What is a managing general agent? This question is one we are often asked by our producer-clients—typically after we advise them to remove the term "managing general agent" from their agreements with insurers. While we can spend time diving into the uses, history and evolution of managing general agents (often referred to as MGAs), this article will instead focus on what, exactly, it means to be an MGA.

Managing General Agent

General factors. The determinative factors for whether an individual or entity is an MGA can be broken down as follows:

1. Any individual or entity who manages all or part of an insurer's business (including the limited management of a division, department or underwriting office of the insurer); and