What Is BGA (Brokerage General Agency)?

Why it matters

Agents place business through a BGA to reach carriers they cannot easily contract with alone, and may get higher contract levels. The BGA keeps a spread or share, depending on the terms. Services differ, so compare support for case design, hard-to-place cases, and payout timing. A new agent should also ask how the BGA treats releases and who owns the customer record.

Source: naic.org

Related terms

Managing General Agent (MGA): An MGA, or managing general agent, is a person or firm that an insurer authorizes to manage part of its business. Model law defines it by powers such as underwriting or appointing agents.
General Agent (GA): A GA, or general agent, is an agent or agency with a contract to represent an insurer in an area and often to recruit and manage other agents. Exact duties depend on the contract.
Independent Marketing Organization (IMO): An IMO, or independent marketing organization, is a company that recruits independent agents and gives them access to carrier contracts, training, leads, and support. It is not an insurance carrier.
Commission Spread: Spread is the difference between two commission levels in a hierarchy, such as an upline's contract level minus the agent's level. The upline keeps it as an override.
Contract Level: A contract level is the percentage tier of a carrier's commission schedule that an agent is paid. A higher level means a larger share of the premium as commission.

All 241 terms

Brokerage General Agency (BGA)

Why it matters

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