There may be many more victims duped by a man who allegedly posed as an insurance agent – and brokers are being urged to remind clients of the danger that is out there.
“We’ve seen this many times,” says Steve Kee of the Insurance Bureau of Canada. “We recommend that brokers tell their clients that before they deal with any insurance agent or broker that they don’t know, check their registration with RIBO (Registered Insurance Brokers of Ontario) or with FSCO (Financial Services Commission of Ontario).”
Laurence Honickman, 41, of Richmond Hill, Ont. was arrested and charged with fraud over $5,000, laundering proceeds of crime, and failing to comply with probation.
“Pressure to cash out a life insurance policy should be seen as a red flag,” states FSCO. “When making any major financial decisions or investments, consumers should take their time and get multiple opinions – ideally from experts.”
There is a notice on the FSCO website, detailing the hearing that was conducted in June and July of last year. It states that Honickman did not attend the hearings, nor was he represented.
Police allege that Honickman, posing as an insurance agent, “presented himself to a potential client as selling policies better suited to the client's financial needs.” (continued.)
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It says they the client cashed out an existing policy and paid $21,000 to the man posing as an agent in order to purchase the new policy.
“The man absconded with the money and did not use it to purchase a policy,” it says. Police also say they believe there may be more victims.
The charges have not been proven.
Kee suggests that brokers should encourage clients to contact the IBC if they suspect insurance fraud.
“If something does not seem right to you – you can IBC TIPS at 1-877-IBC-TIPS,” he says.
