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Agency Law
- 2024 0209 – FSRA – [2023-015] – Comments – Consultation for Proposed Guidance on Life Insurance Agent & MGA Licensing Suitability — [BonkNote]
- CLHIA – Canadian Life and Health Insurance Association – Lyne Duhaime – [FSRA-2023-015] – 2024 0223 – 10p
- Reliance on Agency Law falls short:
- In practical terms, the vast majority of MGAs operate independently and support the distribution of insurance products of a variety of insurers.
- Very few insurance distribution participants have a model that approximates one in which apparent authority could possibly be found.
- FSRA’s reliance on agency law to deem a principal-agent relationship to exist “in certain circumstances” is a response suited to the distribution model contemplated by the Insurance Act of the 1990s, when insurers almost exclusively sold products through a career salesforce.
- If FSRA is looking for greater authority to regulate MGAs, which life insurers support, the proper forum to acquire that authority is in legislation.
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