ribo bulletin - winter 2015

WINTER 2015 • Volume 44 • NO. 146

REGISTERED INSURANCE BROKERS OF ONTARIO

B U L L E T I N

As the new President of RIBO, it is an

honour to write my first “President’s

Message”. To begin, I wish to thank all

those who participated in the recent Council

election, especially those who put their name

forward as a candidate. In the ‘plus 20’

category, Tracy McLean was re-elected to

Council and, in the ‘under 20’ category,

Marianna Michael received the most votes.

Peter Blodgett, having received the next highest

number of votes in either category, was also

elected. I look forward to working with them and

the rest of Council in the coming year.

I also wish to thank outgoing

President Beth Pearson as

well as Gil Constantini for

their exemplary service to

the profession through RIBO

Council.

The responsibilities of a

broker increase, and some-

times dramatically, when sig-

nificant changes are made to an available

product line. The most current example is

overland water and sewer backup coverage.

Brokers have been determining the best way

to ensure clients are aware of, and where

appropriate, benefiting from the evolving

coverage. In the coming weeks, significant

changes to Ontario auto insurance benefits will

be introduced, the majority of which are to take

effect June 1, 2016. Brokers are encouraged to

take every opportunity to educate themselves

about these changes and how they may im-

pact their clients. The IBAO, for example, has in-

dicated they will offer sessions to discuss the

upcoming changes. Those sessions will be

available to both members and, for a fee,

non-members. As we did in 2010, RIBO will issue

guidelines to assist brokers to develop and

implement a plan for communicating the

changes to clients, and on receiving and

documenting client instructions. By taking

advantage of these and

other resources, we will be

best able to serve our clients

effectively and efficiently.

Where a broker has any

questions or concerns about

their professional responsibilities

relating to these or any other

issues, please do not hesitate

to contact RIBO directly. Staff make every effort

to provide responses in a timely and responsive

fashion. Further, where numerous calls are

received on the same topic, RIBO is best able

to communicate globally so that all impacted

members benefit. Remember that the only sure

way of understanding RIBO’s perspective on

an issue is through direct communication with

RIBO, and not necessarily through a third party.

My personal best wishes to you and your

families for the Holidays and a healthy and

prosperous New Year.

IN THIS ISSUE2 President’s Message Annual Meeting 2015

3 Qualification & Registration Committee Report

4 Decisions of the Discipline Committee

6 Newly Appointed Members of RIBO Council

7 Additions & Deletions

7 Council Directory

8 Staff Directory

NORMA HITCHLOCK

PRESIDENT’S MESSAGE

DISCLAIMER: This publication includes information which is designed to heighten awareness of and minimize the risk of non-compliance with RIBO and other legislative requirements. The materialpresented does not establish, report or create the standard of care for brokers nor is the material a complete analysis of any of the topics covered. Readers should conduct their own due diligence,including where appropriate, seeking legal counsel with respect to their specific responsibilities.

Brokers are encouraged to take every opportunity to educate themselves

about these changes and how they may impact their clients.

~

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BULLETIN WINTER 2015 • Volume 44 • NO. 146

Good afternoon everyone and thank you for coming. My name is Beth Pearson, and I can think of no more appropriate way of commencing my remarks than by acknowledging the hard workand dedication of your RIBO Council.

BETH PEARSON

OUTGOINGPRESIDENT’S MESSAGE

It was an honour to have the confidence of

Council by serving as your President for the

2014/2015 term. There is no better or more

satisfying way of giving back to our profession

than by participating directly in its governance.

I am particularly happy to have had the

opportunity to meet so many of the members in

different parts of our province. The ability to

discuss issues of concern ‘face-to-face’ is

invaluable and I am confident that ours remains

a customer-focused and thoughtful profession.

As many of you may know, I previously served

with the Insurance Brokers Association of

Ontario, both on the Executive Committee and

as President. Both the IBAO and the Toronto

Insurance Conference excel at advocacy on

behalf of our profession, as well as creating

opportunities for professional development.

In that context, it is important to contrast RIBO’s

function, which is that of industry regulator, or

more accurately, ‘self-regulator’.

RIBO aims to fulfil its public protection mandate

in a thoughtful and progressive fashion…

fairness and responsiveness are key touchstones.

