FSRA Cracks Down on Unlicensed Insurance Activity
Ontario’s Financial Services Regulatory Authority (FSRA) has imposed a significant $100,000 administrative penalty on Kostyantyn Poshtarenko for conducting insurance business without a valid license. Poshtarenko was found to have violated key provisions of the Insurance Act and Ontario Regulation 347/04 by operating as an insurance agent without the necessary authorization.
The enforcement action was taken after Poshtarenko failed to request a hearing before the Financial Services Tribunal or contest FSRA’s proposed penalty. This decision comes amid growing concerns about insurance fraud in Ontario, with the Insurance Bureau of Canada estimating that fraudulent activities in the province’s insurance sector cost between $770 million and $1.6 billion annually.
Fraudulent activities, including staged collisions, false claims, and the distribution of fake insurance documents, not only lead to increased premiums but also strain regulatory and enforcement resources. In response to these challenges, FSRA has implemented the Fraud Reporting Service (FRS) Rule, requiring insurers to report suspected fraud cases to better understand and combat automobile insurance fraud.
In addition to this enforcement action, FSRA has issued consumer alerts regarding other unlicensed insurance activities. One such alert warns against doing business with Wangro Antoun, also known as Yasser Antoun, who is believed to be operating in the Greater Toronto Area and Windsor, offering discounted auto insurance premiums despite not being licensed to sell insurance in Ontario.
Another alert was issued against Hero Life Insurance, which FSRA states is not licensed to conduct insurance business in Ontario. The company has been contacting consumers by phone and email to sell life and health insurance products, with reports of representatives posing as licensed agents and pressuring individuals for personal and confidential information. Consumers have been advised not to engage with Hero Life Insurance.
FSRA continues to take action against unlicensed insurance activity, reminding consumers that only licensed agents and companies are authorized to sell insurance under Ontario law. Individuals who believe they may have been affected by these unlicensed activities are encouraged to contact their local police.
