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B.C. dealer banned for misapplying premium funds “for years” Canadian Underwriter

B.C. dealer banned for misapplying premium funds “for years” Canadian Underwriter

A B.C. dealer repeatedly in scorching water for misapplying hundreds of dollars value of insurance coverage premium funds over a number of years has had his Degree three licence completely revoked.

As well as, Insurance coverage Council of B.C. fined Antony Ronald Fransen $7,500 personally and his company, Fransen Insurance coverage Providers Ltd. – which doubles as Sea to Sky (STS) Insurance coverage Providers – $15,000.

Fransen is completely banned from holding a Degree three license. Council held out the potential of him making use of for a Degree 1 license in March 2019, topic to him assembly sure circumstances. He can be eligible to attempt once more for his Degree 2 license two years after having a Degree 1 license.

“The report illustrates that Mr. Fransen and STS haven’t been financially dependable,” the Insurance coverage Council of B.C. present in its Jan. three, 2019 order. “From the outset of the operation of that [STS] enterprise he bumped into monetary difficulties and, in an effort to maintain the enterprise afloat and cope with his different monetary and authorized issues, he improperly used insurance coverage premiums he acquired from insureds fairly than remitting them to the insurers.

“This misconduct carried on for years. Removed from being remoted in nature, it was widespread apply and resulted in a number of complaints and disciplinary proceedings and orders to and by Council.”

Fransen has held a basic insurance coverage license for 25 years and was the nominee of Sea to Sky Insurance coverage Providers since its inception in 2009. He has been the topic of three earlier council disciplinary orders since Might 21, 2015.

The primary order in Might 2015 required him to retain a Licensed Skilled Accountant [CPA] to audit his company’s monetary place, in addition to submit a marketing strategy to council displaying how he would cope with “premium remittance deficiencies.” This adopted complaints to council by a number of insurers that they weren’t receiving hundreds of dollars value of premiums collected by the company.

In a single instance, in October 2013, an insurer acquired a cheque for $200,000 that bounced after inadequate funds. The insurer organized a six-month cost plan with the company, which honoured the cost plan. In one other state of affairs, an insurer arrange Sea to Sky Insurance coverage with company billing on business strains in 2009, solely to modify that to direct billing in January 2013 due to STS’s regularly late funds.

Council’s second order, in June 2015, suspended Sea to Sky’s licence as a result of it had not employed the CPA, as required within the first order. Fransen appealed the choice, which was stayed by the Monetary Providers Tribunal.

Council’s third order in March 2018 suspended Fransen’s license but once more. Among the many complaints that prompted the investigation was that he had collected $90,000 in premiums from shoppers that had not been positioned within the insurer’s account. Different funds have been positioned into an account not managed by a CPA, as required by the unique order.

Fransen informed council that his enterprise had began off slowly in 2009, with little money movement and excessive prices. Then he discovered himself having to defend a lawsuit. It was, as he described it to council, “a state of affairs of robbing Peter to pay Paul” to maintain his enterprise afloat.