What Is MGA (Managing General Agent)? Definition

Why it matters

The NAIC Managing General Agents Act sets rules for MGAs who manage an insurer's business, including written contracts and oversight. In life insurance, people also use MGA more loosely for a group that recruits and supports agents. Which meaning applies depends on the context and the state, so ask what authority the MGA holds.

Source: naic.org

Related terms

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.
Brokerage General Agency (BGA): A BGA, or brokerage general agency, is an agency that serves independent agents by offering access to many carriers, case help, and commission arrangements. It works like a wholesale layer between agents and carriers.
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.
Field Marketing Organization (FMO): An FMO, or field marketing organization, is a company that works with carriers to build and support a network of agents. Term use varies, and many people treat it close to IMO or MGA.
Agency: An agency is a business licensed to sell insurance through its agents. It can hold carrier contracts, employ or contract with producers, and in many states needs its own entity license.

All 241 terms

Managing General Agent (MGA)

Why it matters

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