Notice of Proposed Cease and Desist Order and Interim Cease and Desist Order Against Security Insurance Inc.

 

REGARDING the Insurance Act, R.S.O. 1990, c. I.8, as amended (the "Act"), in particular section 441
 

AND REGARDING a Proposed Cease and Desist Order against Security Insurance Inc.
 

AND REGARDING an Interim Cease and Desist Order against Security Insurance Inc.
 

NOTICE OF PROPOSED CEASE AND DESIST ORDER

and

INTERIM CEASE AND DESIST ORDER

 

The Superintendent of Financial Services ("Superintendent") is of the opinion that Security Insurance Inc., its agents and/or representatives has or have committed unfair or deceptive acts or practices by undertaking or carrying insurance business in the Province of Ontario without a licence. The particulars are set out in the Report of the Superintendent which will be served upon Security Insurance Inc. with this Notice and Order. 

Pursuant to section 441(2) of the Act, the Superintendent intends to order Security Insurance Inc. and any agents, representatives and successors thereof, to: 
 
A. Immediately cease undertaking or carrying on the business of insurance in the Province of Ontario;
B. Immediately cease collecting money or anything else of value from any member of the public, in exchange for assisting in the placement of or placing insurance policies in Ontario of any kind;
C. Immediately cease soliciting the sale of insurance in any form in Ontario;
D. Immediately cease advertising in any form within Ontario; and
E. Immediately cease maintaining or operating in Ontario, either in the name of Security Insurance Inc. or in the name of any agent, representative or successor, an office for the transaction of the business of insurance either in or out of Ontario.
 
 
WITHIN 15 DAYS after receiving this notice, the persons named in this notice may request in writing that the Financial Services Tribunal hold a hearing before the Superintendent takes any action described in this notice.
 
 
IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a permanent order in accordance with this notice, which shall take effect on the date set out in the order.
Any request for a hearing should be directed to:
If a hearing is requested, section 441(8) of the Act provides that if the Financial Services Tribunal is of the opinion that a Cease and Desist Order should be made, the Tribunal may make an order which shall take effect on the date set out in the Order.
At the hearing, your good character, propriety of conduct or competence may be in issue.
The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure of the Financial Services Tribunal under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, Chapter S.22.  The Rules of Practice and Procedure are available at the website of the Tribunal: http://www.fstontario.ca.  Alternatively, a copy can be obtained by telephoning the Registrar of the Financial Services Tribunal at (416) 226-7294, or toll free at 1-800-668-0128 ext. 7294.
You may be furnished with further or other particulars in respect of any matter herein or in respect of any other matter, including further grounds to impose a Cease and Desist Order.
 
 

INTERIM CEASE AND DESIST ORDER
 

Pursuant to section 441(4) of the Act, the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by a delay in the issuance of a permanent order for the following reasons:
  1. The Superintendent is of the opinion that Security Insurance Inc. is undertaking or carrying on insurance business in Ontario;
  2. None of Security Insurance Inc. or its representatives are licensed to undertake or carry on insurance business in Ontario;
  3. Although Security Insurance Inc. is advertising and seeking to collect premiums, no insurance coverage, lawful or otherwise, is being provided. The conduct of Security Insurance Inc. is fraudulent;
  4. These acts are a flagrant violation of the licensing scheme in the Act and an Order with immediate effect is appropriate in the circumstances.
In accordance with section 441(4) of the Act, the Superintendent, without prior notice, may make an interim order which will take effect immediately.
 

INTERIM ORDER
 

Effective this date, pursuant to section 441(4) of the Act, the Superintendent orders that Security Insurance Inc. and any agents, representatives and successors thereof:
 
A. Immediately cease undertaking or carrying on the business of insurance in the Province of Ontario;
B. Immediately cease collecting money or anything else of value from any member of the public, in exchange for assisting in the placement of or placing insurance policies in Ontario of any kind;
C. Immediately cease soliciting the sale of insurance in any form in Ontario;
D. Immediately cease advertising in any form within Ontario; and
E. Immediately cease maintaining or operating in Ontario, either in the name of Security Insurance Inc. or in the name of any agent, representative or successor, an office for the transaction of the business of insurance either in or out of Ontario.
 
If a hearing is requested pursuant to the Notice of Proposed Cease and Desist Order, the Superintendent may extend the Interim Cease and Desist Order until the hearing before the Financial Services Tribunal is concluded.
Section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on 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.
Section 447(4) of the Act provides that every director, officer, and chief agent of a corporation who caused, authorized, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on 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.
 
 
ISSUED AT the City of Toronto, this 26th day of April, 2011.
 
 
 
Philip Howell
Superintendent of Financial Services
 
 
TO:              
Security Insurance Inc.
355 Adelaide Street
Suite 302
Thunder Bay, Ontario P7A 1A1
Fax: 1-800-508-6630
 
AND TO:      
Larissa Easson
Financial Services Commission of Ontario
Legal Services Branch
5160 Yonge Street, Suite 1700
Toronto ON  M2N 6L9
Tel: 416-226-7842
Fax: 416-590-7556