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LLQP (Life Licence Qualification Program) Practice Exam · Question

In the Canadian insurance industry, what is a 'Managing General Agent' (MGA)?

The MGA (Managing General Agent) acts as an intermediary, providing administrative support, compliance overwatch, and training to independent agents, rather tha

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Question: In the Canadian insurance industry, what is a 'Managing General Agent' (MGA)?

Answer options: ✅ An intermediary between the insurance agent and the insurance company.

  • A government regulatory body that issues licences.
  • A client who manages their own insurance portfolio.
  • The head office of a captive insurance agency.

Correct answer: An intermediary between the insurance agent and the insurance company.

Explanation: The MGA (Managing General Agent) acts as an intermediary, providing administrative support, compliance overwatch, and training to independent agents, rather than the agent working directly for one single insurer.

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