What Is NMO (National Marketing Organization)?

Why it matters

An NMO may offer top contract levels, technology, and back-office help that smaller groups pass down. A larger group can mean more carriers and tools, but also more layers of splits. Terms for these labels are not set by law, so ask each group for its own definition and a written compensation schedule.

Source: naic.org

Related terms

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.
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.
Hierarchy: A hierarchy is the chain of contracts that links an agent up through agencies or marketing organizations to a carrier. It decides who earns what from each sale.
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

National Marketing Organization (NMO)

Why it matters

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