What responsibility may some MGAs hold that differs from typical surplus lines brokers?

Some Managing General Agents (MGAs) may handle claims for insurance contracts, which sets them apart from typical surplus lines brokers. This responsibility aligns with the broader authority that MGAs often possess, including underwriting and claims management functions, depending on their agreement with the insurer.

Unlike surplus lines brokers, who primarily focus on obtaining coverage for clients from surplus lines insurers and may not be involved in the claims process, MGAs can operate with more authority regarding policy administration. This typically includes claims handling, which can streamline processes for both the insurer and the insured by ensuring that claims are managed by professionals who are familiar with the specific policies and insured risks.

The other options—developing new insurance products, setting premium rates, and conducting market research—are not typically unique responsibilities attributed to MGAs in their role compared to surplus lines brokers. While an MGA might engage in some of these activities, especially in the development of specialized products or conducting research to inform pricing, these tasks are more general to the insurance industry and do not distinctly highlight the differences between MGAs and brokers in the context of surplus lines.