Utmost good faith is supported by:
Materiality
Misrepresentation
Non-disclosure or concealment
Material facts can be divided into two time periods
(1) facts as they exist up to the time a contract is formed
(2) new facts that arise after the contract is formed
Four key steps to remedy a privacy breach
(1) contain - the breach and assess ways to reduce harm
(2) evaluate - risks associated with the breach
(3) determine - who needs to be notified of the breach
(4) prevent - future breaches by determining how the breach happened
Best defence for intermediaries against errors and omissions (E&O) claims
Documentation, communication, action
Code of conduct principles for Alberta
(1) trustworthiness
(2) good faith
(3) competence
(4) financial integrity
(5) dealing with clients
(6) dealing with insurers
(7) dealing with agents
(8) dealing with the public
(9) conduct specific to agents acting as insurance adjusters
(10) dealing with the Alberta Insurance Council
(11) compliance with governing legislation and the code
Examples of misconduct, trustworthiness:
- misappropriating funds
- using confidential client information for something else
- false insurance claims
- false declarations to insurers
Examples of misconduct, good faith
- signed as witness on documents when not in fact seen sign
- directed an unlicensed employee to act as an agent
- used premium money for personal use
- accessed client information without authority
Examples of misconduct, competence
- sold an insurance policy that was inappropriate given the clients stated objectives and circumstances and that a prudent agent wouldn’t have recommended
- failed to properly manage the business and financial aspects of an agency
Examples of misconduct, financial integrity
- failed to account for unauthorized transactions from a bank account over which the agent held power of attorney
- failed to refund all money due to a client in accordance with the cancellation provisions set out in a clients insurance contract
Examples of misconduct, dealing with clients
- an agent failed to fully assess a clients needs and objectives and neglected to advise the client of changes to the insurance plan as a consequence of a medical condition
- agent provided a copy of a clients insurance policy to other customers as an example of the product being offered
Examples of misconduct, dealing with insurers
- agent failed to remit to the insurer all premiums collected or received in accordance with the terms of the agency’s agreement to the insurer
- offered and bound terms under a policy that were not authorized by the insurer
Example of misconduct, dealing with the public
- advertising a premium that is subject to undisclosed requirements
- an agent must not defame or discredit the industry
Example of misconduct, dealing with the Alberta insurance council
- failing to reply within the time specified to a request from the AIC
- making material misstatements in reply to a request from the AIC
- swearing a false affidavit
