What Is a Managing General Agent?

An MGA is a producer who manages a slice of an insurer's business as that insurer's agent—often a division, department, or underwriting office—not someone who merely introduces customers. The work can include producing and underwriting for that insurer.[1]

In Wisconsin, an individual MGA must already hold an active intermediary license, and a firm's designated responsible licensed producer must hold active Wisconsin MGA and intermediary licenses. Brokers, agents, producers, and managing general agents are all treated as intermediaries there. Other states may write the license differently.[1]

The MGA acts as the insurer's agent. The policy still belongs to the insurer named on it; the MGA is not a substitute issuer.[1]

Separately from a carrier financial-strength rating, AM Best may publish a Performance Assessment for delegated underwriting authority enterprises, including MGAs. That assessment is not a credit rating and does not address creditworthiness.[2]

Name the MGA's legal entity, the insurer that delegated the authority, any producer or MGA license, and the company actually named on the policy.[1]