How to Become an MGA

[TimSmith]

I have a small company and want to become MGA. Can someone please point us, how to become an MGA? Does the MGA license need to be registered by state or it can be used in most of the state.

 

[Newby]

I have a small company and want to become MGA. Can someone please point us, how to become an MGA? Does the MGA license need to be registered by state or it can be used in most of the state.

You don't need to even license to be an MGA. You can put agents under you and get some production going to earn MGA contracts from the companies.

If you CHOOSE to license your agency separately, yes you will need to license it with the state you are in and states you sell in.

 

[Lifehlth2005]

You don't need to even license to be an MGA. You can put agents under you and get some production going to earn MGA contracts from the companies.

If you CHOOSE to license your agency separately, yes you will need to license it with the state you are in and states you sell in.

Yes, you don't have to but you should definitely set up a corp. ever hear of the saying, "separate church from state"? There are certain risks involved with having a downline and just in case sh*t hits the fan or you end up recruiting some not so ethical agents, you should definitely consider it. I'm not an attorney or anything but I've been in this business for over 10 years now and have seen many people come and go. Good luck.

 

[Newby]

Yes, you don't have to but you should definitely set up a corp. ever hear of the saying, "separate church from state"? There are certain risks involved with having a downline and just in case sh*t hits the fan or you end up recruiting some not so ethical agents, you should definitely consider it. I'm not an attorney or anything but I've been in this business for over 10 years now and have seen many people come and go. Good luck.

I agree with you on the should. Just know of several fairly sizable ones that didn't.

 

[agentinsouth]

I have a small company and want to become MGA. Can someone please point us, how to become an MGA? Does the MGA license need to be registered by state or it can be used in most of the state.

You have to purchase a different type of E&O policy.

 

[MariannaWeiner1]

The managing general agent is entrusted by insurance companies to underwrite and issue policies for regular retail insurance agencies. Today, this authority is typically granted only to those agencies with an expertise in the excess lines markets, meaning "specialty" coverages outside the scope of typical business policies. Such coverage might include unusual products liability exposures, very high limits of liability coverage, or coverages which most insurance companies will not provide.