Managing General Agent Requirements
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Definition
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| An individual, firm or business entity appointed
as an independent contractor by one or more insurers for the principal purpose
of exercising general supervision over the business of the insurer in Alabama,
with authority to appoint producers for such insurers and to terminate such
appointments. The authority of a managing general agent shall not include
countersignature privileges. A managing general agent shall otherwise qualify
and be licensed as such as provided in the code, but shall not be required to
take and pass an examination nor be a resident of Alabama. A managing general
agent must be licensed for each insurer represented and for each class of
insurance handled by the insurer in this state.
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| The license of a managing general agent shall
state the name and address of licensee, the name of the insurer (company) to be
so represented, date of issue and of expiration and the general conditions of
the license. Licensees must have a separate appointment for each insurer. The
total application fee is $155.00, representing an an application fee of $30.00,
and a fee of $125.00 for the initial license per insurer.
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| Companies informed by NIPR or their
licensing counterpart of a three to eight week delay in setting up to process
appointments online are allowed to download below the appointment form to
process appointments for MGAs. Please note the entire license and
appointment fee will be paid during the appointment process. |
| Companies who do not want to do the programming
themselves can utilize one of the NIPR Authorized Business Partners to handle
the programming.
Contact any Authorized Business Partner
directly to determine their pricing. |
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All managing general agent licenses shall continue in force until expired,
suspended, revoked or otherwise terminated.
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| Payment of $75.00 annually on or before December
31, accompanied by a written request for continuation signed by the insurer,
may renew a MGA's license. |
MGA Renewal Process
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Form AL-MGA-4, is mailed to the appointing insurer which has appointed the MGA
for completion and the payment of renewal fees.
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The form and fees must be received by December 31st for renewal to occur. If
the MGA is not renewed by December 31st, the license and appointment expires
and a new application must be filed for the MGA to be relicensed.
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Termination
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Form AL-MGA-3 must be completed and mailed to the Insurance Department in order
to cancel the appointment of an MGA.
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The form must be signed by company officials.
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Forms
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