A Surplus Lines Broker who also has binding authority is called a ________________________.

A Surplus Lines Broker who also possesses binding authority is referred to as a Managing General Agent (MGA). This designation is crucial because MGAs operate with delegated authority from insurers, allowing them not only to sell insurance but also to bind coverage on behalf of the insurer. This means they have the power to enter into contracts and issue insurance policies directly, providing them with a level of autonomy that is typically associated with different aspects of the insurance market.

In the context of surplus lines, MGAs play a significant role by facilitating the placement of insurance for risks that standard markets cannot accommodate. Their specialized knowledge and authority enable them to quickly address unique and complex risks, making them valuable assets in the surplus lines arena.

Other roles, such as direct writers, independent agents, and captive brokers, do not possess this same kind of binding authority. Direct writers typically represent only one insurer and do not operate with the type of multiple market access that MGAs have. Independent agents sell insurance from various insurers but typically lack the authority to bind coverage. Captive brokers work for a specific company and do not have the flexibility of an MGA. Thus, the role of a Managing General Agent is distinctly defined by its binding authority in conjunction with surplus lines operations.