Hello Everyone,
There are so many MGA(s) out there and they all have different programs. I would like to learn more about the MGA you are using.
1. What are some of the pros and cons of the MGA?
2. What made you choose the MGA that you have now over the others?
3. What are the costs involved in signing up with an MGA?
Thank you so much,
Johnny
Any suggestion for an MGA in California?
Moderators: Josh, independent guy
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LadyBroker
- Insurance Journal Addict
- Posts: 366
- Joined: Fri Oct 13, 2006 9:10 pm
- Location: Southern California
Re: Any suggestion for an MGA in California?
Hey there, Johnny,
I am a broker at an MGA/wholesale broker, and thought I'd respond to your post.
Typically our client comes to us because the Preferred marketplace cannot underwrite their risk due to Losses, Class (think New Residential COnstruction or Medical Devices) or Underwriting Guidelines (the risk is new in business, or has no prior coverage).
My brokerage has no sort of fees that you pay to us, and I would be careful about sign-up costs with any firm. Be sure you will get your money's worth. Usually we pay you 10% of the pure premium as commission, and you are always free to add a Broker Fee if you deem it appropriate.
I like to think that my clients come to me for my market knowledge, and my excellent service. You should demand no less from your wholesaler; remember, this is a part of the market that isn't required to use ISO forms, so every policy form can be, and is often, different in it's exclusions and endorsements. You need a broker who is knowledgable and accessible.
If you'd like to talk more in depth, PM me.
And have a wonderful day.
I am a broker at an MGA/wholesale broker, and thought I'd respond to your post.
Typically our client comes to us because the Preferred marketplace cannot underwrite their risk due to Losses, Class (think New Residential COnstruction or Medical Devices) or Underwriting Guidelines (the risk is new in business, or has no prior coverage).
My brokerage has no sort of fees that you pay to us, and I would be careful about sign-up costs with any firm. Be sure you will get your money's worth. Usually we pay you 10% of the pure premium as commission, and you are always free to add a Broker Fee if you deem it appropriate.
I like to think that my clients come to me for my market knowledge, and my excellent service. You should demand no less from your wholesaler; remember, this is a part of the market that isn't required to use ISO forms, so every policy form can be, and is often, different in it's exclusions and endorsements. You need a broker who is knowledgable and accessible.
If you'd like to talk more in depth, PM me.
And have a wonderful day.
"It's a typical day, on the road to Utopia.."
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mccluney
- Insurance Journal Addict
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- Joined: Mon Nov 15, 2004 4:01 pm
- Location: Hayward, CA
- Contact:
Re: Any suggestion for an MGA in California?
Lady Broker seems like one of the good ones. Here is what you need to be careful about. When you submit an application, the application is nothing more than a wish list of coverages you would like to offer your client. The MGA/Surplus lines broker
will quote or submit to their carriers, and they will offer a quote that frequently will be different than "your wish list" You need to carefully review the coverages being offered. The financial strength of the insurance company and know the difference between using an "admitted" market and a "non-admitted" market and when its appropriate to use the non-admitted market. You will need to sign a contract with the MGA or Surplus lines broker. You normally are responsible for earned premium on the request you make to bind coverage. You may be held responsible for earned premium on a company audit. Most of these policies will not offer direct client payment terms and will usually be subject to a 25% earned minimum premium in the event of cancellation. I would also ask the surplus lines/MGA for a certificate indicating that they have Errors and Ommissions insurance. I would also talk to other agents and ask for who they have used and what kind of service can you expect. Make sure that the company that you offer your client has the necessary financial rating that would be covered under your E & O insurance policy. There is more items but these will get you started in the right direction.
will quote or submit to their carriers, and they will offer a quote that frequently will be different than "your wish list" You need to carefully review the coverages being offered. The financial strength of the insurance company and know the difference between using an "admitted" market and a "non-admitted" market and when its appropriate to use the non-admitted market. You will need to sign a contract with the MGA or Surplus lines broker. You normally are responsible for earned premium on the request you make to bind coverage. You may be held responsible for earned premium on a company audit. Most of these policies will not offer direct client payment terms and will usually be subject to a 25% earned minimum premium in the event of cancellation. I would also ask the surplus lines/MGA for a certificate indicating that they have Errors and Ommissions insurance. I would also talk to other agents and ask for who they have used and what kind of service can you expect. Make sure that the company that you offer your client has the necessary financial rating that would be covered under your E & O insurance policy. There is more items but these will get you started in the right direction.
Re: Any suggestion for an MGA in California?
Make sure that the insurer is "admitted" or "approved" by the department of insurance for the state wherein the risk is located.
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LadyBroker
- Insurance Journal Addict
- Posts: 366
- Joined: Fri Oct 13, 2006 9:10 pm
- Location: Southern California
Re: Any suggestion for an MGA in California?
Hello again,
Most MGA's will not offer you coveage on Admitted paper; we typically are the Non Admitted markets. I think what the other poster meant to say was to be sure the carrier is on the LESLI list -- meaning they are licensed to transact business in California, but not Admitted. It's a subtle difference, but important. MOst MGA"s do not offer carriers who are not at least A-7 rated (Golden Bear being the usual exception) and carriers that are on the LESLI list.
Most MGA's will not offer you coveage on Admitted paper; we typically are the Non Admitted markets. I think what the other poster meant to say was to be sure the carrier is on the LESLI list -- meaning they are licensed to transact business in California, but not Admitted. It's a subtle difference, but important. MOst MGA"s do not offer carriers who are not at least A-7 rated (Golden Bear being the usual exception) and carriers that are on the LESLI list.
"It's a typical day, on the road to Utopia.."
Re: Any suggestion for an MGA in California?
PM sent.
LadyBroker wrote:Hey there, Johnny,
I am a broker at an MGA/wholesale broker, and thought I'd respond to your post.
Typically our client comes to us because the Preferred marketplace cannot underwrite their risk due to Losses, Class (think New Residential COnstruction or Medical Devices) or Underwriting Guidelines (the risk is new in business, or has no prior coverage).
My brokerage has no sort of fees that you pay to us, and I would be careful about sign-up costs with any firm. Be sure you will get your money's worth. Usually we pay you 10% of the pure premium as commission, and you are always free to add a Broker Fee if you deem it appropriate.
I like to think that my clients come to me for my market knowledge, and my excellent service. You should demand no less from your wholesaler; remember, this is a part of the market that isn't required to use ISO forms, so every policy form can be, and is often, different in it's exclusions and endorsements. You need a broker who is knowledgable and accessible.
If you'd like to talk more in depth, PM me.
And have a wonderful day.