INTERIM CEASE AND DESIST ORDER by eddie5690

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									             Regarding the Insurance Act, R.S.O., 1990, c.I8, as amended,
             (“the Insurance Act”), particularly subsections 40(2) and
             393(23) and sections 438 - 441.

             And regarding a Cease and Desist Order being imposed upon
             SNC Insurance Company (Barbados) Inc. and Stop ‘N’ Cash
             1000 Inc.


                     INTERIM CEASE AND DESIST ORDER

[1]           The Superintendent of Financial Services (“the Superintendent”) is of the
opinion that SNC Insurance Company (Barbados) Inc. (“SNC”) is committing acts that
are unfair or deceptive acts or practices, namely, contravening subsection 40(2) of the
Insurance Act by carrying on business as an insurer in Ontario without a licence.

[2]          The Superintendent is also of the opinion that Stop ‘N’ Cash 1000 Inc.
(“Stop ‘N’ Cash”) is committing acts that are unfair or deceptive acts or practices,
namely, contravening subsection 393(23) of the Insurance Act by acting as an
insurance agent without a licence.

[3]           Stop ‘N’ Cash is the franchisor of a franchise system commonly known
and advertised as “Stop ‘N’ Cash”. The registered office of Stop ‘N’ Cash is
809 Victoria Street North Unit 11, Kitchener, Ontario and it advertises as operating
from 809 Victoria Street North, Kitchener, Ontario. The franchises sold by Stop ‘N’
Cash are for the business of lending money in a manner commonly known as payroll or
payday loans. The business model for the franchise system is that of Stop ‘N’ Cash.

[4]          There are approximately 53 Stop ‘N’ Cash franchise locations in Ontario.

[5]           SNC is a Barbados company incorporated under the Companies Act of
Barbados, and authorized to do business in Barbados under the Exempt Insurance Act
of Barbados. The registered office of SNC is Ernst & Young Building, Bush Hill, Bay
Street, St. Michael, Barbados.
SNC/Stop ‘N’ Cash                          -2-                              August 30, 2004
Cease & Desist Order


[6]          SNC is not authorized or otherwise licensed to conduct insurance
business in Ontario.

[7]          Key components of the Stop ‘N’ Cash business model as required of all
franchisees by the franchise agreement are:

        a) the remittance to SNC of set up fees and insurance premiums for an
           insurance product for the franchisee as insured and delivered by SNC as
           insurer, which purportedly insures Stop ‘N’ Cash and Stop ‘N’ Cash
           franchisees against losses incurred by reason of default on loans due to death
           or permanent disability of borrowers; and
        b) payment of rebates from SNC to the franchisee totalling 97% of the
           premiums paid by the franchisee.

[8]           SNC is, for the purpose of fulfilling the business model of Stop ‘N’ Cash,
controlling, operating and managing an insurance scheme directly and through Stop
‘N’ Cash in which an Ontario company is required to participate through the franchise
agreement. SNC is conducting unauthorized insurance activities in respect of an
Ontario resident as follows:
        a) soliciting for insurance contracts in Ontario through Stop ‘N’ Cash acting as
           its agent,

        b) delivering insurance contracts in Ontario either directly or through Stop ‘N’
           Cash acting as its agent,

        c) collecting premiums from an Ontario resident pursuant to the terms of the
           franchise agreement between franchisee and Stop ‘N’ Cash, directly or
           through Stop ‘N’ Cash acting as its agent; and

        d) rebating premiums to an Ontario resident pursuant to the terms of the
           franchise agreement between franchisee and Stop ‘N’ Cash directly or
           through Stop ‘N’ Cash acting as its agent.

[9]          THEREFORE the Superintendent is of the opinion that by the above acts
or conduct, SNC Insurance Company (Barbados) Inc. and Stop ‘N’ Cash 1000 Inc. are
committing acts or pursuing a course of conduct that does not comply with the
Insurance Act.

[10]         The Superintendent is of the opinion that the interests of the public may
be prejudiced or adversely affected by any delay in the issuance of a permanent order,
because SNC does not dispute that it is carrying on the business of insurance in Ontario
while unlicenced. Each day that SNC operates in Ontario while unlicenced, Stop ‘N’
Cash franchisees will be collecting loan insurance charges from borrowers for
insurance that cannot be offered in Ontario. Furthermore, attempting to make
SNC/Stop ‘N’ Cash                         -3-                               August 30, 2004
Cease & Desist Order


restitution to the public for such insurance charges would be impracticable, if not
impossible. Also, there is no evidence that SNC would have the financial resources to
make restitution of insurance charges to Ontario consumers.

[11]          THEREFORE the Superintendent orders pursuant to Section 441(2)(b)
of the Insurance Act that SNC Insurance Company (Barbados) Inc. cease from either
directly or indirectly carrying on insurance business in Ontario.

[12]         THEREFORE the Superintendent orders pursuant to Section 441(2)(b)
of the Insurance Act that Stop ‘N’ Cash 1000 Inc. cease from acting as an insurance
agent in Ontario.

[13]          TAKE NOTICE that SNC Insurance Company (Barbados) Inc. and Stop
‘N’ Cash 1000 Inc. may within fifteen (15) days of the date of this Notice make a
request in writing to the Financial Services Tribunal for a Hearing pursuant to
subsection 441(3) of the Insurance Act. The request should be directed to:

        Rhonda Booth, Registrar 

        Financial Services Commission of Ontario 

        Superintendent of Financial Services 

        14 th Floor 

        5160 Yonge Street 

        Toronto, ON M2N 6L9




DATED this 30 th day of August 2004.




                                        Bryan P. Davies
                                        CEO and Superintendent of Financial Services

TO:

SNC Insurance Company (Barbados) Inc.           Stop ‘N’ Cash 1000 Inc.
c/o Ernst & Young Building, Bush Hill           809 Victoria Street North
Bay Street, St. Michael                         Kitchener ON N2B 3C3
Barbados

								
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