It is also important to remember that RIBO

Council consists of both elected brokers and

lay appointees from the provincial govern-

ment, working together to regulate the profes-

sion in the best interest of the public. While their

deliberations, decisions and direction are

informed by years of experience, broker self-

interest simply has no place at the table. It is

never the goal of RIBO to be burdensome or

bureaucratic. That said, our status as a

self-regulating profession necessitates that we

carry out our activities with a steady eye

on maintaining and enhancing public trust in

our profession.

There have been numerous media reports this

year about data breaches where personal

information is compromised in some fashion.

While this can occur through sophisticated

hacking, more frequently the breach occurs

through the loss or theft of a smart phone or

laptop computer. Brokers are required to

collect a significant amount of personal

information from our clients and employees.

We are also required to safeguard that infor-

mation and only use it in accordance with the

purposes for which we collect it. The obligation

to safeguard information existed in our Code

of Conduct long before Canada introduced

privacy legislation, but the impact of PIPEDA

and similar statutes heighten our obligations

and encourage a more formal process for the

collection/ use/ sharing and destruction of

personal information.

With that in mind, it is a good time for all of us

to review our data protection efforts and to

make sure they are up to date. Similarly, ensure

that the policies and procedures reflect what

is happening in our shops, with a keen eye on

protecting the personal information in our

possession. It is also important that we raise

awareness of data protection amongst our

staff through, for example, training sessions on

office policies and procedures. Remember

that data may be particularly vulnerable when

it is mobile, or accessed outside the protected

office environment, such as home offices and

coffee shops.

In the Spring of this year ‘overland’ water

coverage was at the forefront of discussions

between markets, brokers and regulators.

Indeed, in the past few weeks, we are once

again hearing much on this topic. In property

insurance, as with auto, Ontario consumers are

increasingly presented with a range of options

that enable them to select product features

they want. Consumers rely on us to explain

optional coverage, to help them to make an

informed decision. This undoubtedly places a

PRESIDENT’S MESSAGE

ANNUAL MEETING 2015


…continued

Qualification and Registration Committee Report

I am excited and thrilled to be named as Chair of the Qualificationand Registration Committee following my return to Council. I lookforward to working with all the Council members this term.

With another year of license renewals behindus, I would like to take this opportunity to re-mind everyone to sign into the RIBO member-ship system for a copy of the 2015/2016license. The license is available for download-ing or printing and easily accessible oncesigned in as these are no longer being mailedto the Principal Broker.

During the last three months we reviewed 92 requests for secondary business exemp-tions. The exemption breakdown was as

follows: 7 individuals were granted exemptionsto sell financial products and 85 individualswere granted other secondary business exemptions.

The staff, Qualification and Registration Committee and I would like to extend our best wishes to everyone for a safe and happyholiday season and all the best for the new year.

Happy Holidays and Seasons Greetings!�

TRACY MCLEANCHAIR

significant burden on us as we aim to stay

abreast of new products and determine which

clients might benefit from them.

As brokers, we discuss with our clients their

insurance needs, and we recommend

products that meet those needs. As those

needs change, perhaps through marriage,

children or relocation, we recommend appro-

priate adjustments to their insurance cover-

age. The client may or may not choose to

accept our recommendations, but that is

their choice to make. We document our files

to accurately reflect the discussions we have,

including the recommendations made and

why, as well as the instructions received.

Similarly, where an insurer offers a new product

that would be of benefit to our clients, we

determine an efficient and effective way of

letting our clients know it is available. After we

explain the benefits and costs, it is the client’s

choice whether they wish to purchase the

coverage. Once again, we document our

files accordingly.

It is the client who must decide what products

they wish to purchase. A broker can, and

should, recommend appropriate products, but

may not place any coverage without instructions

from the client. Properly documented files must

reflect your recommendations and the client’s

decisions. In any future dispute as to what

was or was not recommended/accepted,

your brokerage practices, including file docu-

mentation, will be of tremendous value.

Before I conclude my remarks, as many you

know, Jeff Bear, a key architect of RIBO, and a

man whose personal qualities and razor-sharp

intellect have shaped our self-regulatory

activities, has decided to retire. Jeff has served

the membership of RIBO for almost 32 of its

34 years. Serving initially as Legal Counsel,

Jeff succeeded Ronald Cooper as CEO in 1995.

He consistently treats the public and brokers

with respect and sensitivity. For brokers seeking

guidance and direction, his door has always

been open. He offers that same guidance and

direction to RIBO Council, ably supporting us

and serving as an invaluable resource.

