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MGA Academy

The delegated-authority stack

This is the load-bearing sequence that turns “a licensed producer” into “an MGA that can underwrite.” Each layer is a prerequisite for the next — you cannot skip ahead. STABLE

The stack, bottom to top

Section titled “The stack, bottom to top”
6. BIND risk-select · rate · bind · issue · (sometimes adjust) ← only now can you write business 5. UNDERWRITING GUIDELINES appetite · limits · pricing · referral triggers what you may bind, and when to refer up 4. BINDING-AUTHORITY / PROGRAM AGREEMENT carrier delegates underwriting authority in writing the written contract that grants the pen 3. CAPACITY / FRONTING CARRIER an insurer willing to back the program (+ reinsurance) whose paper backs the risk 2. CARRIER APPOINTMENT filed with the DOI carrier authorizes the producer to act 1. LICENSES individual (DRLP) + entity, in the right line (Casualty) the legal floor

Layer by layer

Section titled “Layer by layer”
  1. Licenses. The individual (five-step path) and the entity (entity licensing), both in the Casualty line, in every in-scope state. Joe is the DRLP. STABLE
  2. Carrier appointment. A carrier formally authorizes the producer to act for it, filed with the state — see 05 Appointment. STABLE
  3. Capacity / fronting carrier. A new program needs an insurer willing to back the Tech E&O risk with paper, usually with reinsurance supplying the capital behind it — see 04 Reinsurance & capacity. STABLE
  4. Binding-authority / program agreement. The written contract in which the carrier delegates underwriting authority. For an MGA, this is where “sell our policies” becomes “bind risk on our behalf.” Many states require this contract to meet statutory standards (MGA Act). STABLE
  5. Underwriting guidelines. The rulebook the MGA must underwrite within — risk appetite, eligible classes, limits, pricing, and the referral triggers that send unusual risks back to the carrier for sign-off. This is where Glacis’s evidence/telemetry feeds risk selection and schedule-rating credits — see 02 Rating & pricing. STABLE
  6. Bind. Only after layers 1–5 exist can the MGA actually bind coverage, issue policies, and (if delegated) adjust claims. STABLE

The cardinal rule

Section titled “The cardinal rule”

No binding can happen until (a) the producer/entity is licensed in the relevant lines AND (b) the carrier has appointed the producer and granted authority. STABLE

Everything below the “bind” layer is plumbing you must build first. This is why the academy spends so long on licensing: it’s the bottom of a tall stack.

The surplus-lines fork

Section titled “The surplus-lines fork”

A novel AI/healthcare Tech E&O risk often can’t be written in the admitted market (admitted carriers won’t file rates/forms for an unproven exposure). When that happens, the program runs on non-admitted / surplus-lines (E&S) paper — which adds a Surplus Lines Broker license and extra duties to the stack. See 06 Surplus lines / E&S. GROUNDED · Westmont

How it maps to Glacis

Section titled “How it maps to Glacis”

The whole stack is the on-ramp to “Glacis with underwriting capability.” Walk the strategic version of this on the 02 on-ramp / critical path page.

Next

Section titled “Next”

→ 06 Surplus lines / E&S

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