IN THE MATTER OF the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular sections 441, 441.2 and 441.3;
AND IN THE MATTER OF Jermaine Scott (“Scott”).
ORDER IMPOSING ADMINISTRATIVE PENALTIES
Scott is not and never has been licensed under the Act.
On November 4, 2022, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to make a compliance order requiring Scott:
i. to cease acting as an insurance agent, including the advertising, soliciting, offering, and sale of automobile insurance;
ii. to cease charging a premium allowance or fee other than as stipulated in a contract of insurance; and
iii. to cease making false or misleading statements or representations to an insurer;
and to impose three administrative penalties on Scott in the total amount of $20,000 as follows:
(i) $10,000 for acting as an agent without being licensed, contrary to subsection 2(1) of O. Reg. 347/04;
(ii) $5,000 for charging unstipulated fees, contrary to subsection 1(8) of O. Reg. 7/00; and
(iii) $5,000 for making false or misleading statements or representations to an insurer, contrary to paragraph 447(2)(a.1) of the Act.
The Notice of Proposal was delivered to Scott on December 28, 2022. Sections 441(3) and 441.3(5) of the Act provide that any person on whom a Notice of Proposal is delivered has fifteen (15) days after the Notice of Proposal is received to request a hearing by the Financial Services Tribunal (the “Tribunal”).
On February 1, 2023, the Assistant Registrar of the Tribunal confirmed that Scott did not request a hearing by the Tribunal in accordance with sections 441(3) and 441.3(5) of the
Act. Therefore pursuant to sections 441(7) and 441.3(7) of the Act, the Director makes the following order.
ORDER
Administrative penalties in the total amount of $20,000 are hereby imposed on Jermaine Scott, for the reasons set out in the Notice of Proposal.
For the reasons set out in the Notice of Proposal, it is hereby ordered that Jermaine Scott:
a. Cease acting as an insurance agent, including the advertising, soliciting, offering, and sale of automobile insurance;
b. Cease charging a premium allowance or fee other than as stipulated in a contract of insurance; and
c. Cease making false or misleading statements or representations to an insurer.
TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Jermaine Scott with information as to where and how to pay the administrative penalties. Jermaine Scott must pay the administrative penalties no later than thirty (30) days after the order is issued.
If Jermaine Scott fails to pay the administrative penalties in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is enforceable as such.
DATED at Toronto, Ontario,
February 8, 2023
Elissa Sinha
Director, Litigation and Enforcement
By delegated authority from the Chief Executive Officer
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