FSRA expects Insurers to oversee and monitor agent and managing general agency conduct
The Financial Services Regulatory Authority of Ontario (FSRA) expects insurance agents to act ethically and requires insurers to oversee and monitor agent and managing general agency conduct to protect consumers.
FSRA reviews certain life agents’ business practices to ensure they meet high business conduct standards. This includes agents for whom FSRA receives a Life Agent Reporting Form (LARF). In a recent example, FSRA reviewed an agent’s activities in response to multiple LARFs filed by insurers. We found that the agent sold insurance policies that were terminated soon after the agent received their commission. We also found that the agent engaged in this same activity with other managing general agencies over several years, using the same pool of clients each time.
FSRA determined that the agent violated the Insurance Act (the Act). Upon being contacted by FSRA, the agent surrendered their licence. To protect consumers and the insurance industry’s reputation, in this case FSRA required that the surrender be a lifetime licence surrender.
Insurers must report unsuitable agents to FSRA. They may do so using a LARF. FSRA will take action to enforce the applicable laws and regulations where there is evidence of non-compliance with the Act.