Jeff has decided to step aside at the end of

2015. While all of us are sorry to see him leave,

he has surely earned his retirement and

we are grateful to have benefited from his

leadership for so long. By way of succession,

Council announced the appointment of

Patrick Ballantyne to succeed Jeff as RIBO

General Manager and CEO. Patrick has been

RIBO General Counsel since 2005. Please join

me in offering a fond farewell to Jeff and best

wishes/good luck to Patrick.


DECISIONS OF THE

DISCIPLINE COMMITTEECAUTION While the information contained below is public,

members should take caution that inappropriate useof this information may be considered to be an act of misconduct.

Kelly Ann RomphfRegistration Number: D26941Niagara Falls, Ontario

HEARING DATE: September 24, 2015

MISCONDUCT: Ont. Reg. 991, ss. 14(1)(3) and 16(4-1)

PARTICULARS OF THE COMPLAINT:Kelly Ann Romphf failed to submit premium payments of several clients for deposit to trust.She also failed to forward the homeowners application of a client to the insurance companyfor processing, resulting in a gap in coverage on the client’s home.

DISCIPLINE COMMITTEE’S DISPOSITIONKelly Ann Romphf entered a plea of not guilty. The Panel heard evidence from counsel forRIBO and from Ms. Romphf.

The Panel noted that Ms. Romphf was without Counsel, despite repeated correspondencefrom RIBO encouraging her to seek Counsel to assist her in this matter.

The Panel also noted that Counsel for RIBO, at the outset of the Hearing, asked Ms. Romphf if she was prepared to proceed without Counsel despite her right to have Counsel, and despite RIBO’s encouragement to retain Counsel. She indicated that she was prepared toproceed without Counsel.

The Panel also noted that Ms. Kelly Ann Romphf did not renew her license on or before September 30, 2014 and that RIBO accordingly de-registered her license effective September 30, 2014. The Panel retains jurisdiction to hear this matter as the events in question occurred during the time Kelly Ann Romphf was registered with RIBO.

Kelly Ann Romphf’s former employer indicated that in reviewing the accounts receivable ofthe brokerage, a particular client was shown to have premiums owing the firm for auto coverage placed on June 17, 2013. He testified that this was unusual as, in his experience,the client always paid cash. When he reviewed this with Ms. Romphf, she indicated that theclient intended to pay within a few months. After another month, Ms. Romphf’s former employer followed up. It was not until September 2013 that the money was put into the trustaccount of the brokerage. He also testified that he determined the cash ‘receipt book’showed no entry for June 17th, the day the cash was provided by the client to Ms. Romphf.

Ms. Romphf’s former employer also testified about another one of Ms. Romph’s clients, whoarranged for a homeonwer’s policy through Ms. Romphf. He testified that in December of2013 he was advised by this client that she had not received a copy of the homeowner’s policy, despite repeatedly asking Ms. Romphf for it. Upon looking into the matter, it was deter-mined that no coverage had been placed for this client and Ms. Romphf’s former employertook steps to remedy the situation. This client was without home coverage for several months.

The Panel found Ms. Romphf’s former employer to be a credible witness with a clear recollec-tion of the relevant events.

The Panel also heard and accepted the evidence and documentation proffered by the wit-ness who did not have home coverage. She further went on to testify that she had sent a faxto Ms. Romphf setting out details for new home coverage and auto renewal dated April 2,2012. The witness also testified that as of May 2012 based on discussions with Ms. Romphfshe believed that she had new coverage and cancelled her existing coverage. On numerousoccasions, she had asked for her policy documents and was told by Ms. Romphf that theywill come in the mail. The client testified that she kept following up because no monies werebeing withdrawn from her account and was told by Ms. Romphf not to worry that they were


…continued

just waiting for the paperwork. As at December 2013 the client still thought that she had coverage but had no policy documents. Eventually she got her policy documents for herauto renewal but nothing for her home insurance. The client met with Ms. Romphf’s formeremployer who advised her that Ms. Romphf no longer worked for the brokerage. He confirmedthat she had no home insurance. The client also testified that she was left for a few monthswith no home insurance coverage even though she believed that she had coverage.

The Panel found this witness to be very credible with a clear recollection of the events onwhich she testified.

