Key Service Areas

• Agency/agent licensing
• Agent misconduct and negligence disputes
• Claims disputes
• Commission disputes
• Employment matters
• Insurance e-commerce
• Insurer rehabilitation and liquidation
• Intellectual property
• Joint ventures and strategic alliances
• Leasing and real property matters
• Litigation and arbitration
• Mergers and acquisition
• Negotiation and drafting of carrier MGA and producer contracts
• Privacy and money laundering issues
• Regulatory matters
• Relationships with strategic service providers
• Termination disputes
• Unfair claims practices
• Unfair competition and restrictions on competition

Understanding Your Needs

The Insurance & Reinsurance and Insurance & Reinsurance Dispute Resolution practices of Morris, Manning & Martin are national practices, covering a wide array of insurance and reinsurance matters. As we have handled numerous such matters over many years, we observed that few law firms understand and appreciate the broad and ongoing needs of managing general agents; thus, the firm formed this focused group to apply our knowledge and experience to this important and underserved segment of the insurance industry.

Contractual Matters and Disputes

Managing General Agents spend substantial time and resources cultivating networks of specialized agents.  These networks have real value, but often are not protected in the absence of special attention.  We are experienced in drafting and negotiating MGA contracts, making the most out of what often is the MGA’s weaker and problematic bargaining position as compared to the insurer.

We understand crucial considerations in negotiating an MGA agreement, such as the breadth of exclusivity and the insurer’s authority to compete via other agents or in-house personnel; the insurer’s authority to change underwriting or pricing criteria, particularly where such changes effectively could preclude the MGA from competing in the marketplace; the insurer’s right to terminate or suspend the MGA’s authority; the timing of notice before the insurer may undertake any adverse action; the MGA’s post-termination rights to “expirations” and the insurer’s authority to compete for subproducers and existing policyholders; the calculation of bonus commissions and the breadth of discretion accorded to the insurer in setting reserves; and the MGA’s right to commissions after termination.

Insurers have developed contract forms that favor the insurer. We assist the MGA in gauging its leverage and in identifying the important points for negotiations.

Regulatory Matters

MGA's occupy an unenviable position vis-à-vis state regulators.  Caught between the actions of subproducers and the strategic objectives of the insurer, MGA’s often bear the brunt of regulatory focus.  Our experienced regulatory lawyers understand the regulatory process and maintain excellent relationships with state regulators.

MGA’s restrictions and obligations continue to grow, as do expansive privacy and money laundering laws that directly impact MGA’s.  As a full service financial services and insurance firm, Morris, Manning & Martin brings to bear the multi-disciplinary focus necessary to navigate growing regulatory entanglements.

Litigation and Arbitration

MGA’s often become involved in litigation or arbitrations.  On the plaintiff’s side, following termination of an MGA relationship, the MGA may need to resort to litigation or arbitration to obtain commissions and bonuses and to protect its agency network from insurers or competing MGA’s.  On the defendant’s side, the MGA often is sued in matters involving the alleged misconduct of a subproducer or matters brought by the insurer or an insured for professional negligence.

We have extensive experience in litigating insurance and agency matters.  We counsel our clients in setting strategic objectives and focus upon obtaining those objectives as efficiently and cost-effectively as possible.

Given that many MGA contracts contain arbitration clauses, our extensive experience in arbitration is valuable.  We are knowledgeable in negotiating such clauses, an exercise which may have a dispositive effect in resolving future disputes, and in handling the arbitrations themselves.

Business Considerations

Strategic opportunities for MGA’s are expanding, and we have experienced lawyers on the cutting edge of the MGA business.  Our lawyers are able to assist in negotiating “roll-up” and strategic partnering opportunities involving regional brokers, reinsurers, banks and traditional insurers.

Even the every day activities of the modern MGA trigger legal issues.  For example, an MGA’s programs and procedures may be protectable as intellectual property.  As the entire insurance industry becomes more dependent on electronic forms of communication and data transfer, our MGA clients realize substantial benefits from the extensive experience of our technology lawyers.

Handling the wide array of legal matters faced by MGA’s requires knowledge of the business and experience in applying that knowledge. Morris, Manning & Martin’s lawyers bring that knowledge and experience to the table.