A deduction usually expressed as a percentage of ceded premium, in a calculation of profit or contingent commission. The amount is intended to account for the reinsurer’s internal expenses.
Insurance Encyclopedia
Management Information Systems (MIS)
Computer packages designed to assist the risk manager in making decisions by organizing and analyzing data available to the risk manager.
Management of Health and Safety at Work Regulations 1999 (MSHW)
Regulations principally concerned with risk assessment, management, health surveillance, use of competent assistance and provision of information and training for employees. Employers and the selfemployed must carry must out a risk assessment and have arrangements for effective planning, organisation, control, monitoring and review of their preventative and protective measures. Employers with five employees or more must record their assessments. Regulatory breach is a criminal offence and, by an amendment, it is intended to allow civil claims against the employer.
Management Oversight and Risk Tree (MORT)
System safety technique which analyses all phases of a safety program or safety management system. Its basic tool is a chart identifying the significant elements of a safety program or safety management system.
management services organization (MSO)
Type of publicly or privately held administrative group that gives strategic, financial, and operational plans needed by physicians, clinics, and ancillary service providers for a successful managed care business enterprise. The MSO contracts with payers, hospitals, and physicians to provide services such as negotiating fee schedules, handling administrative functions, billing, and collections. An MSO may own the facilities and employ nonphysician staff to deliver care or may be a direct subsidiary of a hospital or owned by investors. Sometimes referred to as medical services organization (MSO) or physician management corporation (PMC) .
Manager
A title generally given to the person heading an insurance agency’s branch office. The manager is usually a salaried employee who also receives a bonus based on the volume of business conducted with the agency.
Managing agent
at Lloyd’s, the person (individual or corporate) who manages a syndicate, conducts the underwriting, invests syndicate funds and prepares syndicate accounts.
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An underwriting agent which has permission from Lloyd’s to manage a syndicate and carry on underwriting and other functions for a member.
Managing agents
Corporate bodies responsible for running Lloyd’s syndicates. They appoint the active underwriter and the staff. The mana ing agent’s agreement sets out the duties, powers and remuneration of the agent and obligations of the member. Since 2003 managing agents have been granted franchises to operate within Lloyd’s. Some even provide capital to the syndicates they manage in which case they become corporate members. Lloyd’s has published a number of codes of practice for managing agents.
Managing agents agreement
A standard form agreement between a member and the managing agent of a syndicate on which the member participates which sets out the powers of the managing agent and the obligations of the managing agent and the member towards one another. There are two forms of managing agent’s agreement: the managing agent’s agreement (general), which applies to every member that has a members’ agent and the managing agent’s agreement (corporate) which applies to every member that does not have a members’ agent. Copies of current versions of these agreements are annexed to the Agency Agreements Byelaw.
Managing general agent (MGA)
US: A specialized type of insurance agent/broker that, unlike traditional agents/brokers, is vested with underwriting authority from an insurer. Accordingly, MGAs perform certain functions ordinarily handled only by insurers, such as binding coverage, underwriting and pricing, appointing retail agents within a particular area, and settling claims. Typically, MGAs are involved with unusual lines of coverage, such as professional liability and surplus lines of insurance, in which specialized expertise is required to underwrite the policies. However, MGAs also write some personal lines business, especially in geographically isolated areas (e.g., western Oklahoma, North Dakota) where insurers do not want to set up a branch office. MGAs benefit insurers because the expertise they possess is not always available within the insurer’s home or regional offices and would be more expensive to develop on an in-house basis.
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An agent standing between an insurer and other agents. The MGA sells to retail agents, who then sell to the consumer. MGAs often are said to have the pen because they are given the authority to accept, underwrite, and price submissions received from retail agents.
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MEDICAL,USA: Independent contractor authorized to appoint personal producing general agents (PPGAs) on behalf of an insurance company and who may represent more than one company.