Managing General Agents

A Managing General Agent (MGA) is defined at Wyoming Statute §26-46-101(a) as any person who:

• Acts as an agent for an insurer;
• Produces, directly or indirectly,  or underwrites gross direct written premium equal to 5% of surplus as regards policyholders as reported in the last annual statement of insurer; and
• Manages all or part of the insurance business of an insurer and:
• Negotiates reinsurance on behalf of the insurer or
• Adjusts and pays claims.

Be aware that this is a specific license type.  A person or firm representing itself as a “managing general agent” may not necessarily fall under the provisions of the MGA Act.  If the individual does not perform the activities set forth above, then the individual is not an MGA and would not need to be registered as such.

• If a person acts in the capacity of an MGA with respect to risks located in this state for an insurer licensed in this state. (Typical producer licensing requirement).
• If a person acts in the capacity of an MGA representing an insurer domiciled in this state with respect to risks located outside this state. 

License Type:  Managing General Agent

Lines of Authority: Major Lines (as defined).  

Requirements:

• Pursuant to the regulation, must submit a copy of the written contract between the MGA and the insurer (Regs. Chpt. 29, Section 6(b)).

·       Must hold an appointment with same insurance company as MGA contract.

·       Provide Page 3, Line 35 of annual statement for verification of policyholder surplus.

Forms

E&O Policy: Commissioner may require the MGA to maintain an errors and omissions policy sufficient to protect the insurer.