Managing General Agency License-Appointment
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:
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.
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.
- Insurance Complaint Form and Guide to Resolving Problems
- Insurance Complaint Form (download to use typewriter feature, requires Acrobat Reader v7.0.9 or higher)
- Insurance Business-to-Business Complaint Guide
E. Contact Information:
October 29, 2013