Patterson was expelled from the LBA in October for what it calls “disreputable conduct”. But he asked the board to reconsider.
The broker told Good Returns early in November that his membership had not been revoked and it was all a misunderstanding.
However, The LBA board says it reviewed correspondence from Patterson’s legal representative at its meeting on November 24 and resolved the expulsion remain in place.
Eight insurers were advised of the original decision in October. Several said early November they were reviewing the situation with regard to Patterson’s agency with them.
But one, chief executive of Fidelity Life Milton Jennings, said even if Patterson was expelled from the LBA his agency with Fidelity was likely to remain.
“Garry’s had an agency with Fidelity for seven years and we have never had a problem with him,” Jennings said then.
“We would still continue our agency with him. He’s got more than $1 million of in force business with us.”
The insurers will receive a letter confirming Patterson’s expulsion this week.
Patterson’s expulsion comes after one of his former Queenstown clients, Julia Milley, took exception to the way he was handling a claim she had lodged for dental treatment.
Milley claimed that Patterson sold her a health policy for her and her daughter saying it also covered them for dental treatment. When she subsequently made a claim, it was disallowed with Sovereign pointing out dental treatment was never covered under the policy.
Milley eventually contacted Sovereign herself and says she was distressed to learn how the matter had been handled by Patterson.
She sought recompense from him through the Disputes Tribunal. Milley was awarded $7,509 by the Tribunal in the District Court in Alexandra in May this year.
A subsequent appeal by Patterson for a rehearing in November was declined by the tribunal and Milley says she is now optimistic of receiving the money before Christmas.
The LBA has extensive notes of the case. Christchurch broker Graeme Lindsay, who was then on the investigating subcommittee, says Patterson was given several chances to respond to the LBA committee.
When the Disputes Tribunal found for Milley, Lindsay says he was obliged to write to the LBA chairman and the ethics committee about the matter.
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