managing general agent (MGA)
A specialized type of insurance agent/broker that, unlike traditional
agents/brokers, is vested with underwriting authority from an insurer.
Accordingly, MGAs perform certain functions ordinarily handled only
by insurers, such as binding coverage, underwriting and pricing,
appointing retail agents within a particular area, and settling
Typically, MGAs are involved with unusual lines of coverage,
such as professional liability and surplus lines of insurance, in
which specialized expertise is required to underwrite the policies.
However, MGAs also write some personal lines business, especially
in geographically isolated areas (e.g., western Oklahoma, North
Dakota) where insurers do not want to set up a branch office.
benefit insurers because the expertise they possess is not always
available within the insurer's home or regional offices and would
be more expensive to develop on an in-house basis.
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XV.C; TRR 5/2001