Ontario’s Financial Regulator Takes Action Against Unlicensed Insurance Practices
The Financial Services Regulatory Authority of Ontario (FSRA) has revoked the insurance licenses of Daumier Financial Services Inc., Carmen Munoz Gutierrez, and Andres Antonio Hernandez Silva for violating provisions of the province’s Insurance Act. The regulator found that these individuals and the company made false or misleading statements when soliciting or registering insurance, which led to the conclusion that they were not suitable to be licensed.
The enforcement action was finalized after the parties involved withdrew their Requests for Hearing before the Financial Services Tribunal. Additionally, FSRA denied a license application from 1000532009 Ontario Ltd. based on similar grounds. In other related cases, FSRA concluded separate enforcement proceedings against Ana Huang Yu, Maylin Rodriguez Perez, and Michael Lue after their licenses had expired.
These decisions are part of a broader regulatory effort to combat unlicensed insurance practices and fraud in the sector. Earlier this year, FSRA imposed a $100,000 administrative penalty on Kostyantyn Poshtarenko for conducting insurance business without a valid license. The regulator had found that Poshtarenko breached provisions of the Insurance Act and Ontario Regulation 347/04, and he did not contest the proposed action or request a hearing.
FSRA has also issued a public warning regarding Hero Life Insurance, which is not licensed to conduct insurance business in Ontario. Representatives of Hero Life Insurance have allegedly posed as licensed agents to solicit personal and confidential information from consumers. The regulator has advised the public not to purchase insurance from Hero Life or engage with its representatives.
The Insurance Bureau of Canada estimates that insurance fraud in Ontario costs between $770 million and $1.6 billion annually. Common forms of fraud include staged accidents, false claims, and the sale of fake insurance policies, all of which contribute to increased premiums and additional strain on regulatory oversight.
