A managing general agents license is required for any person or entity who:
- has supervisory responsibility for the local agency and field operations of an insurance company, or
- is authorized by an insurance company to accept or process on its behalf insurance policies produced and sold by other agents.
MGA License Not Required
The license is not required if the person or entity maintains a surplus lines agents license, general lines property and casualty agents license, or a risk managers license, unless the premium volume produced or sold by other agents is the lesser of:
- 50% or more of its total annual business, or
- more than $500,000 annually.
Duties of an MGA
A managing general agent may perform any of the following acts for an insurance company:
- receive and pass upon daily reports and monthly accounts;
- receive and be responsible for agency balances;
- handle the adjustment of losses; or,
- appoint or direct agents.
MGAs are not permitted to deal with the insuring public.