Susan Heathwood, of Randwick in New South Wales, has been given a suspended sentence of 19 months and 22 months imprisonment and has entered a good behaviour bond of $1,000.
ASIC found that between August 2009 and May 2011 Ms Heathwood collected $380,000 in commissions from 65 falsified insurance applications.
The investigation by ASIC also found that Ms Heathwood collected total commissions of $380,897.22 from policies generated from the false insurance applications.
A total of $326,207.59 was retrieved by the insurance companies in the form of writebacks.
Ms Heathwood also made premium payments for a number of the policies that totalled $49,275.22 in an attempt to hide the conduct.
In June, Ms Heathwood pleaded guilty in the Downing Centre Local Court to two counts of dishonest conduct.
The matter was adjourned to 6 July in the Downing Centre District Court for sentencing and Ms Heathwood was granted conditional bail.
At the time of the dishonest conduct, she was an authorised representative of Guardian Financial Planning and an employee of Jalee Consulting Group. She provided financial advice and arranged life insurance.
In February, ASIC permanently banned her from providing financial services following an investigation into the conduct.
The first offence carries a maximum penalty of five years' imprisonment or a $22,000 fine, or both. The second offence carries a maximum penalty of 10 years' imprisonment or a $450,000 fine, or both.
The information that was falsified related to personal information about applicants who never asked for insurance to be arranged on their behalf.
The address of each applicant was Ms Heathwood's own post office box and any telephone number appearing in an application was her mobile number or the former mobile number of her son and her daughter.