The Panel also heard the evidence of Ms. Romphf who advised the Panel that, during thetime in question, she had numerous and significant personal issues that weighed heavilyupon her mind. She also testified that she had felt overwhelmed at the office where she typically worked by herself, with the occasional visit from her former employer. She testifiedthat she repeatedly asked for help. When she received the help, it was training that lastedone week and was provided by an employee from the other office of the brokerage. She indicated that she received the cash from her client who is now deceased, but that it wasmisfiled in the confusion that surrounded a physical move of her office to another location. It was only in September 2013 that she came across the money and deposited it to theclient’s account. She indicated that she was embarrassed about having misplaced themoney and so did not advise her former employer that it was missing. She denied advisingher former employer that the client would pay in September 2013. She testified as well thatwhen she went to enter the cash into the Receipt Book on June 17th, she could not find thebook but instead used a second book that is kept in the office supply cupboard.

With respect to her other client Ms. Romphf testified that she often handed homeowner policies to her former employer, the Principal Broker of the brokerage, as he had more time todo the requisite inspections. She indicated that she is almost positive that she handed theclient’s file to him. The Panel asked her why, when asked by the client where her policy was,she did not reply that she gave the file to him. The Panel also asked, given the frequent callsfrom the client, if she ever followed up on the internal system or with the insurance company,to determine if coverage was placed. She answered that she did not remember.

The Panel noted that none of Ms. Romphf’s assertions were supported by any documentary evidence or by any corroborative witnesses. Given this, and based upon her own testimony thatshe could not remember much about the matters at issue, we find her evidence unconvincing.

Based on the above, the Discipline Committee found that Kelly Ann Romphf is guilty of misconduct as alleged in the Direction. The Discipline Committee ordered:

(a) That a recommendation be made to the Qualification and Registration Committeeand that they not consider any application for registration from Kelly Ann Romphf fornot less than five (5) years from the date of this Order.

CONSENT BEING RECEIVED IN THE FOLLOWING MATTER, THE DISCIPLINE COMMITTEE MADETHE FOLLOWING ORDER:

Gordon Sowten Registration Number: R11084Perth, Ontario

HEARING DATE: October 29, 2015

MISCONDUCT: Ont. Reg. 991, s. 14(3)

PARTICULARS OF THE COMPLAINT:Mr. Gordon Sowten misinformed his client that he would not have to pay the deductible nor would hisautomobile insurance premium increase at renewal if he reported his at-fault- motor vehicle accidentto the insurance company. In August 2013 the client reported the accident and several days laterdropped his car off to be repaired at which time he was advised by Mr. Gordon Sowten that:

(a) he would not have accident forgiveness;(b) he would have to pay the deductible; and(c) his automobile insurance premium would be increased.

DISCIPLINE COMMITTEE’S DISPOSITIONThe Discipline Committee approved a consent agreement between Gordon Sowten andRIBO, and ordered:

(a) That Gordon Sowten be reprimanded for his actions.


RIBO Council Officers

NORMA HITCHLOCKPresident

TRACY MCLEANVice-President

JOHN GELSTONTreasurer

PATTY CRAWFORDSecretary

Newly Appointed Members of RIBO Council

PETER BLODGETTDarling Insurance & Realty Ltd.

MARIANNA MICHAELCanfinse Group Inc.

TRACY MCLEANMoore-McLean InsuranceGroup Ltd.

Elected to Council: Re-elected to Council:


ADDITIONS & DELETIONS FROM THE RIBO REGISTER

A D D I T I O N S D E L E T I O N SRibo No. Broker City

3856 InsuranceHero.ca SudburyO/B 9373551 Canada Inc.

3858 Wells Insurance Services Inc. Richmond Hill

3859 Falvey Cargo Underwriting, Ltd. Oakville

3863 Alta Vista Advisors Inc. Mississauga

3865 Brookstone Insurance Group Inc Oakville

3866 Bedrock Insurance Brokers Inc. Concord

3869 Redress Risk Management Inc. Edmonton

3870 Dowhaniuk Insurance Brokers Inc. Hamilton

3871 Coach Insurance Brokers Inc. Toronto

3872 Avergate Insurance Inc. Toronto

Ribo No. Broker City

254 Theo Brink Insurance Brokers Ltd. Mississauga890 Peter G. Hallman Insurance Brokers Ltd Cambridge1336 Maple Leaf Insurance Brokers Inc. Markham1476 Roy Meadows Insurance Brokers Inc. Toronto1675 Ottawa Valley Insurance Financial Services Inc. Arnprior1805 Raycroft Insurance Brokers Ltd. Belleville2462 PCC & Associates Brokers Inc. Richmond Hill2696 Omni Insurance Brokers London2820 Donohue-Kok Insurance Group Inc. Strathroy3114 Avec Insurance Managers Inc. Toronto3355 Cassells & Associates Ins & Financial Group Ltd. Hamilton3401 Starr Marine Canada Inc. Toronto3408 Gary Werechuk Insurance Brokers Inc. Mississauga3701 Litigation Risk Management Services Ltd. Ohsweken3702 Mardon Group Insurance Services Ltd. Vancouver3718 McPhee Insurance Brokers Limited London3729 Precept Insurance and Risk Management Inc. Waterloo

