Question

All of the following are duties of a Managing General Agent EXCEPT

1. delivering policies to the insured.
2. accepting or declining risk of applicants.
3. appointing, supervising and terminating agents within the territory.
4. collecting premiums from brokers and agents and remitting them to the insurer.

Answer 1

The duty not typically associated with a Managing General Agent is collecting premiums from brokers and agents; premium collection is generally managed by the agents or the insurance company's own billing department.

Step-by-step explanation:

The duties of a Managing General Agent (MGA) typically include a number of important roles within the insurance industry. However, one of the options listed is not a standard duty of an MGA. Looking at the choices:

• Delivering policies to the insured.
• Accepting or declining the risk of applicants.
• Appointing, supervising, and terminating agents within the territory.
• Collecting premiums from brokers and agents and remitting them to the insurer.

The duty that is not typically associated with a Managing General Agent is collecting premiums from brokers and agents. While MGAs may handle underwriting and commission payments, collecting premiums is generally handled by the agents or brokers directly or by the insurance company's billing department.