Managing General Agent Appointment and Termination

Some insurers have entered into contracts with individuals or organizations, commonly referred to as managing general agents (MGAs) or managers, to manage all or part of their insurance business.

Section 33.2(c) of 11 NYCRR 33 (Insurance Regulation 120) defines an MGA as any person, firm, association, or corporation that: (1) manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office; (2) acts as an insurance agent for the insurer, whether known as an MGA, manager, or other similar term, or acts as an insurance broker; and (3) with or without the authority, either separately or together with affiliates, procures, directly or indirectly, and accepts or rejects risks on behalf of the insurer an amount of gross direct written premium equal to or more than 5% of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year, together with adjusting or paying claims in excess of $25,000 or negotiating reinsurance on behalf of the insurer.

For the purposes of Insurance Regulation 120, an insurer includes a group, association, or other organization of insurers that engage in joint underwriting or joint reinsurance in accordance with Insurance Law § 2317(a).

Section 33.3 of Insurance Regulation 120 prohibits an insurer from appointing or continuing to use the services of an MGA to act for the insurer in New York State, either directly or indirectly through subagents of the MGA, unless the MGA has an insurance agent’s license issued by the Department of Financial Services (“Department”) to represent the insurer for the appropriate kinds of insurance.

Submission Requirements

An insurer that appoints a managing general agent (MGA) to act for it in New York State, either directly or through subagents of the MGA, must complete and file a Managing General Agent Appointment Form and Biographical Questionnaire with the Department within 30 days of the appointment. 

A domestic insurer that appoints an MGA to act for it in any other state or foreign country also must, within 30 days of the appointment, complete and file the Form with the Department and complete and file a Questionnaire if the MGA does not have a New York insurance agent license. 

An insurer must file an amended MGA Appointment Form with the Department within 30 days of any change, including termination of appointment.

Forms

Submission

Completed MGA appointment forms and biographical questionnaires should be submitted via the secure DFS Portal. To access the DFS Portal you will need a Portal account.

Once your Portal account has been created, you will receive an email with a temporary password to log in. When you first log in, click on Ask for Apps to request access to the Insurance Entities Filings application, for the company(ies) you will be filing for. When this is approved, you will be able to access the Insurance Entities Filings application in the My Apps menu.

Questions

Please direct all questions regarding the form and questionnaire to [email protected].