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Proposed Cease and Desist Order and Interim Cease and Desist Order against Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke

 

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 Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke.
 

AND REGARDING an Interim Cease and Desist Order against Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke.

 

NOTICE OF PROPOSED CEASE AND DESIST ORDER

and

INTERIM CEASE AND DESIST ORDER

 
 
The Superintendent of Financial Services ("Superintendent") is of the opinion that Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke, has or have committed unfair or deceptive acts or practices by acting as insurance agents in the Province of Ontario without a licence, by making false or misleading statements as to the terms benefits or advantages of any contract of insurance issued or to be issued, and by knowingly procuring the payment of premiums by fraudulently representing themselves as being the authorized representative of an insurer.  The particulars are set out in the Report of the Superintendent which will be served upon Summit Underwriting Group Inc, and Jared Howard Clarke with this Notice and Order. 
 
Pursuant to section 441(2) of the Act, the Superintendent intends to order Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group and Jared Howard Clarke and any of their agents, representatives and successors thereof, to: 
 
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;
 
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, Ontario 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://financialservicestribunal.on.ca.  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. The Superintendent is of the opinion that Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke (collectively referred to as "Summit") are acting as insurance agents in Ontario;
  2. Summit is not licensed as either an insurance agent or as an insurance broker in Ontario;
  3. Despite being unlicensed, Summit has falsely held itself out as being the authorized agent of the Prudential Assurance Company. It has sold policies purported to be issued by Prudential and collected premiums in respect of those policies. In fact, Summit is not an agent of Prudential and the policies are worthless. The conduct of Summit is fraudulent.
  4. Summit’s activity in this regard violates the licensing scheme in the Act, and endangers the public who may be falsely led to believe that insurance is in place. An Order with immediate effect is appropriate in the circumstances.
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 Summit Underwriting Group Inc, carrying on business as Summit Underwriting Group, and Jared Howard Clarke 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;
 
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 30 day of March, 2011.
 
 
 
Philip Howell
Superintendent of Financial Services
 
TO:              
Summit Underwriting Group Inc.
Jared Howard Clarke
205 - 232 Merton Street
Toronto, Ontario M4S 1A1
Fax: 1-800-508-6630
 
AND TO:      
Stephen Scharbach
Financial Services Commission of Ontario
Legal Services Branch
5160 Yonge Street, Suite 1700
Toronto ON  M2N 6L9
Tel: 416-590-7244
Fax: 416-590-7556