Twelve life insurance brokers in Surrey, B.C., nearly all of them Indo-Canadian according to our sources, have all been barred from selling insurance after the provincial regulator found they’d cheated on their qualification tests.
SURREY – A dozen life insurance agents, nearly all of them Indo-Canadian according to our sources, who worked together at the same brokerage in Surrey have lost their licences because they all conspired to cheat on their qualification tests, according to the provincial regulator.
The Insurance Council of B.C. said it’s a “very unusual … level of cheating” that was unseen anywhere else in the country after a national audit — one that left the board with no choice but to cancel the agents’ licences, reported CBC News.
The 12 agents wrote their LLQP tests to earn their licences between October 2016 and June 2017. All of them worked at a World Financial Group (WFG) branch in Surrey.
Anyone who wants to become a life insurance agent in Canada needs to pass the LLQP — Life License Qualification Program — exam to prove they have basic knowledge to sell life insurance.
Last fall, a third party ran a national audit to check for fishy patterns on tests results from across the country that could point to cheating.
Nearly two dozen red flags popped up in B.C. — there was an “odd” group of multiple-choice exams with answers, both right and wrong, that were nearly identical to one another.
The provincial board immediately suspended 21 brokers licences after their exams were flagged. The council found they all came from the same brokerage and appeared to have used the same answer keys.
Life insurance policies sold by cheating brokers are still valid. Liability would fall to the World Financial Group, as the agency would’ve approved the packages when they were sold.
After the investigations, the council moved to cancel 19 of those certificates. Twelve have accepted that ruling and seven have filed appeals. Two are still pending.
The executive director said the cheating is “frustrating” for regulators and fellow agents, and has prompted the board to bolster exam security: phones will be placed at the front of the exam room, security cameras will be running, and extra supervisors will be on hand in the future.
As for life insurance policies sold by the agents, Sinclair said they’re still valid. Liability would fall to the World Financial Group as it would’ve approved the packages when they were sold.
The twelve brokers “provided no explanation” for the collusion and cheating when contacted for the investigation, according to their cancellation notices.
They accept the council’s move to cancel their licences by default by failing to appeal for a hearing within two weeks of the ruling.
