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The Office of Financial and Insurance
Regulation issues
A. NAME OF PERMIT OR APPROVAL:
Managing General Agency Appointment
B. STATUTORY AUTHORITY:
PA 218 of 1956 The Insurance Code of 1956
C. APPLICABLE REGULATION:
The Insurance Code of 1956 - Chapter 14
D. SUMMARY OF PERMIT/APPROVAL PROCESS:
1.
Applicability (activities that require the permit)
According to the Insurance Code of 1956, MCL 500.1401(b), the Managing
General Agent (MGA) is defined as a person (individual or corporation) who:
- Negotiates and binds ceding
reinsurance contracts on behalf of an insurer or manages all or part of
the insurance business of an insurer, including the management of a
separate division, department, or underwriting office.
- Acts as an agent for such
insurer whether known as a managing general agent or other similar term,
who, with or without the authority, either separately or together with
affiliates, produces, directly or indirectly, and underwrites an amount of
gross direct written premium of not less than 5% of the policyholder
surplus as reported in the last annual statement of the insurer in any 1
quarter or year and adjusts or pays claims in excess of an amount
determined by the commissioner or negotiates reinsurance on behalf of the
insurer.
NOTE: As of January 20, 2000, the Commissioner has not set an amount.
2.
Pre-Application Requirements
If the agency is an MGA, it must be licensed as a producer.
3.
Application Submission Requirements
To appoint an agency as an MGA:
- Submit the form FIS
0242 MGA Agency Appointment/Cancellation. The producer/agency must
be appointed by the company for the same qualification as the
producer/agent. The producer/agency appointment must be made
electronically prior to the MGA appointment.
- Submit the company/MGA
agreement/contract.
NOTE: More than one company may appoint the same producer/agent and/or
agency to be their MGA.
4.
Procedures and Time-Frame for Obtaining Permit or Approval
5.
Operational Requirements
Once You Are Appointed
Cancellation is by submission of an FIS
0242 and/or FIS 0243.
6.
Fees
7.
Appeal Process
8.
Public Input Opportunities
We encourage consumers to first attempt to resolve disputes directly with
their financial service entity. If a resolution cannot be reached, our office
can try to help resolve a dispute. A complaint form must be completed for for the type of financial service you are having difficulty
with.
E. Contact Information:
Contact
Us
Creation/Revision Date:
October
6, 2010
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