Cease And Desist Order Against Ian Stuart-Smith And Heritage International Inc. Carrying On Business As "Surplus Lines"


REGARDING THE INSURANCE ACT,
R.S.O. 1990, CHAPTER I.8,
AS AMENDED (“the Act”)


AND REGARDING A PROPOSED CEASE AND DESIST ORDER AGAINST IAN STUART-SMITH AND HERITAGE INTERNATIONAL INC. CARRYING ON BUSINESS AS "SURPLUS LINES"

 

CEASE AND DESIST ORDER

 

BACKGROUND

On October 21, 2003,  the Superintendent of Financial Services (“Superintendent”) issued a Notice of Proposed Cease and Desist Order indicating that the Superintendent proposed making an Order against Ian Stuart-Smith and Heritage International Inc. (“respondents”). That notice was later amended on January 20, 2005.  The Notice indicated that the respondents had 15 days to request in writing a hearing before the Financial Services Tribunal.

 

On December 29, 2003, the respondents requested a hearing before the FST. However, on April 11, 2005, the respondents withdrew their request for a hearing.

 

Pursuant to subsection 441 (7) of the Insurance Act, when no request for a hearing is received, the Superintendent of Financial Services may make an order in accordance with the Notice which shall take effect on the date set out in the order. Since the respondent’s request for a hearing has been withdrawn, the Superintendent makes the following Order:

 

CEASE AND DESIST ORDER

Ian Stuart-Smith, also known as Ian Stuart and Heritage International Inc.,carrying on business under the name Surplus Lines, are ordered to:

 

A.         Immediately cease acting as insurance agents in Ontario unless and until an agent’s licence is issued under the Ontario Insurance Act or registration is granted under the Registered Insurance Brokers of Ontario Act. 

           

B.         Immediately cease engaging in securing, placing, attempting to secure, attempting to place, or negotiate, insurance coverage sought by members of the public and/or insurance agents and/or insurance brokers on behalf of the agents’ or brokers’ clients. 

 

C.        Immediately cease collecting or receiving money or anything else of value from any insurance agent, insurance broker and/or any member of the public in exchange for securing, placing, attempting to secure, attempting to place, and/or negotiating insurance coverage of any kind.

 

D.        Immediately cease in engaging in any form of advertisement or solicitation for securing, placing or negotiating the sale or renewal of any insurance policy.

           
TAKE NOTICE THAT section 447(2)(b) of the Insurance Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on a 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.

AND FURTHER TAKE NOTICE THAT section 447(4) of the Insurance Act provides that every director, officer, and chief agent of a corporation who caused, authorised, 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 a 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.

 

This Order takes effect upon the date it is signed.


ISSUED AT the City of Toronto, April, 2005

 

 

                                                                

Bryan P. Davies

Superintendent of Financial Services

 

TO:                
Mr. Ian Stuart
908 Tegal Place
Newmarket, Ontario
L3X 1L3

 

AND TO:      
Heritage International Inc.
1595 Sixteenth Ave
Richmond Hill, Ontario
L4B 3N9