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.