A former British Columbia insurance broker has been banned from the industry for 10 years after an investigation revealed she fraudulently collected commissions on vehicle insurance policies that were quickly cancelled.
According to a February 25 decision from the Insurance Council of B.C., Megistefi Gjine issued 25 one-year Insurance Corporation of British Columbia (ICBC) policies on new or newer luxury vehicles before canceling them within days. The regulator concluded that Gjine acted dishonestly and exploited ICBC’s commission system for personal financial gain.
Gjine, who was first licensed as a Level 1 insurance salesperson in 2019 and later became a Level 2 agent in 2020, processed the policies between May 2020 and April 2021. Most of the policies - 22 of the 25 - were taken out by a numbered company owned by a relative. One policy was issued to a company where she served as president.
Each transaction earned Gjine between $600 and $700 in commission, totaling an estimated $15,000 to $17,500. The council found that she knowingly sold full-term policies instead of temporary operation permits, which are required when a vehicle will be insured for only a short period.
The scheme came to light in 2021 when ICBC identified a pattern of suspicious transactions at Gjine’s brokerage, where more than 40 one-year policies were cancelled within 30 days of issuance. ICBC permanently barred her from conducting Autoplan business in 2022, leading to her termination from her agency.
The Insurance Council also criticized Gjine’s conduct during the investigation, stating that she was dishonest, misleading, and not forthcoming about her involvement. The council determined that she made false declarations to ICBC and engaged in a conflict of interest by processing a transaction for a company in which she had a direct relationship. The decision also noted that Gjine facilitated transfers of ownership for multiple luxury vehicles and failed to exercise due diligence, despite clear indications that the policies were being misused.
As part of its investigation, ICBC interviewed Gjine in October 2021, during which she claimed she sold full-term policies based on how long customers intended to use the vehicles. However, the council found her responses to be misleading and determined she had “a flagrant disregard” for industry rules.
The council reviewed similar cases before issuing its decision and found that while other brokers were fined or suspended, Gjine’s prolonged misconduct warranted a more severe penalty. While the regulator would normally impose a fine and investigation costs, it opted not to do so due to Gjine’s serious medical condition, citing concerns that financial penalties could negatively impact her health.
In addition to the 10-year ban, Gjine must complete an ethics course before she can apply for an insurance license in the future.
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