BridgeForce Compliance News October 12, 2022
In this issue:
- FSRA takes action to ensure those in the Life and Health Insurance Sector treat consumers fairly
FSRA takes action to ensure those in the Life and Health Insurance Sector treat consumers fairly
FSRA led a review of a few MGAs that appeared to have similar business models. These MGAs use a tiered-recruitment business model (may also be referred to as a multi-level-marketing, network-marketing, recruitment-focused, or tiered-level model). They focus on recruitment and actively encourage their agents to recruit new individuals to the business. The agents are paid not only for their own insurance sales, but also for those made by people that agents recruit, and so on. This results in MGAs paying multiple layers of agents for one insurance sale.
This tiered-recruitment business model is not standard practice in L&H MGAs and is not the model of BridgeForce.
The review did expose gaps in the oversight of advisors for which the regulator reiterates continues to be the insurer’s ultimate responsibility. But we as intermediaries play a part in ensuring positive outcomes for consumers.
FSRA also highlights several best practices related to advisors delivering on FTC (Fair Treatment of Consumers). If you haven’t reviewed those in the last 12 months, this is a good opportunity to do that.
More information: