RECO update on iPro insurance process

Consumer deposit claims

We can confirm that eligible consumer deposit claims that have been submitted to ClaimsPro under the professional liability insurance program administered by RECO have begun to be paid. A payment will not be made until monies are due to be disbursed, for example, when a transaction closes.
 
To assist consumers in completing their consumer deposit claim forms, the insurance program broker has prepared a short instructional video. Click here for more.

Registrant commission claims

We want to directly address the confusion and frustration many of you are experiencing following iPro’s shutdown and the freeze of its accounts to safeguard the remaining funds.

There are a few important items to clarify:

1. Some agents have been told that payments can be obtained directly from RECO. This is not correct. The accounts have been frozen to prevent further losses and to enable the necessary investigation and future recovery of funds. This means registrants with outstanding commissions are not able to be paid from that account.
   
   The professional liability insurance program administered by RECO includes commission protection insurance to address this issue. This is why registrants are required to submit commission protection claim forms to initiate the process of recovering outstanding commission payments.
   
   The insurer and claims adjuster are currently receiving commission protection claim forms and are assessing the full scope of the commissions that are owed to registrants affected by the iPro situation. Until this assessment is complete, commission claims cannot be paid. We are encouraging all registrants who are eligible for this coverage to submit their claim forms as soon as they can to assist in this process.
   
   Payments are therefore part of the insurance claims process. RECO is not the insurer and does not handle claims.


2. Some agents have been told that there are sufficient funds in iPro’s accounts to cover the commissions owed by the brokerage. This is not correct. There is a financial shortfall, which is being investigated by the insurer to confirm that total commission claims payments will not exceed the policy limit. At this time, neither RECO nor the insurer can confirm whether the amount of funds is sufficient.


3. Some agents have been told that early claims would be paid out first. This is not correct. Claims are not paid based on the order in which they were submitted. Claim payment timing will depend on a number of factors, including fulsome documentation of the claim, commissions being due and payable, and confirmation of total claims anticipated.

What is happening

The insurer is conducting their investigation process and is working tirelessly to expedite the claims process. The insurance program is exploring all avenues to try to pay out commission claims as quickly as possible. Please ensure your claims are filed promptly and completely to the best of your ability to facilitate the claims process.
 
We want to be clear: this situation is not the fault of agents. You have been put in an extremely difficult position by iPro’s misconduct. RECO’s focus is on safeguarding your interests and your clients’ interests as this matter is resolved.

What affected agents can do

RECO and the insurer are urging all agents affected by the iPro matter to submit all of your commission claim forms as soon as you are able to do so.

It is a key step for the insurer to have received all claims forms. To this end, we encourage you to file your claims forms swiftly.

Next steps and support

• File a claim form as soon as possible. All claims must go through ClaimsPro; RECO cannot issue payments directly.
• Claims processing: In order to process a claim, a claim form must be filed. Claims will not be paid before commissions are actually earned; for clarity, that means after a transaction has closed. They are not paid in the order of claim submission.
• Support: Please fill the form out to the best of your ability. You can be assured that ClaimsPro will be in touch if they need additional information. If you still need assistance completing a claim form, please contact ClaimsPro directly at claims@reco-claims.ca. Please make best efforts to include all relevant documentation as this will also assist with the claim review process.
• For other questions, RECO has established a dedicated email: iproquestions@reco.on.ca.