The Financial Services Regulatory Authority of Ontario (FSRA) has taken enforcement action against insurance agent Stewart Edward Ranft over allegations of fraud and misconduct.
Ranft is accused of making false and misleading statements and representations to an insurer during the registration of insurance, a violation of section 17(c) of Ontario Regulation 347/04.
Additionally, Ranft allegedly provided false or misleading information in his license renewal application, contravening section 447(2)(a) of the Insurance Act, the FSRA said.
In light of these allegations, the FSRA has determined that Ranft is not suitable to hold an insurance agent licence and is proposing to refuse the renewal of his licence.
The regulator is also proposing to impose administrative penalties amounting to $56,000.
In response, Ranft has requested a hearing before the Financial Services Tribunal.
Ranft was licensed as a life Insurance and accident & sickness insurance agent, according to FSRA’s notice of proposal. His licence expired on January 26, 2022, and he applied for its renewal in July of the same year.
Between August 2019 and February 2021, Ranft prepared and submitted a total of 49 life insurance policy applications to Assumption Life, using fabricated identities to arrange for the issuance of the policies, according to the FSRA.
To accomplish this scheme, the FSRA claimed that Ranft completed the applications by inputting false information and avoided scrutiny by ensuring that the fictitious applicants were aged 35 to 55 with a good health record.
The FSRA said all 49 life insurance policies issued as part of the scheme were whole life policies to maximize commissions.
Separately, Ranft is alleged to have provided false information in his insurance agent licence renewal application.
According to FSRA, his application stated that no complaint had ever been lodged against him with a regulatory body and that he was not under investigation at the time. However, the investigation revealed that Assumption Life had reported his misconduct in 2021.
What are your thoughts on this story? Feel free to comment below.
