Managing General Agent

Idaho Statutes, Title 41: Chapter 15

IDAPA 18.06.05

Managing general agent (MGA): Any person, firm, association or corporation who negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer

Insurer: Any person, firm, association or corporation duly licensed in this state as an insurance company pursuant to and acting consistent with the definitions provided in sections 41-103 and 41-112, Idaho Code.

MGA’s must:

• Hold a separate, active Property and Casualty Producer license in Idaho.
• Have and maintain a SURETY bond in the amount of $5,000 or 10% of the total funds handled in the preceding year, whichever is greater.
• Provide proof of an Errors and Omissions policy with a limit of $250,000 or 25% of the gross amount of direct written premiums received by an insurer for the previous year that are attributable to you as their MGA, whichever is greater.
• Provide a list of the names and addresses of all insurers doing business in the State of Idaho or Idaho domestic insurers with which you have a contract to act as their MGA.
• Provide a verified statement on the DOI form that these MGA contracts contain provisions required by §41-1504 of Idaho Code.

To apply for an MGA license please follow the guide below.

Step One: Hold an active Property and Casualty Producer license in Idaho

Step Two: Have and maintain a SURETY bond in the amount of $5,000 or 10% of the total funds handled in the preceding year, whichever is greater

Step Three:  Compile the application packet. This packet must contain:

• Completed MGA Licensing Packet.
• Proof of an Errors and Omissions policy with a limit of $250,000 or 25% of the gross amount of direct written premiums received by an insurer for the previous year that are attributable to you as their MGA, whichever is greater.
• A list of the names and addresses of all insurers doing business in the State of Idaho or Idaho domestic insurers with which you have a contract to act as their MGA.
• A verified statement on the DOI form that these MGA contracts contain provisions required by §41-1504 of Idaho Code.
• The non-refundable application fee of $80. Checks should be made payable to the Idaho Department of Insurance.

Step Four: Mail the completed packer to:

Idaho Department of Insurance
700 W State Street, 3rd Floor
PO Box 83720

The licensing period for MGA’s is from July 1- June 30^th.  All MGA licenses expire at midnight on June 30th of every year.

• MGA renewals must be done by paper.  You can download a form here: MGA Renewal Form
• If renewing prior on or prior to June 30^th, the fee is $80.  If renewing on or after July 1^st, the fee is $160.
• The Department of Insurance considers the renewal of the licenses solely the responsibility of the licensee. No reminder from the Department is needed or guaranteed concerning the renewal period.
• The Department considers the renewal of your license to be your responsibility, regardless of whether you receive notice or not.
• Additional information regarding renewals:
  • You must report the previous year’s amount of claims handled or premiums collected for Idaho. This is for purposes of insuring that the bond in place is adequate per Title 41, Idaho Code, Section § 41-1503 (3). The MGA bond amount should reflect a minimum of 10% of combined claims handled/premiums collected over the previous calendar year. Minimum bond is $5,000. No maximum has been set. An adjustment can be made at time of renewal by sending a bond rider or new bond (Department must have the original bond/rider.)
  • You must report any new agreements with authorized insurers pursuant to Idaho Code §41-1505, a list of new agreements may be reported in the following format:
• Name of authorized insurer
• Date of agreement
• Confirmation the agreement is in compliance with the provisions in Title 41, Chapter 1.
• A copy of the agreement is not required, unless specifically requested by the Department.
• If you have had a change of officers, please send an updated list that includes name and title only.

Please contact the Department, 208-334-4250, and ask for Producer Licensing if you need to make special arrangements.

     All Producers and Agencies have a duty to report any criminal or administrative actions to the Idaho Department of Insurance within 30 days per §41-5819

    The Department encourages producers to use the NIPR Reporting of Actions Warehouse at www.nipr.com as a convenient means to post their documents and explanations to report to any state in which they are licensed.

MGA Licensing Packet

MGA Bond Form

MGA Renewal/Reinstatement Form

Business Entity Name Change

Change of Officers Form