Document background
The Terms of Business Agreement (Insurance) serves as the foundational document governing the business relationship between insurers and their distribution partners in Canada. This agreement is essential when establishing or formalizing business arrangements between insurance companies and intermediaries such as brokers, agencies, or Managing General Agents (MGAs). The TOBA encompasses crucial elements including regulatory compliance requirements, operational procedures, commission structures, and service standards, all tailored to meet Canadian federal and provincial insurance regulations. It is particularly important in the Canadian context due to the dual federal-provincial regulatory framework, where insurance is primarily regulated at the provincial level while certain aspects fall under federal jurisdiction. The agreement helps ensure clear understanding of roles, responsibilities, and expectations while maintaining compliance with applicable laws and regulations.
