Membership in the Association is highly selective. Those managing general agents admitted to the ranks of the Association must first have demonstrated high standards of excellence and experience, integrity and company representation. Membership criteria, and the AAMGA’s vetting process of all prospective members have been identified as two of the main reasons why so many domestic and international markets view the AAMGA as representing the “gold standard” in the wholesale insurance industry.
Membership in the AAMGA is broken down into five main categories:
- Active Members: Managing General Agents
- Associate Members: Domestic and international insurance companies, Lloyd’s of London Syndicates and Underwriters, and the Corporation of Lloyd’s, London Market Insurance Companies, London Market Brokers, reinsurance and retrocessional insurance companies, captive insurers, and other risk bearing entities
- Business Service Members: law firms, insurance premium financing companies, third-party administrators, document reproduction companies, information technology and automation entities, industry trade publications, and other commercial enterprises who serve the wholesale insurance market and managing general agents
- State Stamping & Surplus Lines Offices
- Honorary Members
In addition, the membership is complemented by over 300 young insurance professionals employed by the Association’s members. The Under Forty Organization (UFO) is open to any AAMGA member employee under 40 years of age. The organization provides leadership, management, business acumen, industry training, networking and other skills for the continued professional development of these young men and women. An annual meeting is also held at which the board of the organization is elected, educational sessions are held and roundtable meetings are facilitated.
The selection of the right Wholesaler by the Retailer is critical. The checklists and guide-lines in this manual provide the Retailer with helpful information when making that selection. Much of the research a Retailer should do has already been done for them if they select a Wholesaler with membership in The AAMGA, which was founded in 1926.
To qualify for membership in The AAMGA, the Wholesaler must meet the following criteria:
- Be primarily engaged as a Managing General Agent (MGA) for at least the past three years.
- Represent (with binding authority agreement), for a period of at least three consecutive years, three or more insurers, not of the same group or management, of which two are licensed (admitted) in one or more states in which the MGA operates.
- Represent those companies described in subparagraph (2) above for at least two of the major lines of insurance underwritten by those companies. The major lines underwritten by those companies must consist primarily of property, casualty, marine and/or automobile insurance.
- Have underwriting authority from those companies to bind, issue, cancel, endorse, rewrite and renew policies, in accordance with their contractual authority.
- Operate in the capacity of supervising, underwriting, processing and accounting for the production of at least a premium volume of $3 million, for the 12 months preceding the date of the application with at least 51% of its total premium volume derived from retail sub-producers not owned by the MGA.
- Subscribe to the objectives of the Association as set forth in their By-Laws and to any Code of Ethics adopted by the Executive Committee or the membership as a whole. The applicant MGA certifies it has operated in an ethical, reputable and honest manner and no officer, director, shareholder, employee or consultant has been convicted of a felony.
Code of Ethics
AMERICAN ASSOCIATION OF MANAGING GENERAL AGENTS
The principals, officers and employees of AAMGA members have certain obligations to one another, to the insurance industry, and to the communities in which business is conducted.
Our goals and obligations fall into six broad categories.
- Relationships with our sub-producers
- Relationships with insurance companies
- Legal responsibilities
- Community obligations
As AAMGA members, we must meet all financial obligations (i.e. debts owed, premiums due companies, returns due to sub-producers and insureds, etc.) on a timely basis.
As AAMGA members, we must compete fairly and honorably in the marketplace, making no false statements or misrepresentations about other AAMGA members or competitors.
Relationships With Our Sub-Producers
As AAMGA members, we must serve our sub-producers to the utmost of our ability, and in so doing must:
- Research and remain current on the financial stability of companies with which we place business.
- Encourage continuing education and training for ourselves and our staffs.
- Make no misrepresentation of what coverage is being provided.
Relationships With Insurance Companies We Represent
As AAMGA members, we will faithfully execute the underwriting guidelines of the companies we represent.
As AAMGA members, we must act in the utmost good faith and gather all data necessary to make a proper underwriting decision before putting an insurance company at risk.
As AAMGA members, we are obligated to remain current on the laws affecting insurance companies, in those states in which we have authority, advising companies to the best of our ability on statutes and practices which affect them.
As AAMGA members, we are required to observe all insurance and other applicable state and federal laws.
As AAMGA members, we will take an active part in the recognized civic, charitable and philanthropic movements which contribute to the public good of our communities.
It is a privilege, not a right, to belong to the AAMGA. Our AAMGA membership is a “badge of honor.”
We pledge to conduct ourselves in a manner befitting the privilege of membership in the American Association of Managing General Agents.