Managing General Agent Requirments

Managing General Agent Requirements

Definition

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.

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.
All managing general agent licenses shall continue in force until expired, suspended, revoked or otherwise terminated.
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

Form AL-MGA-4, is mailed to the appointing insurer which has appointed the MGA for completion and the payment of renewal fees.
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.

Termination

Form AL-MGA-3 must be completed and mailed to the Insurance Department in order to cancel the appointment of an MGA.
The form must be signed by company officials.

Forms

August 07, 2008