If you have any clients or friends of clients that believe their salon equipment is insured, ask them to double check who has signed off on the policy.
The Financial Services Commission of Ontario (FSCO) is warning consumers that an individual known as Frank Domalewski is not licensed to conduct insurance business in Ontario, having signed a fraudulent insurance policy for pieces of salon equipment.
According to FSCO, the individual also provided a phone number on the false policy, 905-266-1366, extension 0124.
Brokers are urged to alert their clients if they are contacted by anyone matching this description.
Fraud costs the insurance industry millions in the auto sector alone, and those who fraudulently represent themselves as insurance agents, it costs the industry in reputation.
Maintaining a high level of ethics within the industry is important, says Brent Kelly, an agent with Clemens Insurance and an author on the subject of sales, marketing and business issues.
“The bottom line is that you must adhere to the regulations of your (province),” Kelly told Insurance Business. “As an agent, you have obligations to your clients, obligations to your agency, and obligations to the insurance companies.”
Consumers who purchase items or insurance from agents or insurers that are not licensed in the province, are not protected under the Insurance Act and the regulations that govern Ontario’s licensed insurance companies and agents, states FSCO, which makes it important for agents and brokers to provide information and advice on the risks involved with purchasing different insurance products.
FSCO's website contains a list of all
insurance companies and
agents licensed to do business in Ontario.
