Managing General Agent (MGA) [Insurance]

Exam

No exam

Education

None

Experience

None

Background check

Required

Managing General Agents for insurance companies act under a service contract for the insurance company, to perform routine but important functions which insurer is not delegating to its employees or doing "in-house". The services can include overseeing the licensing and training of the insurer-client's marketing force (insurance agents and brokers), and payment of agent commissions to those commissioned agents of the insurer who are not salaried. It includes handling claims adjustments and premium collections for the insurer; it can include handling the negotiation and implementation of indemnity reinsurance treaties for the insurer and its reinsurers. MGA's should have their written contract with any domestic insurance company approved by the State Insurance Commissioner. Requirements: 1) Must be at least 18 years of age. 2) Must hold license as an insurance agent or agency. 3) Must be a resident of Arkansas, or nonresident from a reciprocal state. 4) Must write 5% of insurer's premium and provide one other function for the insurance such as, licensing, claim adjustment, underwriting, etc. 5) Must post $100,000 surety bond for licensure. New License fee: $1,500.00, Renewal License fee: $500.00