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NAIC Discusses Appointment of Retail Producers Who Broker Through GAs or MGAs

The NAIC Producer Licensing Working Group opened for discussion a Q&A on the subject of whether insurers must appoint retail producers who broker business through...
June 22, 2004

The NAIC Producer Licensing Working Group opened for discussion a Q&A on the subject of whether insurers must appoint retail producers who broker business through general agents (GAs) or managing general agents (MGAs). The Working Group suggested that the answer to that question is "yes." However, by the end of the meeting, the Working Group accepted the answer of no "if the producer is acting as the broker of the insured." While this change is clearly an improvement, PIA will continue to work with the Working Group to impress upon them that only the GA or MGA is acting as the agent of the insurer and that the broker should never need to be appointed in this situation.

For additional information on the NAIC meetings, contact Tim Kovac tinko@pianet.org