Notice of Proposed Cease and Desist Order and Interim Cease and Desist Order against Premiere Insurance Solutions (“Premiere”), 1791126 Ontario Inc., Jermaine Jones and XXXXXXXXXXXX.

REGARDING the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular section 441.

AND REGARDING a Proposed Cease and Desist Order against Premiere Insurance Solutions (“Premiere”), 1791126 Ontario Inc., Jermaine Jones and ___________.

 

AND REGARDING an Interim Cease and Desist Order against Premiere Insurance Solutions (“Premiere”), 1791126 Ontario Inc., Jermaine Jones and __________.

 

NOTICE OF PROPOSED CEASE AND DESIST ORDER

and

INTERIM CEASE AND DESIST ORDER

 
The Superintendent of Financial Services ("Superintendent") is of the opinion that Premiere Insurance Solutions, 1791126 Ontario Inc., Jermaine Jones and _______________ have committed unfair or deceptive acts or practices. The particulars are set out in the Report of the Superintendent which will be served upon 1791126 Ontario Inc., Jermaine Jones and _______________ with this Notice and Order. 
 
Pursuant to section 441(2) of the Act, the Superintendent intends to order 1791126 Ontario Inc., Jermaine Jones, _______________, and any of their agents and representatives, to: 
 
A. Cease acting or holding themselves out as insurance agents in the Province of Ontario;
 
B. Cease offering, or assuming to act in the negotiation of insurance in the Province of Ontario,
 
C. Cease any advertisement stating that they, or Premiere Insurance Solutions, can arrange automobile insurance;
 
D. Cease soliciting, receiving, or collecting payments and/or premiums in respect or any contract or policy of insurance.
 
WITHIN 15 DAYS after receiving this notice, the persons named in this notice may request in writing that the Financial Services Tribunal hold a hearing before the Superintendent takes any action described in this notice.
 
IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a permanent order in accordance with this notice, which shall take effect on the date set out in the order.
 
Any request for a hearing should be directed to:
 
Financial Services Tribunal
5160 Yonge Street
Toronto ON  M2N 6L9
Fax No.: (416) 226-7750
 
Attention: Registrar
 
If a hearing is requested, section 441(8) of the Act provides that if the Financial Services Tribunal is of the opinion that a Cease and Desist Order should be made, the Tribunal may make an order which shall take effect on the date set out in the Order.
 
At the hearing, your good character, propriety of conduct or competence may be in issue.
 
The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure of the Financial Services Tribunal under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, Chapter S.22.  The Rules of Practice and Procedure are available at the website of the Tribunal: http://www.fstontario.ca [New Window].  Alternatively, a copy can be obtained by telephoning the Registrar of the Financial Services Tribunal at (416) 226-7294, or toll free at 1-800-668-0128 ext. 7294.
 
You may be furnished with further or other particulars in respect of any matter herein or in respect of any other matter, including further grounds to impose a Cease and Desist Order.
 

INTERIM CEASE AND DESIST ORDER

 
Pursuant to section 441(4) of the Act, the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by a delay in the issuance of a permanent order for the following reasons:
 
  1. _______________ recently arranged for radio advertising inviting members of the public to contact “Premiere Insurance Solutions” in order to get affordable car insurance.
  2. Premiere is an unincorporated entity.
  3. Premiere applied for and obtained temporary auto insurance for members of the public using false personal information. It led its customers to believe that it had obtained viable insurance and required that the customers pay premiums in respect of that insurance to 1791126 Ontario Inc. Jermaine Jones is the sole officer and director of that corporation.
  4. That temporary insurance was quickly cancelled by the insurers once it became clear the applications included false information.
  5. The customers were left without car insurance and without the premiums they paid for that coverage to 1791126 Ontario Inc.
  6. 1791126 Ontario Inc., Jermaine Jones and _______________ are not licenced under the Insurance Act or the Registered Insurance Brokers of Ontario Act, and are therefore prohibited from acting as insurance agents or brokers, holding themselves out as agents or brokers, or from carrying on the business of insurance in Ontario.
  7. Their activities in connection with Premiere contravene the Insurance Act and place the public at risk of being misled into paying premiums for car insurance that does not exist.
 
In accordance with section 441(4) of the Act, the Superintendent, without prior notice, may make an interim order which will take effect immediately.
 

INTERIM ORDER

 
Effective this date, pursuant to section 441(4) of the Act, the Superintendent orders that 1791126 Ontario Inc., Jermaine Jones, _______________, and any agents, representatives and successors thereof:
 
A. Immediately cease acting as insurance agents in the Province of Ontario;
 
B. Immediately cease offering, or assuming to act in the negotiation of insurance in the Province of Ontario,
 
C. Immediately cease holding themselves out as insurance agents in the Province of Ontario;
 
D. Cease soliciting, receiving, or collecting payments and/or premiums in respect or any contract or policy of insurance.
 
If a hearing is requested pursuant to the Notice of Proposed Cease and Desist Order, the Superintendent may extend the Interim Cease and Desist Order until the hearing before the Financial Services Tribunal is concluded.
 
Section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.
 
Section 447(4) of the Act provides that every director, officer, and chief agent of a corporation who caused, authorized, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.
 
ISSUED AT the City of Toronto, this 19 day of December, 2012.
 
 
Original signed by
 
______________________________
Philip Howell
Superintendent of Financial Services