Which of the following statements about managing general agents is (are)true?
I.Managing general agents have become more important in insurance distribution over the past 20 years.
II.Managing general agents are vested with underwriting authority from an insurer.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is true as managing general agents (MGAs) have become more important in insurance distribution due to their expertise in underwriting, marketing, and distribution. They offer specialized knowledge and assistance to support insurance carriers in reaching new markets and staying competitive.
Statement II is also true as MGAs are typically delegated by insurance companies to manage their underwriting and pricing functions, as well as distribution and marketing in a specific geographic area or line of business. This allows for quicker decision-making and more efficient operations than if the insurance company had to handle everything in-house.

Which of the Following Statements About Managing General Agents Is