Managing General Agent (MGA)

A person or firm authorized by an insurer to transact insurance business who may have authority to bind the insurer, issue policies, appoint producers, adjust claims and provide administrative support for the types of insurance coverage pursuant to an agency agreement.

Intermediary

A third party in the design, negotiation, and administration of a reinsurance agreement. Intermediaries recommend to ceding companies the type and amount of reinsurance to be purchased and negotiate the placement of coverage with reinsurers. Also called a broker. See Brokerage Market

Fiduciary

Any person in a position of trust with regard to property of another, property held for the benefit of another or the personal custody of another. Administrators, executors, guardians and trustees are all fiduciaries.

Exclusive Agent

A captive agent, or a person who represents only one insurance company and is restricted by agreement from submitting business to any other company unless it is first rejected by the agent’s company. See Captive agent

Captive Agent

A person who represents only one insurance company and is restricted by agreement from submitting business to any other company, unless it is first rejected by the agent’s captive company. See Exclusive agent