301137 Ontario Inc. operating as TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS cease or refrain from:

– holding themselves out as an insurance agent or consultant;
– using the name “TAKE II INSURANCE” and any other business name
containing the word “insurance” or “assurance”;
– soliciting insurance on behalf of an insurer or on behalf of the Facility
Association under the Compulsory Automobile Insurance Act;
– engaging in any form of advertisement, advice, solicitation or
negotiation relating to the sale of insurance to the public;
– transmitting, for a person other than herself or itself, an application for,
or a policy of insurance to or from an insurer or the Facility
Association.

AND FURTHER TAKE NOTICE THAT pursuant to clause 441(2)(c) and subsection 441(4) of the Act, the Superintendent orders that Antoinette Gail Freeman and
1301137 Ontario Inc. operating as TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS immediately notify, in writing, all persons who have purchased or are purchasing any form of insurance, as defined in the Act, that they are not authorized to provide or sell any form of insurance, provide such persons with a copy of this Interim Cease and Desist Order, and provide copies of every notification sent to such person to the Superintendent forthwith.

AND FURTHER TAKE NOTICE THAT this Interim Cease and Desist Order shall become permanent unless within fifteen (15) days you have requested a hearing before the Financial Services Commission as to whether the Superintendent should issue a permanent cease and desist order.

AND FURTHER TAKE NOTICE if you request a hearing before the Financial Services Tribunal, the Superintendent may extend the Interim Cease and Desist Order until the hearing is concluded.

AND FURTHER TAKE NOTICE THAT clause 447(2)(b) of the Act provides that anyone who fails to comply with any order made under the Act is guilty of an offence, and is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

AND FURTHER TAKE NOTICE THAT subsection 447(4) of the Act provides that every director, officer and chief agent of a corporation and every person acting in a similar
capacity who:

– caused, authorized, permitted or participated in the corporation
committing an offence, (i.e. failing to comply with this Interim Cease
and Desist Order); or
– failed to take reasonable care to prevent the corporation from
committing an offence, (i.e. failing to comply with this Interim Cease
and Desist Order),

is also guilty of an offence, and liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000, whether
or not the corporation has been prosecuted for, or convicted of, failing to comply.

ISSUED AT the City of Toronto, this day of March, 2005.


Bryan P. Davies
Chief Executive Officer and
Superintendent of Financial Services

TO:

Antoinette Gail Freeman
22 Southport Street, Suite #437
Toronto ON M6S 4Y9

AND TO:

1301137 Ontario Inc. o/a TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS
22 Southport Street, Suite #437
Toronto ON M6S 4Y9

Appendix “A”

  1. The Ontario Insurance Act requires that any person acting as an insurance agent have a licence issued pursuant to the provisions of the Act.
  2. The Act defines an insurance agent as:
    “agent” means a person who, for compensation, commission or any other thing of value,
    (a) solicits insurance on behalf of an insurer who has appointed the person to act as the agent of such insurer or on behalf of the Facility
    Association under the Compulsory Automobile Insurance Act, or
    (b) solicits insurance on behalf of an insurer or transmits, for a person
    other than himself, herself or itself, an application for, or a policy of insurance to or from such insurer, or offers or assumes to act in the negotiation of such insurance or in negotiating its continuance or renewal with such insurer, and who is not a member of the Registered
    Insurance Brokers of Ontario.
  3. Subsection 393(23) of the Act makes it an offence to act as an insurance agent without the licence required under the Act.
  4. Ontario Regulation 7/00 makes it an unfair or deceptive act or practice to commit any act prohibited under the Act.
  5. A complaint about the business practices of Antoinette Gail Freeman and 1301137 Ontario Inc. operating as TAKE II, TAKE II TEXTILES, TAKE II INSURANCE, and TAKE II INTROVISUALS (1301137 Ontario) was received by the Financial Services Commission of Ontario (FSCO) in March 2004. An investigation was conducted by the Investigations Unit of FSCO.
  6. I have reviewed the Investigation Report.
  7. As a result of the information set out in the Investigation Report I am satisfied as to
    the following:

(a) According to records at the Ministry of Consumer and Business Services, Antoinette Gail Freeman is the President of 1301137 Ontario.
(b) The registered head office of 1301137 Ontario is located at 22 Southport Street, Suite #437, Toronto ON M6S 4Y9.
(c) 1301137 Ontario has been operating under the following business names:
TAKE II TAKE II TEXTILES
TAKE II INSURANCE TAKE II INTROVISUALS
(d) Antoinette Gail Freeman and 1301137 Ontario have been acting as an insurance agent by selling automobile insurance and property damage
insurance in the City of Toronto and environs.
(e) Neither Antoinette Gail Freeman nor 1301137 Ontario have the licence required under the Act to act as an insurance agent.
(f) Antoinette Gail Freeman and 1301137 Ontario have attempted to evade compliance with the licencing requirement by holding themselves out as an "insurance consultant" instead of an insurance agent.
(g) On or about September 16, 2004 the FSCO investigator asked Antoinette Gail Freeman to sign Minutes of Settlement consenting to an order under the Insurance Act requiring Antoinette Gail Freeman and 1301137 Ontario to cease and desist acting as insurance agents.
(h) To date Antoinette Gail Freeman and 1301137 Ontario have been unwilling
to sign Minutes of Settlement, and they have continued to act as an insurance
agent without the licence required under the Act.

ISSUED AT the City of Toronto, this day of March, 2005.

Bryan P. Davies
Chief Executive Officer and
Superintendent of Financial Services