MGA Contract Tips
An agreement with a managing general agent should provide for the following:
The insurer has the right to non-renew any policy (subject to applicable laws).
The MGA cannot unilaterally assign any of its obligations under the agreement.
The insurer has the right to immediate termination of the agreement with transition rights.
A compensation structure for the MGA that creates an incentive for it to write quality business.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 21, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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