Glossary
Managing General Agent
An intermediary granted underwriting authority by a carrier, able to bind coverage and often to handle claims on the carrier's behalf.
An MGA acts with delegated authority: it can underwrite and bind within agreed limits, effectively functioning as the carrier for the classes it manages. Retail agencies access certain markets only through MGAs.
MGAs sit between the retail agency and the carrier in the commission chain, which means the agency's statement comes from the MGA rather than the carrier and reflects the MGA's own accounting. Reconciling that layer adds a step and, often, a delay.
See also
- Wholesale Broker — An intermediary that places business with carriers on behalf of retail agencies, typically for risks the retail agency's…
- Surplus Lines — Coverage placed with an insurer not licensed in the insured's state, permitted when admitted carriers decline the risk.
- Override Commission — Extra commission paid above the base rate, often to a general agent, aggregator, or agency principal on business produce…