In the 1930s, very little regulation existed, resulting in suspect business practices, charlatans engaged in underwriting and claims, and there were woeful financial controls. With each state overseeing its own regulation, there was little uniformity or oversight, and insurance companies grew to control the markets. The main theme of the Supreme Court ruling was that the Sherman Antitrust Act did apply to the insurance industry. The South-Eastern case illustrates not only the egregious business practices in place at that time, but also how far the insurance industry has come.
A few years ago, with the passage of the Affordable Care Act, Congress revisited that old legislation, essentially overturning aspects of McCarran-Ferguson and removing antitrust requirements from health insurance companies, thereby enabling them to participate in health insurance exchanges.
Carriers view the onboarding process as the beginning of compliance, which is an ongoing process as new appointments are made, continuing education is completed, licenses are renewed, and soon. While it may seem that this aspect of compliance is necessary but not all that important, consider that of all the fines levied by insurance regulators in a given year, most will be due to issues with agent licensing