SEPTEMBER 1, 2015 – NOVEMBER 30, 2015

COUNCIL DIRECTORYRegistered Insurance Brokers of Ontario

PRESIDENTNorma HitchlockMarsh Insurance Limited199 Coleman StreetP.O. Box 75Belleville, ON K8N 4Z9Tel: (613) 969-7006 Fax: (613) [email protected]

VICE-PRESIDENTTracy McLeanMoore-McLean Insurance Group Ltd.48 Yonge StreetSuite 900Toronto, ON M5E 1G6Tel: (416) 364-4000Fax: (416) [email protected]

TREASURERJohn GelstonHUB International HKMB Limited595 Bay Street, Suite 900Box 81Toronto, ON M5G 2E3Tel: (416) [email protected]

SECRETARYPatty CrawfordCrawford & Danyluk Insurance Brokers Limited2681 Gideon Drive, Box 100Delaware, ON N0L 1E0Tel: (519) 652-3201Fax: (519) [email protected]

Peter BlodgettDarling Insurance & Realty Ltd.193 Aylmer StreetP.O. Box 385Peterborough, ON K9J 6Z3Tel: (705) 742-4245, ext. [email protected]

Marianna MichaelCanfinse Group Inc.5000 Dufferin StreetSuite 219Toronto, ON M3H 5T5Tel: (416) [email protected]

Scott BellAP Insurance Brokers Inc.1423 Upper OttawaStreet, Unit 11Hamilton, ON L8W 3J6Tel: (905) 389-2822 Fax: (905) [email protected]

Rex Harrison Jr.Mason Insurance Brokers Ltd.317 King StreetWelland, ON L3B 5P4Tel: (905) 788-3535Fax: (905) [email protected]

Jack LeeBFL CANADA Risk andInsurance Services Inc.181 University Avenue,Suite 1700Toronto, ON M5H 3M7Tel: (416) 599-5530Fax: (416) [email protected]

Nick Dzudz Mariette Matos

Diane ScottRob Walters

ELECTED MEMBERS

PUBLIC MEMBERS

P.O. Box 45401 Bay Street, Suite 1200Toronto, ON M5H 2Y4Tel: (416) 365-1900 • Fax: (416) 365-7664


STAFF DIRECTORYRegistered Insurance Brokers of Ontario

CHIEF EXECUTIVE OFFICERJeff [email protected]

Executive AssistantLise [email protected]

ReceptionistSheron [email protected]

ADMINISTRATION & FINANCEManagerWinston [email protected]

System AdministratorGustavo [email protected]

Registration/Data EntryValrie Bailey [email protected]

Irene [email protected]

Christopher [email protected]

AccountingErica [email protected]

COMMUNICATIONS Communications CoordinatorLise [email protected]

COMPLAINTS & INVESTIGATIONSManagerTim [email protected]

Complaints OfficerBarbara [email protected]

Senior InvestigatorsNadine [email protected]

Crystal [email protected]

InvestigatorArthur [email protected]

Legal Assistant Angela [email protected]

Financial Compliance CoordinatorDiana [email protected]

Senior Financial InvestigatorMichael [email protected]

Financial InvestigatorsDebbie [email protected]

Wendy [email protected]

CORPORATION LEGAL SERVICESGeneral Counsel Patrick Ballantyne [email protected]

Legal Assistant Angela [email protected]

QUALIFICATION & REGISTRATIONManagerVivian [email protected]

Licensing CoordinatorTracy Cullen [email protected]

Examination CoordinatorLaurie [email protected]

Administrative AssistantLloyd [email protected]

RIBO Office: (416) 365-1900 or 1-800-265-3097 Fax: (416) 365-7664P.O. Box 45, 401 Bay Street, Suite 1200, Simpson Tower, Toronto, ON M5H 2Y4

P L E A S E V I S I T O U R W E B S I T E A T W W W. R I B O . C O M

is the self-regulatory body for general insurance brokers in Ontario.

ribo bulletin - winter 2015

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